Construction financing on an existing plot

I would also like to additionally recommend being very honest with yourself and both keeping a household budget for some time and preparing as accurate a statement of expenses as possible.

You can then look at this yourself to see what the maximum monthly payment can be. I have experienced that banks use different figures that may leave too little money for living in your own situation.

I experienced that banks apply different figures that perhaps leave too little money for living in one's own situation.

Oh yes. In 2022, the bank would also have given us a loan with an installment that I would have felt absolutely uncomfortable with and which, due to the massive price increases in groceries, we would probably now only be able to manage with great difficulty. I’m glad that I said right away back then that I would not make more than X € per month in installments. Fortunately, the house purchase still worked out.

Oh yes. The bank would have also given us a loan in 2022 with an installment that I absolutely wouldn’t have been comfortable with and that, due to the massive price increases in groceries, we probably would now actually only be able to manage with great difficulty. I’m glad that I said right away back then that I would not pay more than X € per month as an installment. Fortunately, the house purchase still worked out

Luckily! Just my experience: About 6 years ago, I was already interested in the topic of buying a house. At that time, I was shown an installment that would be possible, after which I would have just over €700 left. So for everything, including additional housing costs, everyday expenses, car (rural area), insurance, and much more. That was already one of the larger building societies back then, and the calculation shocked me. It would have driven me to ruin. The bank I’m currently dealing with assumes much more realistic figures there (but still personally a little too high for me).

I was in the same situation and had a plot of land + 150k equity. I first started building and when my equity was almost used up, I went to Dr. Klein and took out another 100k there. The advantage of this is that you can then better estimate how much more you need and don't borrow too much. Also, you don't have to pay any commitment interest because you can use the money immediately.