Construction financing with ETW as security for the loan

Apparently, with this structure, you do not have any residual debt at the end of the term. I am not quite clear about it yet. It looks as if every 10 years the sum accumulated so far is paid out and at the same time a new loan is taken out. As a result, you always pay part of the installment as fees, which I do not like. I know it as paying off the fees in the first 3-5 years and then that's it. However, my first question would be (if I should even consider this construct, e.g. because I get nothing else) whether the 1.39% interest rate is fixed over the entire term. To me, it looks as if it is reset every 10 years. So the interest rate for the later phases is also calculated here at 1.29%, but is that also guaranteed? The total installment increasing every 10 years is not the worst thing about this construct...

Whereas with this structure, you apparently do not have any remaining debt at the end of the term.
I’m still not quite sure about that. It looks as if the amount saved up so far is paid out every 10 years and at the same time a new loan is taken out.
As a result, you always pay a part of the rate as fees, which I don't like. I know it this way, that the fees are paid off in the first 3-5 years and after that it’s fine.
My initial question would be (should I even consider this structure, e.g. because I wouldn’t get anything else) whether the interest rate of 1.39% is fixed for the entire term. To me, it looks like it’s reset every 10 years. The interest for the later phases is also calculated here at 1.29%, but is that guaranteed?
The total rate increasing every 10 years is not the worst thing about this structure...

Thanks for the explanation, we also asked that question.

I also found this financing effort. According to our understanding from 2020 - 2030 we would have a monthly cost of approx. €733. If I understand correctly, we would then have a remaining debt of €225,000, see building loan phase 2.

If I calculate the effort from 2020 - 2030 and subtract the amount of €340,000, I also get a remaining debt of €259,000 and not €225,000.

One consideration would be to start with the €733 until 2030 and in 10 years look for a new lender, possibly sell the currently occupied condominium (which will then be paid off) and use the proceeds for the follow-up financing.

I find the whole construct very opaque. Apparently, you have almost €2000 burden per month for six years at some point. I actually like dealing with numbers, but I don’t get it, I’m like in that regard. And in this case, you can only say: stay away from something you don’t understand.

I consider a normal annuity loan to be the better choice. At least then you repay from the start. That way you save, pay no interest on that amount, and at the same time pay interest on the entire loan amount. If you calculate that, I wouldn’t be surprised if in the end you pay more interest than with the annuity loan with 2.2% interest that was mentioned at the beginning and supposedly "is out". Please recalculate!! If you want to be flexible, first agree on a low repayment and then (really!) work with special repayments. Someone here mentioned that they have already fixed a larger special repayment in the contract because a sum from the sale of the previous property was expected at a certain point in time.

We seem to have found our way - 1% repayment at 1.15% - fixed interest for 10 years - installment fully within our budget. We are bringing equity. [ETW] will be rented out and will be paid off in 4 years. In about 9 years, we will consider a sale of the [ETW] for the follow-up financing and possibly carry it out.

In about 9 years

Remember that the speculation period for rentals is 10 years.

Remember that the speculation period for renting is 10 years.

But not if you have already lived in the apartment before? I have been living in the apartment for 6 years.