Finance construction project, total costs: €395,000

:

1-1.99% repayment on new contracts:

In 2016: 9.76%
In 2015: 14.5%
In 2014: 27%
In 2013: 34%
In 2012: 39%

The data is from the Europace Report. This is the platform that some larger (e.g. Dr. Klein) and smaller brokers use; so quite representative.

Is this publicly available? Do the data really only refer to loans for new buildings? Our financer cited quite different figures ("As soon as you make an initial repayment of over 2%, that is already quite a lot and above average")

Google "europace Index". There you can see many interesting data about real estate financing that runs through the platform.

No; not new constructions. Newly concluded loans.

Don't be confused, over 2% is already a lot and rather rare than under 2%. The statistics also include KfW funds percentage-wise, where the repayment rate is currently already - mostly over 3% - higher, has to be higher.

Of course as much as possible, but also what one can manage and above all so that one can still build reserves. The mandatory repayment rate change option is already indispensable and cannot be left out, thus a must.

Not being able to initially bring in 2% or more repayment must not necessarily lead to not realizing the project. A few more parameters have to be considered in order to decide and especially assess whether the project remains sound even with a lower repayment.

:

1-1.99% repayment on new contracts:

In 2016: 9.76%
In 2015: 14.5%
In 2014: 27%
In 2013: 34%
In 2012: 39%

The data is from the Europace report. This is the platform used by some larger (e.g. Dr. Klein) and smaller brokers; so quite representative.

Can you explain this statistic to me in more detail? I don’t understand it, what do these percentages mean???

If I understand correctly, these are new contracts with an initial repayment rate of under 2%. Here it is clearly visible that as interest rates decrease, the initial repayment rate increases. Nevertheless, every 10th loan in 2016 still had an initial repayment rate of under 2%. However, this is probably not related to the overall financing, but to the individual loan components.

So I took a look at the page.

I'm not sure to what extent this data is useful. Small loans probably mostly have higher repayment rates. It also depends on whether the data only refers to the number of loan contracts or if the volume of the contracts is also weighted. And then the data is also rather inaccurately specified. I assume, for example, that the 2% repayers include everything between 1.5% and 2.49%. Then 24% of the contracts would have an initial repayment of less than 1.5%.

I don't even remember how high our initial repayment is, but definitely above 2%, though under 3%. The branch manager of the Volksbank thought that was high. We could also have managed significantly more, but we set our desired rate somewhat less than our previous cold rent.

Edit: See chart: distribution by repayment rate