Building account or regular account, experiences?

Hello,

I wanted to ask how the construction account works, specifically how it proceeds after signing the loan agreement. Is the construction account like a regular account where you can pay your construction invoices, or how does it work?

I would appreciate your answers!

Best regards, elaine

Hello Elaine13,

I understand it as follows: all construction-related invoices are paid by you via the construction account, and only after completion of your construction project is the construction account balanced again with the approved construction financing.

Basically a good thing. But be sure to pay attention to the interest rate the bank charges you on the construction account.

This is usually significantly higher than the interest rate agreed upon in the construction financing.

Best regards

M. Thiemann