Condominium KfW55, financing owner-occupation from the developer

But then I would definitely get a few comparison offers or negotiate hard. Making money is all well and good, but then please no 10-year term for over 2%. I don’t quite understand the process either. The KfW provides the loan in the background. For everything else, the bank is then responsible, it appears in the land register and should also profit from the interest, right? Or is there then another settlement with the KfW in the background? I can’t imagine that.

Well, the bank doesn't earn much from KfW - there is only a small margin from KfW. Therefore, the bank wants and has to earn on its own financing. €45k is not great (in terms of volume), but it causes the same effort as financing €300k = high unit costs in relation to the revenue. Therefore, the condition fits quite well. Some banks also charge surcharges for financings below a certain limit. I just have an offer myself. Below €40k, it becomes half a percent more expensive at the offering bank.

: this is a 100% loan. There is not much room for negotiation downward. Maybe 10 basis points. There is definitely an interest surcharge included because the loan amount is less than €50k.

Still the question what happens with the remaining expenses...

: that is a 100% loan. There is not much room for negotiation downwards. Maybe 10 basis points. There is definitely still an interest rate surcharge included because the loan amount is less than €50k.

Still the question of what happens with the remaining expenses...

then just take a residual loan of €50,000 and you have another €5,000 for compulsory installations. that money is easily gone... and the interest surcharge is gone and possibly the whole thing might not even cost anything anymore. with such financing, you should make sure that the bank loan is off the table after 10 years.

I would secure the fixed interest rate for the KFW loan at 1.3% for 20 years and accordingly extend the term somewhat. But as my predecessor already said, definitely make sure to repay the bank loan within 10 years. Definitely pay attention to the agreement for annual special repayments!

Kind regards