Calculation of equity capital in connection with KfW loan

The rumor somehow persists stubbornly, although no one has confirmed it so far Maybe it was like that in the past.

I'm reading this for the first time as well. KFW are external funds, meaning loans. Some banks like to entice by adding a bonus on the KfW loan. But for that, they are often more expensive on the rest. So always understand and decide based on the entire package.

Of course, that needs to be checked carefully... But I'll gladly take the €100,000 for 1.3% over 20 years. And sure, more equity is always better. But unfortunately, I can't pay the whole place with equity. :p Weren't there the 80% and 60% thresholds where the interest rate drops in financing? Meaning, with 20% equity, there's a better interest rate than at 15%. At 25%, the interest rate stays the same since the next threshold is only at 40% equity??? Although... that probably varies from bank to bank... :confused:

Weren't there the 80% and 60% thresholds where the interest rate decreases when financing? Meaning with 20% equity you get a better interest rate than with 15%. But with 25% the interest rate remains the same because the next threshold is only at 40% equity???

Yes, the only question is what value you have assumed for the house. Are the incidental construction costs + incidental purchase costs included or not.

I have experienced that banks include different items of the construction and purchase incidental costs for the determination of the loan-to-value ratio. But that means that all those costs that are not included reduce the equity. So it can be that if you are right at the threshold, with one bank you have less than 20% equity and with the next bank more than 20% equity.

That is why I wrote above "simplified view".

Ok. I have included all the presumably arising and to be financed costs. "To be financed" means that, for example, the costs for the outdoor area, kitchen, etc. are not included, since these are not to be covered by the loan (as far as I understood). But as said, this is only about rough estimates.

External facilities could be included in a lump sum of €15K with us, for example. Anything above that only with quotes. Kitchen rather not.

So also individual again. Really crazy with the banks.... :D But thanks for the info.