Construction financing: Is building a house possible? Please provide an assessment

Ever talked to your main bank or a broker?

You are currently with the equity anyway in the over 100% range. The selection of banks is significantly smaller there. Also, more than 100% is always quite a bit more expensive.

What exactly does "quite a bit more expensive" mean? You see that everywhere... can someone put that into numbers? It's probably about the interest rates. What would be good conditions right now, for example, with 20-30% equity and an interest rate lock of 15-20 years?

I have currently received an offer on first inquiry: 1.5% with 21% equity and 15 years fixed interest period.

>100% will probably be in the range of 2.5% or even slightly above. Doesn't sound like much, but it means about 70% higher interest burden (which is missing during repayment, at the latest at the end of the fixed interest period).

I currently received an offer on first inquiry: 1.5% with 21% equity and 15 years fixed interest rate.

>100% will probably be around 2.5% or even slightly above. Doesn’t sound like much, but it means about 70% higher interest burden (which is missing in the repayment, at the latest at the end of the fixed interest period).

That’s exactly what I suspected... we got financing with about 7% equity and interest rates between 1.7 and 1.9% (different components of the financing with 15 and 20 years fixed interest) ... even despite the temporary contract of the current sole earner.

So for 20 years at 100%, it's around 2.54%.
If I only take up 80%, then we're at about 1.7%.

And for the part over 100%, you can usually calculate with a small loan of around 6%.

And the higher the loan-to-value ratio, the fewer banks/insurances participate. There, repayment rate changes or similar comfort aspects are much less common.

In addition, in the >100% range, the other criteria that require approval are often more strictly defined.

Therefore, the most important thing is that the TE sits down with their main bank or 1-2 brokers to see what flexibility they see for their specific situation.

From my own experience, our red statutory health insurance didn’t even look at me twice; they were only interested in including as many BVS as possible; while a large German bank just shook their heads and couldn’t get things done fast enough (there we fixed the term at 20 or 29 years).

So for 20 years at 100% it's around 2.54%. If I only have to take 80%, then we're at about 1.7%. And you can basically always calculate the part over 100% with a small loan of around 6%. And the higher the loan-to-value ratio, the fewer banks/insurances will go along. There the amortization rate switches or similar comfort aspects are also significantly less widely spread. In addition, in the >100% range, the other criteria that require approval are often defined more strictly. That's why the most important thing is that the OP sits down with their house bank or 1-2 brokers to see what flexibility they see for their specific situation. From my own experience, our red house fund didn't even look at me twice; or rather, it was only trying to include as many BVS as possible; while a large German bank just shook their heads and couldn't go fast enough (we fixed it for 20 and 29 years)

As I said... we're at 1.7-1.9%... with our red house bank. The difference seems to me (if you catch correspondingly capable and customer-oriented people) not nearly as big as is often said.

roten Hausbank

But they vary greatly regionally. For professional reasons, I deal with 3 of them. Their mortgage strategies differ significantly.