Evaluation of Savings Bank Interest Offer

Even if a bank does that, in second place in the land register, the interest rates will hardly be better than 4%. The Sparkasse knows that of course and offers you accordingly.

Does it make sense to obtain another offer here or how do you assess the conditions? Good or bad?

We had the same "problem" at the beginning of 2022. We also already have a loan on the property (but for longer than you). Our bank didn’t want to "let us go" either. We then negotiated a bit (we always paid, never any problems, etc.). We then got 3% for 15 years. We can live with that (about 30% of our income). At that time, numbers and statements were flying around in the forum where I wondered how some managed to get 1.2% and so on. Some were lucky, others had good advisors or a lot of equity.

Don’t let yourselves be misled. You don’t look bad either in terms of equity and income. Just go to another nearby bank and to a broker, explain your situation, and wait.

Hello, competitors will probably also make a more expensive offer since the property is already in 1st rank. But it is definitely worth comparing.

Depends on when "Anfang 2022" is for you. In January, 1.2% was still easily obtainable, from mid-February it was over with that.

Depends on when the beginning of 2022 is for you. In January, 1.2% was still easy to get, but from mid-February that was over.

I would have been at 2.5% in March 2022, 100% financing for 10 years (because of rental) but secured with 250% mortgage.

Yes, only financing the land long-term was a big mistake. Either short-term / without fixed interest rate or a complete financing of all costs from the start.

[QUOTE="sysrun80, post: 620097, member: 54773"] We had the same "problem" at the beginning of 2022. We also already have a loan running on the plot (but longer than you). Our bank didn’t want to "let us go" either. We then negotiated a bit (we always paid, never had any problems, etc.). We then got 3% for 15 years. We can live with that (about 30% of the income). At that time, numbers and statements flew around in the forum here, and I wondered how some managed with 1.2% and so on. Some were lucky, others had good advisors or a lot of equity.

Don’t let yourself be misled. It doesn’t look bad for you either in terms of equity and income. Just go to another bank nearby and to an intermediary, explain your situation, and wait.

We also financed the land through Sparkasse in 2018 at 1.67% (15 years). If the equity is right and above all the risk for the bank is very low, I don’t see any problems negotiating a "better" interest rate. Of course, it’s difficult if the land is only "one year" old and the remaining debt of the land loan is still correspondingly high. But you bring good equity for the construction, so I also don’t understand the 4 upfront. Back then, we received offers from many banks even though these would have been subordinated, and these offers were only marginally "worse" than Sparkasse’s. But true to the motto "never change a running system," we ended up with Sparkasse for loan number 2 as well and set up the house construction loan over 450k with 1.3% interest (15 years). :-D

And yes, we maintained a good relationship with the advisor, which was very useful for us; she was the one who called us when interest rates threatened to rise significantly and said, "now or never." Four weeks later, the 2 appeared before the comma in the conditions, and we were mega relieved to have still caught the curve.

With your HHE of just under 7k, I don’t see anyone crying over 3.9 or 4.1% interest ;-) BUT: asking costs nothing :)