Financing comparison - Now it's getting serious

It is not a full financing. The land value is €146,200 according to the standard land value.

The standard land value usually does not apply to the entire property. A rule of thumb (as is often noted on land value maps) is 800 sqm of building land and the rest as garden land with 10-20% of the standard land value. Or building land with a maximum plot depth of 30m. Or whatever applies.
Calculation 1: 800 sqm at €100 + 662 sqm at maybe €20 = land value €93,000
Calculation 2 (plot width 20m): 20*30m at €100 + 862 sqm at maybe €20 = land value €77,000


And suddenly you have completely different financing ratios.

The standard land value usually does not apply to the entire property. A rule of thumb (this is also often stated on land value maps) is 800 sqm building land and the rest garden land with 10-20% of the standard land value. Or building land with a maximum plot depth of 30m. Or whatever. Calculation 1: 800 sqm at €100 + 662 sqm at maybe €20 = land value €93,000 Calculation 2 (plot width 20m): 20*30m at €100 + 862 sqm at maybe €20 = land value €77,000

And suddenly you have completely different financing ratios.

But in my opinion this is nonsense. A) The bank only uses the standard land value, market price about 3-4 times higher. So the security is enormous. B) Considering only half as building land is outrageous. Or who sells a 1,462 sqm building plot only pricing 800 sqm as building land?

Of course, nothing can be done about it. I still have the MBS in reserve with 1.33% for 15 years.

only counting half as building land is outrageous. Or who sells a 1,462 sqm building plot only at 800 sqm building land prices?

Usually, not only the bank does this but also the respective appraisal committee - and in "normal" times also the buyer, if he wants to determine the price realistically, because in the end you do not build on the entire plot but use a (here rather large) part as a garden.

Usually, not only the bank does this but also the respective expert committee - and in "normal" times also the buyer, if they want to determine the price realistically, because ultimately you are not building on the entire property but are using a (here rather large) part as a garden.

In normal times. But we live now and not 10 years ago. I just want to say that I do not understand the banks that, who can secure customers (one works in the hospital, another as a teacher = crisis-proof) and pay negative interest for hoarding money, then reject our financing. The MBS as a regional bank (which is familiar with the area) is fighting for us. But for now, we are looking for an interest rate near 1.1%.

However, the bank cannot assume that the current seller's market will last forever, so it plays it safe.

The bank still takes a loan-to-value ratio into account. This means the property would only have an equity portion of 80 TEUR.