Financing comparison - Now it's getting serious

We have now also received two offers. But first, a brief introduction about us.

She (38, teacher), I (42, senior controller), child (8, full-time child). Net household income: €6,100 + child benefit + 13th salary + target agreement + overtime. The salaries already include €240 company pension scheme + teacher pension. We currently save between €2,500 - €2,750 monthly with a warm rent of €551.

We own a 1,462 sqm plot of land with an outstanding debt of €37,000 at ING (house bank; fixed interest until 12-2022, standard land value: €100 / sqm). Equity is €50,000. Intended to be used for kitchen and unforeseen expenses.

Price:
1. House 141 sqm + 13 sqm covered terrace including 12 kWp photovoltaic system + controlled residential ventilation and a few other extras €399,000
2. Outdoor facilities: €25,000
3. Incidental costs: €45,000
4. Conversion from forest to building plot including tree felling: €25,000
Total: €494,000

Offer 1: MBS, happy to take second priority on the land register. Land is recognized as equity. 1.33% with 15 years fixed interest.

Offer 2: Commerzbank, forward loan for the land €35,000 with 2.17% and 1 year fixed interest. Main loan: €494,000, 1.13% interest, 15 years fixed interest.

For both, the repayment for the main loan is about €1,350 + the option of 5% special repayments. We want to repay the land loan quickly and then add the €250 to the main loan.

With Commerzbank, we save about €14,000 in interest over 15 years. I asked MBS if they could adjust their offer. Do you think there is still room for negotiation?

Hi, didn't you contact your house bank (ing)?

Hi, didn't you ask your house bank (ing)?

Yes. Through Interhyp. But computers calculate there and the offer was around 1.40 or 1.50%.

As far as I know, there is basically no individual offer at ING. Either you fit the mold or you don't. However, the conditions are always the same with the same parameters. You will not have paid off the property until the start of the repayment of the main loan, will you? What happens to it with the MBS?

As far as I know, ING does not offer individual deals. Either you fit the criteria or you don't. The conditions are identical given the same parameters. But you won't have paid off the land until the main loan repayment starts, will you? What happens to it with the MBS?

Nothing with the MBS. And the plan is to pay it off anyway. We will get at least €28k through KfW and BAFA old programs. So it should work out well. Otherwise, the standard land value will increase significantly. Currently at €100, market price €300-400. That's why the land will be refinanced through ING or MBS if it is not paid off.

I was surprised because you are planning a forward loan in the CB and nothing in the MBS. The repayment should be the same for both options up to full disbursement, so I would also ensure the same conditions there.