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

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

Nothing at all. It was included from the start.

Hello,

so a 12-month construction interest-free period is standard at most banks.

some already offer 18 months or even 24 months free of charge.

at some, you can also "buy" a longer construction interest-free period in exchange for an interest surcharge.

just have your broker calculate what 24 months of construction interest-free time would cost, and then you have the comparison; it might be that the bank that is cheapest with 12 months is different with 24 months.

If I were you, I would also have it calculated with Excel to see what makes sense:
how does the interest (surcharge) compare to the commitment fees?

because usually the funds for: land, basement/floor slab, shell construction etc. are used relatively quickly, meaning if you already use 70-80% of the loan in the first 12 months, then the costs for the rest are manageable... and then it's better to pay a lower interest rate for 20 years than to save the 3000€ in commitment fees at the beginning but pay the bank 6,000€ more in interest over time.

as I said, only an Excel spreadsheet helps here, to see when which funds are drawn and what you actually have to pay in commitment fees

To keep things reasonable: The commitment interest rate with us is 0.2% per month, meaning that for a loan amount of €400k, it doesn't immediately add up to €10k or so, but for example €400 per month if half of the loan has already been drawn. Of course, it's not free, but you should make sure that you can manage with the loan and the interest-free commitment period to some extent. One month over schedule or even two shouldn't be a disaster....

....if, of course, you already take out a loan now, even though the house construction is not yet in the hot phase, maybe still waiting half a year for the building permit before it can even start, and then you basically start the construction phase already with interest, that would be bad....

....if you, of course, already take out a loan now, when the house construction isn't even remotely in the hot phase yet, maybe still wait half a year for the building permit before it can even start, and then practically start the construction phase already paying interest, that would be terrible....

That is indeed a problem. Let's assume you take out 600K, and have already invested 200K (=1/3) during the first year (e.g. half a year waiting time, then half a year of normal construction progress) and would then pay 2.5% interest on the remaining 400K in the second year, that would be a maximum of 10,000€ in total. Since the 400K decreases every month with each further payment, it will probably be a maximum of 5000€. The exact value can certainly be calculated with a formula. Unfortunately, I wouldn't know how. You could first assume a linear decrease of the remaining amount, e.g. 8.3% every month...

Planning is everything and quite simple. 1. Conclude a planning contract. This is paid from equity. 2. Shortly before the building permit, finalize the financing and the construction contract. With a 10-12 month construction time guarantee and 12 months of interest-free period, you have no problems with "penalty interest".

Conclude a planning contract.

Very interesting. That means that the planning is separated from the construction itself and that you only have to pay for the planning up to the building permit at first, right? Do the solid/wood prefab house providers even go along with that?