Construction loan without building permit possible?

Hello everyone,

I have a question for the experts here. We are in the following situation:

We have purchased a plot of land, which we paid for including incidental costs from equity. Currently, we are in the final coordination with 2-3 developers (final decision in about 4-6 weeks). Afterwards, the building permit will be issued (oral preliminary building inquiry has been positively certified – the new building is supposed to have approximately the same dimensions as the demolition object). I have now received a very good financing offer from the bank: 480,000 euros for 20 years at 0.87% with 12 months free of commitment interest.

My question: Can I conclude a loan agreement now under the above-mentioned conditions? I assume that the 20-year interest rate will rise.

Thanks for your help!

With us, the building permit was a prerequisite for concluding a loan agreement at all.

If the costs of the construction are already known, it can be done.

The bank usually wants to see what they are financing, namely: the [GU-Vertrag]. So I would say: no.

Ah sorry: I have to correct myself, the building permit was a prerequisite for the payment. However, I still wouldn’t have signed a loan agreement beforehand. Who knows if the remodeling won’t make the construction more expensive.

Also note that the 12 months start from the conclusion of the contract. If you do not yet have a construction contract, you will not finish the house in that time.