Bullet loan to avoid bad KFW interest rate?

Here’s a thought experiment. We will use the full loan amount in the KFW 153 program for two residential units. That makes €240k loan volume. The rest will be covered by a normal annuity loan. To get an affordable installment with the KFW, longer terms are necessary at the current interest rate of 0.95%. On the open market, we have offers at 0.5%, which is significantly better. What do you think about choosing the bullet loan option at 1.0% with the minimum term of 4 years? Then the whole thing could be secured promptly through a forward loan. Depending on how long one stays "cool," quite a bit could probably be gained from that, right? Do banks maybe even do this at the initial contract signing if the remaining amount beyond the KFW loan is contracted simultaneously? It’s really annoying that the repayment subsidy is still tied to a loan until July.

If things are tight for you, choose a longer term instead of being caught off guard by rising interest rates.

P.S. Even worse, [KfW loans] could be offered from 1.7. with as low as 0.01%

No, it is not tight. One just doesn't want to spend more than necessary. Maybe someone here in the forum has already done it that way? ...0.01%. It really makes you think about postponing the matter for another half year.

P.S. Even worse, that KfW loans could be offered at 0.01% starting from 1.7.

Do you have any more information on that?

Do you have more information on that?

There is no information on that yet. Only the fact that from 01.07. the KfW can technically also pass on negative funding rates to the banks. So far, the funding rate is 0, even if the actual funding rate (as with many covered bond banks etc.) is actually negative. Thus, a KfW loan CAN go down to almost 0%. Example: Swap mid-rate 5 years currently -0.35% plus margin 0.72% = customer rate of 0.37% possible (roughly simplified).

Whereas the KFW interest rates increased last Friday for many funding programs...