Hello,
we have been done with our own construction financing since February 2021. It was done through Interhyp, we got portal access there.
Now I wanted to do some calculations and playing around with this account for someone else, of course adjusted salary, place of residence, etc. all adapted.
I was shocked.
Condominium including tax, land register, etc. 90K
We have equity of 20K. More would be available, but we only wanted to roughly meet the 20% equity quota.
Result of the first search for a 10-year fixed interest rate = Sparkasse with 1.45% at 6% repayment :oops: What? :oops:
Sure, the personal consultation at Interhyp with an appointment will pull out a few percentage points but not below 1%. We would have gotten the 10-year fixed rate in February for between 0.7%.
Has everything really shot up that much in recent months? Is the loan amount too low/unattractive? Any other mistake in my thinking?
Or simply the reality :p
Good morning,
I assume:
Purchase price 80,000€
thus financing 70,000€?
Many banks have adjusted the minimum loan amount to 100,000€, ING to 75,000€
This is because if you get 1% interest, then over 10 years on a 75,000€ loan they take about 7,000€ in interest... then subtract the administrative costs, the costs for the review etc... and what remains? Not much.
With 750,000€ they have the same work but collect 10 times the interest... that's why many banks offer cheaper interest rates starting from 150,000€ than at 75,000€, and from 300,000€ often 0.05/0.10% cheaper!
But back to you,
if the apartment costs 80,000€, and you would finance 75,000€, then ING would offer 1.18% for 10 years (no matter if with 1%, 3%, or 10% repayment).
If you need help, just get in touch!