Does the bank require our own equity when taking out a loan?

That depends...

Example 1: Equity 100k €, land including additional costs 75k => The bank will most likely insist that you pay the land including additional costs from the equity.
Example 2: Equity 100k €, land including additional costs: 150k € => "Standard": You pay the additional costs and "as much as possible" of the land price from the equity, the rest from the bank. Variant "Baubegleitend": For example, you pay the additional costs and 50k € of the land price from the equity and the rest is paid by the bank from the loan.

Important: Always keep enough equity for the additional costs and do not use everything for the purchase price of the land. Notary, land register you should definitely keep back at first.

PS: In case of doubt, simply call the bank, make a proposal on how you would like it and listen to what the bank says.

Thank you Wadenkneifer. According to our financier, we apparently have to cover 20% of the purchase price of the land from our equity. The rest of the remaining equity must then probably be used for notary fees, property transfer tax, etc. Do you happen to know whether the house connection fees also have to be paid from the equity, or if the bank covers that?

That also certainly depends on the bank, so it’s best to ask. Every bank handles equity differently.

For example, we had already paid for the land including its incidental costs from equity and only then took out the loan. The corresponding equity only had to be proven by a bank statement; afterwards, the bank was basically indifferent as to what we paid with the loan and what with equity. We could also have had the house connection costs run through the bank. We also did not have to prove that we spent our equity first and only then used the loan (although with most banks this is probably the case). The disbursement process also varies between banks. It is often the case that you send the invoices to the bank and then they release the money, which, as wadenkneifer already wrote, can be quite annoying for small amounts. At other banks, as with us, you can have a larger amount disbursed, pay several invoices with it, and then send the copies of the invoices to the bank afterwards. Of course, this is usually the easier way since you don’t have to run to the bank for every little thing. So you see, it’s a bit different with every bank. So really, it’s best to ask how they want it done.

I gave the house connection costs as an example because with us, for instance, 3-4 smaller invoices come together, for which we would have to request a payment each time if we did not have to pay these costs from equity. Unfortunately, at our bank, there is no possibility to have an amount paid out to us from which we can first pay certain invoices "freely" and then submit the invoices as proof. The procedure here is always: submit the invoice, it is paid by the bank.

Unfortunately, at our bank there is no possibility to have an amount paid out to us from which we can initially pay certain invoices "freely" and then submit the invoices as proof. The procedure here is always: submit invoice, bank pays it.

I asked my bank this exact question today. We will face costs of > 10,000 euros in the next 2-4 weeks, with amounts between 500 and 3,000 euros each. The bank stated a minimum payout of 10,000 euros. Let's see if the bank agrees that 10,000 euros go to my checking account, I pay, and then submit the invoices as proof.
If not, our equity would be completely depleted without knowing what else awaits us in the coming months.

Thank you for the information. We probably need to obtain the clear terms directly from the financer. Is it advisable to have these procedures confirmed in writing by the bank, specifying exactly what can be billed, so that there are no unpleasant surprises later on?