Construction financing terms okay? High equity ratio.

Hello everyone,

I would be very happy if some of you could give an assessment of our home financing offer from the house bank. I will try to break it down to the really relevant information.

House Construction Project Costs:

[*]Total project costs (all-in): €520,000 (land, house construction, double garage, all incidental costs, outdoor facilities, kitchen)
[*]Of which land: €100,000 (already paid from own funds)

Income & Equity:

[*]He: €3,300 net / She: €2,500 net (total: €5,800 net)
[*]Total equity for financing: €100,000 (+ the land already paid.)
[*]No other liabilities, apartment rented, no children

House Key Data:

[*]KFW 55 house with high standard on 168m2
[*]812m2 plot

Financing Offer:

[*]1.) KFW: €150,000, effective interest: 0.78%, 10 years fixed interest
[*]2.) Loan: €170,000, effective interest: 1.38%, 20 years fixed interest

What do you think? I would say that we are an almost ideal financing customer, as we bring a lot of equity, healthy income and no liabilities. Shouldn’t the loan rate go below 1.35%?

Thanks to you

If you compare this with a prominent neighboring thread (the loan-to-value ratio is similar), that would be too expensive. Recently, very good 0.9% was offered for the 20-year term there, with various offers around 1.2%.

Total project costs (all-in): €520,000 (land, house construction, double garage, all ancillary costs, outdoor facilities, kitchen)

Does not fit with…

KFW 55 house with high standard on 168m2

Regarding the interest rate, Loan 2: What is the repayment rate? Full amortization?
KfW is fixed, how high is it?

But I read house bank. There are certainly 0.2% "included"...

Too expensive. KfW is currently not worth it at all. 0.6+-0.05% for 10 years are currently available (without tying to KfW and the disadvantages there). For 20 see the above post.

No longer our current, but former house bank Sparkasse, offered us 1.7% for 20 years and celebrated themselves for it o_O Now we are somewhere between 0.9% and 1.0% - detailed review still pending!

Currently, two colleagues have received offers.

Planned new build approximately 750,000 euros through Sparkasse "Hausbank" 0.8% equity 30,000 euros and an apartment worth 350,000 which will not be sold.
Dr. Klein advisor, I believe, offered 0.7% for 10 years.

Monthly something around 1800 euros.

The other one an apartment about 140m2 360,000 euros. Equity only 30,000 euros, just enough for the ancillary purchase costs.

Monthly installment 1100 euros

10 years for 0.76 at Sparkasse
15 years 1.1
20 years 1.35
And 30 years 1.78

I think that’s good considering so little equity is brought in.