Financing €350K, interest fixation 15 years, nominal interest rate 1.66%

Hello everyone,

We have now been to several banks regarding the financing of our new build. Here are some key figures:

Equity 200K€
Land cost 70 K€
New build cost, brick, turnkey including all earthworks and incidental building costs 425K€
+ some furniture, kitchen, let's say 40 K€

Financing: 350 K€

Monthly net household income €5,500 + special payments like holiday and Christmas bonuses, not considered here.

Best offer was annuity loan 1.66 nominal interest, effective 1.69% fixed for 15 years, repayment 3.5%, special repayments possible at any time, repayment rate adjustable. Equity does not have to be used up first. Interest-free provisioning period 18 months, afterwards 3% p.a.
We want to be finished after max. 20 years by means of special repayments.

We visited 3 banks or one broker.

Do you consider this a reasonable offer?

Regards

yes, sounds good. For a full repayment over 20 years, haven’t you ever let yourself be offered one?

yeah sounds good. Haven't you ever considered a 20-year full repayment?

Yes, but the interest rate was effectively 2.3% and in the end that was expensive.
We could also have split it with a bank
10 years KFW 1.65% nominal interest
10 years bank itself 1.89%
20 years building savings 2.4

but we didn't want that

Sounds great to me if the house costs are calculated properly and with a buffer. How much special repayment is possible? Especially this allows room for a large buffer. We made a special repayment of €15,000 right after the house was completed because we didn't need the full buffer. But it always let us sleep well. Oh yes: I can't really judge the interest rate because our financing is 2 years old. Back then we were at 1.32% for 15 years.

Sounds great to me if the house costs are calculated properly and with a buffer. How much special repayment is possible? That especially leaves room for a large buffer. We immediately made a special repayment of €15,000 right after the completion of the house because we didn't fully need the buffer. But it always helped us sleep well.

Oh yes: I can't really judge the interest rate because our financing is 2 years old. Back then, we were at 1.32% for 15 years.

The house costs are calculated with a buffer :) That should also be sufficient. If not, we still have a few funds in reserve, from which we can sell parts, they are doing really well right now.

We can make special repayments of €17,000 per year, which we also considered okay.

I think the condition could still be a little better, but you definitely can't complain! Just try to get offered only 12 months of [bereitstellungsfreie Zeit]. It could be that you kicked out too many providers with the 18 months.