Financing a single-family home in autumn -> How to deal with rising interest rates?

Hello,

Do you have any tips on how a builder should best respond to the current developments in the financial markets?

We are currently in the planning phase and in a few weeks (end of Feb/beginning of March) the construction contract with the developer is to be signed.
Construction start is planned for early autumn 2022 + total duration 12 months.

Since interest rates are already noticeably rising, I wonder if we should be faster in our processes or if there is still a trick?
Currently, according to the Interhyp calculator, it still comes out at 0.95. However, I doubt whether this value will not rise faster than we like.

Does it make sense to already conclude at an earlier stage and pay commitment fees?
0.2% commitment vs. 0.3 or 0.4 increase?!

Or will it all not be that bad after all.

Thanks & regards

The best thing is for you to simply calculate it yourself :) For the next few weeks, take an increase of 0.2-0.3 percent (assumed value) and compare the money against the [Bereitstellungszinsen]. The question cannot be answered simply because it depends, among other things, on the loan amount. It makes a huge difference whether you have to calculate 0.2% of 100,000 or 500,000.

The best thing is to just calculate it yourself :) For the next few weeks take an increase of 0.2-0.3 percent (assumed value) and compare the money against the commitment interest. The question cannot be answered easily because it depends, among other things, on the loan amount. It makes a huge difference whether you have to calculate 0.2% of 100,000 or 500,000.

Unfortunately, it’s not quite that simple. You cannot apply for a loan for a house that is not yet fully planned. Or if you do and the house turns out differently afterwards, then you have a bigger problem with your bank. GD

If you know how you want to finance, you can actually calculate very easily. With the assumptions that YOU make for yourself.

BRZ 12 months free, afterwards 3%
Loan conclusion now or after six or nine months
Loan interest rate today or after six or nine months

For simplicity, I would calculate half usage for the interest / the BRZ during the construction period (e.g. one year).

Die Frage kann man nicht einfach beantworten weil es unter anderem von der Kreditsumme abhängt.

It does not. In € yes, but in relation to each other no. It does not matter whether I calculate € 100k or € 1 million. Either it is cheaper with BRZ or not.
There are only the factors contract signing date, BRZ amount, interest rate, BRZ-free time.

So if you already know exactly:
- the precise key data, i.e. the areas (living space, volume) from the developer/company/architect
- also the floor plans, side views
- exact numbers of what it will cost
then you can already arrange the financing now.

There are banks that also offer 18 or even 24 months interest-free period for new builds (but they are not necessarily interesting in terms of conditions).

BUT
the house should then also be built as planned later, because if you change something afterwards (10 sqm less living space... for example) then the bank, or rather you, will have a problem.

As a rule, it is not a problem if the living space/volume remains the same in the end, but the floor plan has changed; the bank will not say anything about that.

PS. if the construction contract is only signed in March and no changes are made to the above points, you can already arrange financing now.

We did it so that we completed the financing with exact planning, fully aware that this would eventually cost us [Bereitstellungszinsen]. Meanwhile, the loan has been fully disbursed, and the actual [Bereitstellungszinsen] incurred do not even reach four figures. I clearly prefer the security.