Build before or after 01.04.2016?

I recently received a statement from my house bank on this topic that even the banks themselves are currently unclear about how exactly the funding through [KfW] is supposed to proceed. This specifically relates to the following scenario: I want to take advantage of the new conditions, so my bank can only submit the application at the earliest on April 1st. It takes, for example, 4 weeks until the approval from [KfW] is received and I have signed my financing. This would mean for the banks that they cannot complete any financings in the first weeks of April (except for the few cases where someone still opted for the old conditions) and a kind of financing backlog forms. From my bank’s perspective, this is not a sensible approach.

My bank would agree to a fictitious financing, basically with the expected conditions (speculating on 3x 100,000 euros for 20 years fixed KfW 153 for an efficiency house 55).

The current plan is that after the building permit is approved, we will finalize our financing; construction would not start before March anyway. Applications to the KfW can be submitted up to 3 months after the start, so we are sure to get the new conditions. The only downside is that quite a few things are still open and currently no one really knows what is really needed and how to best approach it at the moment.

Applications to the KfW can be submitted up to 3 months after the start, so that we are sure to get the new conditions.

I would not be quite as confident as you. The KfW states in their FAQ: "After receiving the grant approval, you can begin your construction measures. At your own risk, you can begin the construction measures as soon as the grant application has been received by the KfW." Rhineland greetings

The only problem is that quite a few things are still open and right now no one really knows what you actually need and how to best approach it currently.

Yeah, exactly that.

I would find it pretty difficult to sign a financing offer that states: "Interest rates within the framework of the KfW subsidy according to the announcement by KfW on April 1st."

Although it is not expected that the interest rates will be unreasonable, I would be bearing the full risk between early March and early/mid April. Additionally, since the interest rate conditions are not published, I wouldn’t know whether I would need to adjust my payment by €100 up or down.

Friends of ours did exactly the same – including the (fictional) granny flat – and made 200,000 euros with such an unknown...

I expressed my incomprehension about it, but they are confident that it will work out and expect 1.5%.

I would not be as confident as you are. The KfW writes in its FAQ: "After receiving the subsidy approval, you can start your construction measures. At your own risk, you can begin construction as soon as the subsidy application has been received by the KfW."

Rhineland greetings

Sure, a risk remains as long as you have to plan with unknowns. It would be desirable if the KfW would announce the conditions and not wait until March 31.

An energy-efficient new building requires solid professional planning and qualified support during construction. Within the framework of planning, application, and implementation of a subsidized project, an expert is required to support the builder.

The KfW grants loans from this program exclusively through banks, savings banks, and insurance companies (hereinafter: financing institutions), which assume liability for the loans they channel from the KfW. Therefore, the application must be submitted to a financing institution of your choice before the start of the project. The start of a project is considered the commencement of construction work on-site. Planning and consulting services as well as the conclusion of supply and service contracts are not regarded as the start of the project.

Here, a memo at the bank stating that you want and plan to build with the KfW is sufficient.