Construction costs: Do lenders have to provide proof of construction costs without investments?

Hello HilfeHilfe,

we have submitted all costs, plans, and evidence!
The ancillary construction costs include, for example... structural engineer, architect, official fees, house connection, excavation, etc... These were prepared by our architect according to DIN 276.
Everything was submitted. We do not have land purchase and broker fees (new building). The land was gifted.
Ancillary costs such as notary fees (mortgage registration) we naturally pay from equity.

Regards Fragri

then I don’t understand your question. 345 or 300 according to DIN?

Or 300 according to DIN + additional construction costs garage/architect services etc 45 on TOP?

I would definitely clarify this directly with the bank. Also whether you can draw a certain amount (usually 10-20k) without proof for own contribution. If, contrary to expectations, the construction turns out cheaper, I would use the paid-out money to make a special repayment and reduce the loan in this way.

This is better than a loan reduction by the bank combined with a potential worsening of terms and/or a prepayment penalty.

Have you had alternatives offered? Don’t just let yourself be fobbed off that it is the standard clause in the contract!

Hello, the construction costs are 300k€ plus additional costs of 45k€. The bank has received all the documents. Clarification with the bank is in progress... I will report! Of course, we also have alternatives... but they have higher interest rates... Regards Fragi

We can only use up to 10% of the loan amount.. however, if we had financed through a building society, everything would have to be used. It’s already more difficult to have a buffer there. With our bank, it’s also not a problem to get smaller amounts paid out without proof, for us 10,000 EUR in total. But I think it really is different with every bank. Online banks supposedly require proof for everything (I have heard this, but don’t know if it’s true??)

Best regards

Hello Naddl,
it's the same with us, 10% or a maximum of €20,000.
What makes me suspicious is why we have to prove €350k! Surely the building must later reflect the value, otherwise there will be problems with the financing... but we don't want to change the construction volume or the execution.
I just wanted to know if it is customary to specify fixed numerical values that are then binding.

For example, I might get a better deal through special conditions when purchasing various building materials (insulation, clinker bricks).
If in the end we come to €320k, according to the current contract version we have a problem because the bank wants to see €350k construction costs. At the moment the costs are only estimated! I don’t know what the final amount will be...

Regards, fragri