How does it look? Which loan did you decide on?
Hi, we decided on the following 3 (4) components:
1. KfW153
€120,000 loan (with €18,000 repayment grant because of KfW55)
Term 30 years (unfortunately only 10 years fixed interest rate at 0.75 %)
Initial repayment 3.0879 %
1st year no repayment
2. KFW124
€100,000 loan
Term 25 years (fixed interest 10 years at 0.85 %)
Initial repayment 3.7575 %
1st year no repayment
3. MHB with Forward and Münchener Reverse
€355,000 loan
Term 30 years (fixed interest 30 years at 1.23 %)
Initial repayment 1 %
2 years forward (therefore repayment starts only in April 2022)
Special repayment with Münchener Reverse in the amount of 5 % annually (anytime and not only at the end of the year; minimum €200); Reverse means that you can have the paid-in special repayment amount partially or in full paid out again. Up to 3 times during the term and you must then withdraw at least €5,000. Nice to have, but you’d rather not want to use it.
The Reverse and Forward were also included in the offer at no extra cost.
Also the option to change the repayment rate 3 times during the fixed interest period; between 1 and 5 % repayment
(4.) The MHB loan is interim financed by the Raiffeisenbank at 1.2 % until the forward expires (interest payment only)
Generally: Choosing the KfW153 is obvious because of the repayment grant; we had planned KfW5 anyway. Additionally, we also decided for the 124 because the two KfW loans were basically counted as equity and thereby we achieved a significantly lower loan-to-value, which among other things made the great main loan for 30 years possible.
Overall, we have an initial repayment of 1.92 % at 1.06 % interest (knowing that after 10 years a residual debt from the KfW remains). This is at least largely secured with a home savings contract that has already been funded for some time. The initial monthly rate (annuity from April 2022) is €1,427.46
What exactly is that product, I’d be interested …. because MHB had told us they only finance existing properties and no new builds … is that then because of the interim financing that runs for 2 years after which it is no longer a new build or how does that work?
Of course MHB also finances new builds. Otherwise, not much nice business would remain as a construction financier.
15 for 30: Means you pay the interest rate for 15 years fixed but get the 30-year fixed interest period.
If the Volksbank/Raiffeisenbank takes on the interim financing (usually at the same conditions as MHB), you get a discount on the MHB loan. Reason: No effort for MHB during the construction phase.
Exactly ! That’s how it is. If I understood our bank advisor correctly, the special credit program is currently no longer available. But Nordanney had already mentioned in one of his earlier posts that it is probably offered 2-3 times a year.
Regarding your question whether they then no longer see it as a new build, I can’t say. The loan for us was not directly through MHB but through a Raiffeisenbank in which MHB acts as a sales partner. The Raiffeisenbank is also entered in the land charge and not MHB.