Banks with a long interest-free provision period for new construction

The usual period during which a bank does not charge commitment interest is 12 months. However, this is by far not enough for typical construction times of 24 months (whether a prefabricated wooden house or a solid house), and one would have to pay at least half a year, if not a whole year, up to 2.5% per year of the loan as a "penalty interest." That amounts to €12,500 for a €500K loan, and still a hefty €10,000 penalty interest for €400K.

So far, I have only heard of a local Kreissparkasse that managed to negotiate a 24-month period. Banks are really lagging far behind in their short penalty interest-free periods compared to developments!

You only pay the commitment interest on the undrawn portion. Most of it has usually been spent after 12 months. ;-)

Take a look at the Allianz. Until a year ago, they still had 18 months and, with a good reason, even 3 more months. In case of doubt, ask there.

Interesting, thank you. Allianz was number one with one of our brokers for large, long-term loans...

We have 18 months with the Sparkasse.

and : Did they tell you how much they add on top of the interest rate for this option?