Financing concept - Setting the course for the time problem

Hello everyone,

we have made some progress with our project. The architect is drawing up a draft which we will send to the GUs for calculation. We know our maximum budget as well as the monthly burden from loan and operating costs of the house (approx.)

Now we are facing the following challenge:

The notary appointment for the plot is on 23.06.2025. Unfortunately, we couldn't postpone it any further. The compulsory move-in date is then 23.06.2029. We could almost fully pay it off by then, but that would wipe out all reserves and we don't want that. After all, hopefully there will be parental leave again and thus parental allowance and loss of income for the partner. That needs to be saved in advance.

Banks usually want an approved building application, which can take months.

Therefore, we are facing the decision:

1. Bridging finance with the possibility of full repayment (expensive but flexible)
2. Annuity loan but then tied to the bank for the house?
3. We would very much like the Z20 loan but we earn too much for that or there are still not enough children. Aside from that, it’s a gamble (processing time approx. 1 year?) which of course carries the risk that interest rates might rise above 4% next year (which I assume as a layman)
4. KFW is out due to income limits

We are a bit lost with this situation and are seeking advice in the forum.

We have received three financing concepts, each assuming a bullet loan and repaid through a building savings contract (that was my wish). One directly from Wüstenrot and one through a consultant who relies on Leipziger because they do not want an approved application and offer normal conditions.

We actually don’t really like this anymore, because the residual debt after the fixed interest period is extremely high and the repayments towards retirement are very high due to the bullet loan. That doesn’t really make sense, does it?

We would really appreciate tips, help or advice. So if there are experienced financiers here who can advise neutrally – our call for help.

We consulted a mortgage advisor who works on a commission basis. He understood the discrepancy between purchasing the land and the later construction very well and was able to clearly explain the consequences of different decisions. I admit that we had a much more relaxed financial situation during the purchase and construction, giving us more leeway than you portray it for your situation. Nevertheless, this input was extremely helpful. The mortgage advisor earned his generous commission rightfully.

We had a mortgage advisor who works on a commission basis. He understood the discrepancy between purchasing land and later building very well and was able to clearly explain the consequences of different decisions. I admit that when we bought and built, our financial situation was quite relaxed, giving us more leeway than you describe for your situation. Nevertheless, this input was extremely helpful. The mortgage advisor rightfully earned his hefty commission.

Thank you for the comment, do you have a recommendation? Our advisor is independent and only receives the commission upon closing, not for the consultation itself. How was it for you?

Thank you for the comment, do you have a recommendation? Our advisor is an independent one who only receives the commission upon closing, so not through the consultation itself. How was it with you?

Same concept. We went to Mr. Noters in Kaarst on a friend's recommendation and have already recommended him several times and always received positive feedback. He won't be the only one doing good work, but if it seems feasible for you in terms of travel, an appointment should be worthwhile.

Same concept. On the recommendation of a friend, we went to Mr. Noters in Kaarst and have recommended him several times, always receiving positive feedback. He won’t be the only one delivering good work, but if it seems reachable for you in terms of driving, an appointment is probably worth it.

I am honest, for a reasonable financing and concept where I then have local contacts, I am happy to drive near Düsseldorf. That would be 400 km. Thanks for the tip, I would call the gentleman. Any further tips around Stuttgart?

Any more tips around Stuttgart?

Go to any random advisor from Interhyp & Co.

You don’t have any special circumstances and just need a standard financing.

The banks usually want an approved building permit which can take months.

No, 99.9% of banks don’t need that. At least not for a credit decision. Only as a precondition for disbursement.

P.S. I usually find building savings contracts extremely good. For the advisor, the bank, and the building society. Just not for the customer, who pays for everything...