Financing comparison, which conditions

We are now in the final phase of our planning and have finally received the building permit.

Before we sign our financing contract definitively, I would like a small comparison.
Construction financing amount: €550,000
Equity: €40,000
Additional security: Another property.

10 years -> 0.36%
Effective annual interest rate (Price Indication Ordinance).

20 years -> 0.92%
Effective annual interest rate (Price Indication Ordinance).

We might wait a bit longer, as there are rumors regarding the KFD front.
A brief excerpt from a newspaper report.

At least: private customers and medium-sized businesses could soon not only be burdened by negative interest rates but also benefit from them. The state KFW (Kreditanstalt für Wiederaufbau) intends to grant subsidized loans with negative interest rates starting in 2020. This means: those who borrow money would receive more than they pay for the loan.

Looking forward to exchanging ideas with you.

At least: Private customers and medium-sized companies could soon not only be burdened by negative interest rates but also benefit from them. The state-owned KfW (Kreditanstalt für Wiederaufbau) plans to grant promotional loans with negative interest rates starting in 2020. This means: Those who borrow money would receive more than they pay for the loan.

Well, initially the KfW passes the negative base rates on to the banks. It is still unclear whether the negative interest rate will actually reach the customer.

The conditions are great and you don’t know the future. You don’t postpone your project because of a decimal point.

I also find the conditions great, with 1A disbursement.

With the KfW, the banks always pass it on 1:1, sometimes some banks even pass it on at a discount (i.e. instead of 0.75% it is currently at 0.50%).

That means if KfW does it at -0.50%, it remains that way.

This is because currently the banks pay 0.00% for the money from KfW, so the 0.75% remains with the banks as a "margin" since they handle all the processing, risk, etc.

Rate / repayment? Otherwise: Do it. Top conditions. We closed a similar amount in the summer with a second property as backup at 1.04% for 20 years. It has gotten even better since then.

i.e. if KfW makes it -0.50%, it will remain so.

But that is not what KfW means. They pass on the negative base rate, but the bank’s margin is added on top of that. So if the bank gets a margin of 0.75%, the negative base rate would have to be at least -0.75% for the customers to get at least 0%.