Financing comparison - Now it's getting serious

So you didn’t have any free equity either, just a form of value increase of the property? When was that? That ING is already in first priority could have made the difference. Is it the same for you, ?

But your fixed interest rate for the land expires earlier, right? Just do five years right away, as long as the MBS agrees, and then you can go looking with the full amount for land and house construction in one rank. Finance the few years discrepancy on the land variably.

Yes, the fixed interest rate on the land expires in December 2022. We also want to pay for the land completely with the grants (KFW 55, BAFA). That’s the plan, but we’ll see if it works out.

So you also didn’t have any free equity but only a form of value increase of the property? When was that? That ING is already in first rank might have been the deciding factor. Is it like that for you too, ?

Yes, the property is financed through ING. It is our house bank. The offer from ING was always very poor with financial advisors.

So you didn’t have any free equity either, just a form of appreciation of the property? When was that? That ING is already in the first rank could have been the deciding factor. Was it the same for you, ?

Exactly. Only some equity for demolition and incidental construction costs. Almost paid-off property, which has significantly increased in value. However, it was not fully taken into account in terms of size, which was not explainable to us at the time. It was arranged through an intermediary. It was in January 2021. Only in terms of timing ING was quite slow.

I am considering the option with 5 years MBS. By then, the property will be paid off and at least €100,000 of the loan as well.

At ING, anything that is not standard has no chance. Only computers rule there.

You probably didn’t read my post at all? I had the consultation directly with ING over the phone, appointment arranged via the ING homepage. The interest offer came within a week, the interest rate was significantly better than through an intermediary. The financing was not standard, but a leasehold with 5% equity capital. Financing would also have been possible completely without equity capital, but of course then with a worse interest rate. That’s why we contributed the 5% (the remaining equity capital is unfortunately currently tied up illiquid with us). Because we took a little time to respond due to job overload, the ING employee even called back to ask if we still had questions and if the offer was suitable.

So nothing standard, nothing just computers.

My advice: Call ING, get an appointment for a consultation (by phone or via video call). This is your house bank, and they have first rank on the property. So the path is clear.

Good luck!