Equity contribution for construction financing

Ok thanks. Then I will bring that up.

Or ignore it. Paying the few euros fifty during the construction phase is significantly cheaper than any surcharge hidden in the conditions for the next 10;15;20 years. Banks are not stupid. That is already priced appropriately in their calculation.

How do I handle this most effectively now? Is the contribution of equity negotiable? Or are the banks precisely counting on collecting the commitment fees?

Or simply wait until construction has started and then finalize the loan, while the first installments are still paid from equity. Until autumn, the interest rates should not change much (there is of course always a risk). Then six months could very well be enough. But normally, 12 months is the standard.

The practice. Early October 16 final meeting with the bank. Everything was settled then. Building application. Base slab January 17. So also the first invoice there. I won’t count the 800 for the approval. Now we have just signed the loan agreement and registered the mortgage. The terms were identical to October. We had discussed and agreed on that. The loan is now free of provision fees until mid-January 18. That’s more than enough. Now transitioning to July with invoice eight and 9 of 10 we will start to use it. So invoices 8,9,10 are still missing. That’s 49 thousand. There are 51 left for painters, landscaping, garage, kitchen, connections, surveying. Painters four, kitchen five, connection costs seven, surveying unknown, construction electricity water etc unknown, garage 7200. There should still be enough left for the gardener. Karsten