Delay in building materials - extend provisioning interest

However, 70,000 equity capital also flows into the construction project. We would take this at the end with 12 months of commitment interest (the bank advisor said this is doable). With 24 months, you could use this first and save some interest.

But also check this again in the contract, in case the bank advisor here is only "an advisor" and not directly from the bank.
For example, ING initially wanted proof of use for the equity capital from us.

The ING initially wanted proof of use for the equity capital from us, for example.

It is exactly the other way around with us, by the way. The bank advisor said that equity capital must be used first, and the lady responsible for the disbursements told me that she didn't care at all. With this information, I could have saved a little bit of interest surcharge for the longer BFZ.

We had to make the same calculation since the financing was signed at the end of February and construction begins in October this year. After matching the installment plan with the construction progress schedule, we have already spent 40% before the 12 months expire. Afterwards, it will gradually decrease on a monthly basis. The bank neither wanted to extend the availability period for free nor was it possible to resolve it with a reasonable interest surcharge. We then agreed that debt capital [FK] would be used before equity capital, except for the demolition, and that the final installment (20k) would be withheld from the debt capital until the house handover. I will post a table later (if possible) showing how we have now calculated this for ourselves.

We are looking at approximately €2,500 in costs for the provision interest. We have set the start of repayment for August 23 (max. 18 months after the loan agreement). If we had accepted the higher interest rate, we would have faced €9k in additional costs over the term of the first fixed interest period. Even if we now need 2 months longer, that would be, in the worst case, perhaps another €1k in additional costs, but still less than the interest over the term.

Of course, construction with a general contractor is easier to calculate compared to individual contracting, but that does not mean that this does not also apply to a well-planned subcontracting project. I would consider the following if I had to make the decision:
- Do I already have an offer and a statement (if applicable, a commitment) regarding a construction time window from each trade?
- Can the trades agree in advance on an agreement concerning an execution date?
- How likely is it that the current situation will worsen and the schedule will be jeopardized by bottlenecks?
- Can I quickly switch to a competitor if one of the contracting parties fails?
- Which trades am I carrying out myself and do I have reliable statements from the building materials supplier regarding delivery possibilities and times?
- Have opportunity costs (rent, insurance for the construction, etc.) been included in the comparative calculation?

Have fun thinking about it :)

How do you come to the 5500.-- higher interest costs? If it is paid off after 20 years, you have to calculate with half the capital and pay 1% on 280000.-- over 20 years, or 2% on 140000.--, or do I have a thinking error there. If you build with GU, you can, if the trust is there and secured with a bank guarantee, also have the invoice issued earlier before the work is carried out

how do you come to the 5500.-- higher interest costs? If it's paid off after 20 years, you have to reckon with half the capital and pay 1% on 280000.-- over 20 years, or 2% on 140000.--, or am I making a mistake. If you build with a general contractor, you can, if the trust is there and secured with a bank guarantee, also get the invoice earlier before the work is carried out

The consideration was as follows: 12 months free provision time at 1.3% interest for 15 years or 24 months free provision time at I believe 1.56% (or 1.58% – I don’t remember, we discussed that on the phone). Based on a 450k loan, I come to about 9k extra costs over 15 years just so that we save 2.5k in provision interest in our example. Assuming I’m not making a mistake now, the solution with only 12 months was better for us. *Edit I would also not want to make advance payments with a bank guarantee, but that is a personal matter of attitude :-)