Calculation of equity capital in connection with KfW loan

The advisor can also look this up in the above-mentioned list. This is handled differently from bank to bank.

I don’t understand this problem - which we have quite often discussed - unfortunately.

At the very beginning, we made a calculation with all the costs that arise. From the plot of land, notary, house costs, kitchen, outdoor facilities, budget for furniture, budget for lamps, buffer, etc. It was a pretty long list and below it was a sum. Let’s just assume it was 500,000€.

Then we made a statement with our equity and looked at what we wanted to contribute from that. Let’s also just assume 100,000€ here to stay with the example of the original poster. => 100,000€ equity

So we needed 400,000€ from the bank - no matter in which form, with or without KfW => 400,000€ debt capital

I took this list with me to the bank meeting and asked the bank advisor to mark the items for which we should please use our equity and for which we needed to submit invoices. => from my point of view a workable solution.

Due to the high equity share, the advisor said we should simply use our equity first and then gradually draw amounts while just submitting the “larger” invoices (>10,000€). That would be enough. Sometimes even 20,000€ was paid out almost blank.

But that depends from bank to bank. Therefore my recommendation as described above. Bring the most complete list possible to the advisor. He will then tell you what the respective bank “finances” and what you should rather pay from your equity.