Construction financing: special repayments or not, possibly buying a new house?

Is the value or the value minus the remaining debt recognized as equity?

Of course! We have just built again and still have a small remaining debt on our current house, so almost the entire house value was counted as equity. However, I would keep a little bit of your 30,000 euros in equity to pay for notary and broker fees, because you cannot finance those costs.

Best regards
Sabine

However, I would keep a little bit of your 30,000 euros in equity to pay for notary and broker costs, because you cannot finance those.

But you can "offset" that. Actually, all reasonable banks are able to do this. Our equity was also tied up, so we effectively covered everything except 400€ almost entirely from the loan. Only now, at the end of the year, are the funds being reallocated.

of course! We have just rebuilt again and still have a small remaining debt on our current house, so almost the entire house value was counted as equity. However, I would keep a little bit of your 30,000 euros equity to pay the notary and broker fees, because you cannot finance those.

Best regards
Sabine

But how does the bank define the value of the house? According to what it would be worth on the market or do they have their own calculation for that? I mean to determine the fictitious equity.

that is the estimated selling price.

Best regards
Sabine