Construction financing with life insurance?

Hello

There are more and more "special requests". At first, it was about 85k for the house, the life insurance is assigned as a payment suspension and the renovations are gradually paid from the saved payments that go into the life insurance.

Now it should be 85, preferably 100 + 50k renovation.

Basically, banks also have difficulty accompanying 100% of the renovation. Usually, you have to bring 50% of the renovation costs as equity. Cash, no "muscle mortgage".

Do you have the equity there? At least for the incidental purchase costs?

In my opinion, it will be difficult to assign a life insurance and accompany 100% of the purchase price + renovation.

Goldi, this is just my personal opinion and nothing more ) It can be immediately put in the lowest drawer ))

If I just calculate, 100,000 at 4% over twenty years, after 20 years I will have paid 80,000 to the bank and still have 100,000 to repay. In this case, however, I would have to plan for a rate of 333 per month! If I don't pay a monthly rate, then in the end I won't have 80,000, but a much higher amount due to compound interest) My LV with 400 per month (currently with interest guarantee, no idea how much) I would guess that at the moment the processing fees would eat up the profit (! just estimated, one can also be lucky in life!).

Let's say the LV returns the money at least, that would be 96,000 (could also be more). So 100,000 (financing) + 4% interest yearly = 219,000 - 96,000 LV (should be more too, but currently it looks like that) = 123,112

I'm sorry, but if I simply include the LV contribution (purely mathematically) into the repayment: 100,000 * 4 - (400 * 12) = then I already have 99,400 in the first year.

And anything can always happen! With a new building I know exactly that for the first 10 years everything is in the green. Very low maintenance costs!

Regards Waldemar

Hello

There are more and more "special requests." At first, it was about 85k for the house, the life insurance policy (LV) was assigned as a payment suspension, and the renovation would be done gradually from the saved repayments going into the life insurance policy.

Now it should be 85, preferably 100 + 50k renovation.

Basically, banks also find it difficult to co-finance 100% of the renovation. Usually, you have to bring 50% of the renovation costs as equity. Cash, no "muscle mortgage."

Do you have the equity for that? At least for the incidental purchase costs?

In my opinion, it will be difficult to assign a life insurance policy and finance 100% of the purchase price + renovation.

Please be kind and read carefully first, these are not more and more "special requests."

And once again, it is about possibly finding someone who is already familiar with such a financing model, has experience with something like this, and might be able to give us tips, etc.
Experience can also mean that someone intended to do this but did not find anyone who would finance it, etc.

I don’t understand one thing: Why not a loan with 100 TEUR and low repayment, let’s say fixed for 15 years at 3.4% and 1.4% repayment rate = 400.00 Eur with repayment!!! After 15 years you have a remaining debt of 72 TEUR and your LV has also been paid into for 15 years, surrender value then? Now after 15 years we have such high interest rates that you can’t pay it anymore--->> cancel LV-->> loan gone. Where is the risk? Now the comparison 30 years fixed interest rate currently let’s say 4.25% if you are lucky. 30 years interest payment 350.00---> after 30 years entire LV gone. No retirement provision anymore available.

Just inquire with the insurer where you have the LV, it's a good deal for them-->> they like doing that!!!!

Please be so kind and read properly first, this is not about more and more "special requests" here

And again, it’s about possibly finding someone who is already familiar with such a financing model, has experience with something like this, and can maybe give us tips, etc.
Experience can also mean that someone planned something like this and didn’t find anyone to finance it, etc..

Goldi, don’t be mad at me, but many are trying to tell you: You’re trying to put the cart before the horse. And no one has been financing through the LV for a long time. It’s clear that banks like to do it, they just can’t make more money!

Regarding the question itself. I have never done it, and cannot recommend anyone who sells something like this!

Regards, Waldemar