Bridge financing or sell inventory first?

I just came up with an idea. But I don’t know if it works. Isn’t it the case that after the fixed interest period you always have a special right of termination? I heard that there are also loans with only a 3-year term at very good conditions. Would something like that be an option as well? Then you would actually have enough buffer, great conditions, and could pay everything back after 3 years.

At that time, we financed the new property with the same bank, commissioned the real estate agent (which in combination led to the waiver of the prepayment penalty), and agreed on a suspension of repayment for the old loan during the transition period when both loans had to be serviced. A variable repayment rate on the new loan would be conceivable to keep the amount low during the transition and then increase it afterward.

We had split the new loan into two components: 1x short-term and 1x long-term.

The short-term loan (1% repayment / 1% interest) is repaid directly from the proceeds of the sale. The long component (1.x percent interest) remains for the remaining financing requirement.

There is certainly a double burden, but not in full amount. We had good experience with our house bank including personal contact. We reached a consensus very quickly with the head and decision-maker of the real estate center. I was surprised at how flexible the “old house bank” acted here.

Best regards!

Hello everyone,

the following situation:

Our currently occupied home is to be sold (there is a committed buyer), but since we do not yet have a date for the start of construction, we would rather not go to the notary too early and set any appointments (handover, etc.). However, the new financing needs to be finalized soon.

For the financing of the new house, it was planned that we would contribute about 100k in equity, of which 25k would be the repaid portion of the land and the rest from the proceeds of the house sale.

For the period until the sale, we would need to take out bridging finance, interest just under 3%.

Alternative: do not take out bridging finance, reduce the equity portion to 50k (we would then contribute 25k ourselves) and later have the amounts flow into the financing through special repayments. Although the loan amount would be higher, we would have no pressure regarding the house sale and would of course have a significantly larger buffer (after house sale) in case any further unexpected costs arise.

This already makes sense to us, but am I overlooking something?

When is the move into the new house realistic?

When is the move into the new house realistic?

If nothing else comes up now, June 22 would be doable.