Financing commitment at the current time

  • Erstellt am 2022-06-11 10:10:00
S

SoL

2022-06-12 05:19:40
  • #1
When we were still planning the construction, we had planned a similar structure: Loan A for construction financing with a fixed interest rate for 15 years Loan B for bridge financing with a variable term, repaid as soon as money from the house sale comes in It was calculated and offered to us by our house bank. The financing advisor would have obtained the same structure from Ing-Diba, but we had already stopped by then. I had previously thought that this was common practice.
 
A

aero2016

2022-06-12 06:43:50
  • #2
Do you have an unencumbered mortgage on your current house? Maybe the bank will agree to the financing if they can take a lien there until the sale.

Under no circumstances would I, as a parent, sell a house at the moment if I do not yet have the new one secured.
 
W

Wirsechs

2022-06-12 07:34:49
  • #3
Our setup is a bit complicated, so it’s understandable that the bank is hesitant. Here are the numbers now so we can get a well-founded assessment from you: House construction + land purchase including all ancillary costs: 800k Debt load old house: 320k Market value old house: 420k Min. equity after house sale: 100k Additional cash assets: 50k Financing amount: 700k 1 Income + child benefit: 6.4k Monthly burden new house loan: 3k Monthly expenses according to household book: 2.5k According to FiBe a realistic undertaking – what do you think?
 
T

TmMike_2

2022-06-12 07:38:24
  • #4
700k with a single earner will easily cost you 3.5%.
That would be a bank repayment of 3200€ (2% repayment)

Isn't the old house enough to just renovate, maybe extend?
Six months ago, the situation looked much more relaxed.
Somehow we have all forgotten what borrowing money should actually cost.

At what conditions is the current loan being financed?
 
C

Caudaequina

2022-06-12 07:39:28
  • #5


With these numbers I understand the bank. Phew, 700k maybe more if the old house sells for less and effectively for the bank 700k plus 320k minus 50k equity and only 1 income for 6! people.

Sorry, that is too much with 3k plus at least 400 incidental costs (not including maintenance reserve) for 6.4k (with child benefit)…
 
W

Wirsechs

2022-06-12 07:41:53
  • #6
Currently it is 3.11 The old house remodeling would be an option, but only a last resort, because due to the room layout it is always a compromise.
 

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