Financing a condominium: full repayment or not?

2021-12-03 09:00:13

But if I only start repaying in 2023, am I then not "wasting" one year of my fixed interest period and the entire repayment/term is pushed back by one year (so 16 years then)? In other words, the installment would have to be higher again than if I started repaying directly 01/22?!?! Do the 15 years fixed interest period apply from signing the loan agreement or only from the start of repayment? I am confused o_O

It depends specifically on the contract. By the way, the fixed interest period can be freely agreed upon – in principle, the fixed interest period applies from the signing of the loan agreement. The full repayment can be easily calculated with the fictitious full disbursement date, repayment from that point onward. Thus, possibly a slightly higher installment. For the calculation of the special termination right, the full disbursement date is used as a basis. From then on 10 years (+ 6 months termination notice). Just as you describe it for yourself. But this has nothing to do with the fixed interest period.

2021-12-03 10:13:42

As far as I know - from the start of the full payout. Please correct me if I am wrong here.

The fixed interest period applies from the signature and is stated as a date in the contract. Only the special termination after 10 years applies from full payout.

2021-12-03 10:23:35

If the apartment is finished in Q3/23, then that is in 2 years, and the 12 months interest-free provision period will not be enough. Additionally, the last installment is usually only paid 6 months after completion. Either extend the period or use the equity at the end, if the bank agrees. Even if a full repayment loan still has debts left after 15 years due to the delayed start of repayment, that is not a problem by then. Either make special repayments in between or after such a long time some savings will have accumulated. What should be avoided is a residual amount of less than €50K that still needs to be financed.

2021-12-03 10:25:01

I just also spoke with the person on the phone, he also confirmed to me that the fixed interest period and the interest-free provision period apply from the signing of the loan. He also told me again that if my full disbursement is only sometime in 2023, this will result in a remaining debt for the fully amortizing loan after 15 years, namely the amount that I did not repay from signing until full disbursement, but I can still pay that off with a prepayment.

2021-12-03 10:29:21

If the apartment is finished in Q3/23, then that is in 2 years, and then the 12 months free of commitment interest are not enough. Additionally, normally the last installment is only paid 6 months after completion. Either extend or use the equity only at the end, if the bank agrees. Even if with the full repayment borrower there are still debts left after 15 years due to the delayed start of the repayment, that is not a problem until then. Either interim special repayments or after such a long time something will have been saved up. What should be avoided is an outstanding amount of less than 50,000€ that still needs to be financed.

Aah oops, a typo sneaked in. The apartment is supposed to be finished 03/2023, not Q3. Can I somehow edit my first post?

What do you think about this new fact? Then the thing with 12 months free of commitment interest looks much better? We currently also assume that the shell should be completed by mid-2022 at the latest, at which point our equity will probably be used up. Payment is according to the broker and builder regulations

2021-12-03 10:48:18

I need to quickly interject regarding the different start dates of the deadlines. Actually, I was aware of it, but it hadn’t fully registered in my consciousness. That basically means that with loans with an interest rate fixed period of <= 10 years, there is always a period where you are no longer bound by the fixed interest rate but still cannot repay with a new loan. How is this handled in practice by the banks? Do they then simply charge a higher interest rate for one to two years if you decline the extension offer?

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Financing a condominium: full repayment or not?

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