Building savings contracts with two banks, financing new construction with two banks?

  • Erstellt am 2024-07-13 12:19:27

CheoRatharsair

2024-07-13 12:19:27
  • #1
Hi everyone,

my girlfriend and I have building savings contracts with two different banks, which we want to use for a new construction. In addition to the building savings contracts, we also need a regular loan.

Is it possible to get a loan from our building savings contract at Bank A and B for the same new construction project and then borrow the amount that is still missing besides the building savings contracts from Bank A or B or even a third Bank C?
 

nordanney

2024-07-13 12:28:38
  • #2
Depends. Do the building societies want land charges? What maturities? The answer will be no 99% of the time, as long as the building societies require land charges.
 

CheoRatharsair

2024-07-13 12:42:56
  • #3
We do not know that yet, we are still at the beginning of the process. So as a rough rule of thumb, usually you can only register a mortgage on the construction project with one bank, correct?
 

nordanney

2024-07-13 12:50:06
  • #4
Basically correct. It has to do with the security. Whoever is first in the land register is in the first rank and gets their money first in the event of a forced auction. Only 60% of the lending value (not the purchase price or costs) is the security that a bank has. But hardly anyone finances that little (50% equity required). So a second or third bank, which should finance subordinately, will say no. Because then they have no or no real security. They would practically give you a loan based on your creditworthiness, but not on the house. This is called an unsecured loan. These tend to have interest rates around 8% for long terms – if you even get one. But as I said, you need concrete data for that.
 

Grundaus

2024-07-15 15:13:55
  • #5
Smaller building savings loans are available without a land register entry. I once heard something about 30,000.---, which together with the saved equity capital would then be 120,000.--
 

CheoRatharsair

2024-07-15 16:28:02
  • #6
Thank you, that was exactly what I wanted to know, have a nice day everyone :)
 

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