Financing comparison - Now it's getting serious

House costs 550TE (of which approx. 50TE are incidental costs) + 150TE renovation. Equity would be 150TE. How does the bank calculate?

The standard is that the bank generally assumes 50% of the renovation costs. Many things are actually not renovation, but at most cosmetic measures (floor coverings, for example).
So 500 + 50% of 150 = 575 minus 10% safety discount (58) = mortgage lending value 517
Thus, with a 500TE loan based on the mortgage lending value, it is almost a full financing. You can always get good interest rates today, but very good ones due to a good loan-to-value ratio do not apply in your specific case.

I cover the incidental costs from equity, so only 100TE left. I need a 700TE loan.

If equity is actually only 50, then you get a rate for a 135% loan-to-value.

Sorry, the <90% financing is still very far away (says a real estate financier ;))

Just for your understanding. Incidental costs are not value-increasing. So they are excluded from the valuation of the property. Regarding the renovation, it's of course that you also tear out functioning things that you paid for in the purchase price. So after gutting (or whatever you remove - tiles, bathrooms, doors, etc.) the house is worth maybe only 450. Then you add your new installations (bathrooms, floors, heating, etc.) and push the value of the house back up to the 575 I mentioned above.

The standard is that the bank generally applies 50% of the renovation costs. Many things are actually not renovations, but at best cosmetic measures (such as floor coverings). So 500 + 50% of 150 = 575 less 10% safety discount (58) = lending value 517. Thus, for a €500K loan based on the lending value, this is approximately full financing. You can always get good interest rates today, but very good ones due to a good loan-to-value ratio are not available in your specific case. If equity is actually only 50, then you get terms for a 135% loan-to-value. Sorry, the <90% financing is still a long way off (says a real estate financier ;)) Just for your understanding. Ancillary costs are not value-increasing. So they are excluded from the property valuation. With renovation, it is of course the case that you also tear out functioning things that you have paid for in the purchase price. So after gutting (or whatever you remove - tiles, bathrooms, doors, etc.) the house may only have a value of about 450. Then you come with your new installations (bathrooms, floors, heating, etc.) and push the value of the house back up to my above-mentioned 575.

Oh, the 50% of renovation costs are fixed. Does the bank negotiate on this if it is really necessary renovations? And is the safety discount always like that? I have labeled equity as €150K, the €50K was for ancillary costs. Equity without ancillary costs = €100K. For the house I need €650K and then I only receive "575K", so the difference must be equity?

Oh, so the 50% of the renovation costs are fixed. Does the bank negotiate on that if the renovations are really necessary? And is the safety deduction always like that as well?

It always depends on which bank you are talking to (internet banks are more difficult than branch banks) and what you are doing. It is a flat rate from which, of course, deviations can be made depending on the circumstances.

I need 650K for the house and then I only get 575K, does the delta have to be equity?

That depends on you (your creditworthiness), the property, and the bank. Maybe you will also get 650 or 700. Maybe only 500. At the moment, no one can tell you (we are not banks and have basically zero information about you, the house, and the renovation).
But in any case, you will not get the top conditions.

It always depends on which bank you talk to (internet banks are more difficult than branch banks) and what you are doing. It is a generalization, from which, of course, deviations can be made depending on the circumstances.

It depends on you (your creditworthiness), the property, and the bank. Maybe you will get 650 or 700. Maybe even only 500. This cannot be told to you at the moment (we are not banks and have virtually no information about you, the house, and the renovation). But in any case, you will not get the top condition.

All good. The information about the discount for renovation and security is enough for me. I am concerned about how much equity I still want/need to save (and in what intensity/time). As it looks (location/market), it’s heading towards 700-800K, so I have to step on the gas.

Only the bank can tell you this on a case-by-case basis, because the determination of the value and thus the loan-to-value ratio can differ from bank to bank in case of doubt. Really inquire with your values and the specific property. Based on the household calculation, we got a first indication beforehand of what they would consider feasible for us.

Additionally, there are some surrounding facts that I would check.
In my opinion, a friend took out a loan with Allianz, where for example a re-mortgaging of the released land charge is not possible, and he also had to pre-finance all his invoices and then received them back from the bank in blocks after processing time. Especially smaller local banks can sometimes be more relaxed regarding payment modalities, even if they want more information in advance, which might also be a point to consider in the context of a renovation; I have also encountered the subsequent injection of equity capital.