Evaluation of financing options for single-family houses

Hello everyone,

we are about to finalize our plans and now have two financing options available. I would like to hear your opinion on this. We are married, 30 years old, have two children, and want to build a single-family house on an already existing plot of land.

Needs assessment:
Plot: €116,000
Development costs: €0
Purchase price: €0
Construction costs: €450,000
(including incidental construction costs, garage, kitchen, ...)
Total costs: €566,000
Equity: €60,000 + plot
Own work: €40,000
Loan amount: €380,000

1st option (Variante_1.pdf)
Composed of a mortgage repayment deferral loan (HTAD) and an annuity loan (AD).

HTAD:
Nominal interest rate: 2% (fixed for 30 years)
Effective interest rate: 2.02%
Credit interest rate: 3%
(dynamic over the entire term, only the credit interest rate)
Term: 30 years
Loan amount: €300,000
Special repayment: 10%

Monthly rate: €1,165

Expected until repayment of the AD (22 years) €1,165, afterwards €1,565
Term: 26 years
Total nominal interest: €180,000
Total credit interest: €95,000
With an average interest rate of 2% over the entire term. The credit interest would start currently at 3%, but it is dynamic and depends on the general interest rate development. Additionally, there is a so-called profit participation here, but this is not considered as it is even less predictable than the interest rate development. Roughly speaking, the profitability threshold between option 1 and 2 is reached when the average credit interest on the HTAD falls below 1.35%.

AD:
Nominal interest rate: 2.29% (fixed for 15 years)
Effective interest rate: 2.32%
Term: 15 years
Loan amount: €80,000
Special repayment: 10%

Monthly rate: €286
Term: 34 years
Total nominal interest: €36,000

Expected repayment monthly: €400
Term: 22 years
Total nominal interest: €22,000

Monthly minimum burden: €1,165 + €286 = €1,451
Expected monthly burden: €1,165 + €400 = €1,565
Flexible part: €400 - €286 = €114

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2nd option (Variante_2.pdf)
Composed of two annuity loans AD1 and AD2.

AD1:
Nominal interest rate: 2.1% (fixed for 30 years)
Effective interest rate: 2.12%
Term: 30 years
Loan amount: €300,000
Special repayment: 10%

Monthly rate: €1,125

Expected until repayment of AD2 (19 years) €1,125, afterwards €1,565
Term: 27 years
Total nominal interest: €102,250

AD2:
Nominal interest rate: 2.29% (fixed for 15 years)
Effective interest rate: 2.32%
Term: 15 years
Loan amount: €80,000
Special repayment: 10%

Monthly rate: €286
Term: 34 years
Total nominal interest: €36,000

Expected repayment monthly: €440
Term: 19 years
Total nominal interest: €19,500

Monthly minimum burden: €1,125 + €286 = €1,411
Expected monthly burden: €1,125 + €440 = €1,565
Flexible part: €440 - €286 = €154

Thank you already for all responses!

Best regards
Flo

Just a quick question, how are the 40k of in-house work composed?

These are estimated amounts we save through own work in various trades: electrical, flooring, painting and wallpapering, garage, etc.

Appreciated or already confirmed?

We have created a cost estimate with the architect and talked to the electrician we trust and then roughly arrived at these values.

Sorry, but you will never achieve that. In my opinion, about 10k is realistic.