Financing Land & House - 2 Different Loans

Sounds all very good, thanks for the info!

However, I still have the following question:

What exactly could be the reasons that another bank would NOT repay the loan with, for example, a remaining term of 1/2 year (fixed interest rate back then 1 year) against a prepayment penalty of 0.5%? Sure, there is no guarantee, but if I take out a loan of 400k at a bank, why shouldn't they then repay the remaining amount?

Sure, I would then pay the interest for, for example, half a year if I repay the loan half a year earlier.

But it could well be that I come out cheaper. I still have to pay for the notary, land register, etc. with the variable loan.

What exactly could be the reasons that another bank does NOT repay the loan with, for example, a remaining term of 1/2 year (fixed interest rate at that time 1 year) against a prepayment penalty of 0.5%?

Quite simple: contracts have to be fulfilled. Maybe they want 1% prepayment penalty? Difficult back office? No desire to deal with annoying customers? We've never done that before?

Sure, there is no guarantee, but if I take out a loan of 400k from a bank, why shouldn’t they repay the remaining amount?

That goes without saying. It might just take 1/2 year longer than you like. As said, there are many "maybe" and "maybe not". And to be on the absolutely safe side, there are variable loans.

Quite simple: contracts must be fulfilled. Maybe you also want 1% prepayment penalty? Difficult back office? No desire for annoying customers? We've never done that before?

That goes without saying. It may just take half a year longer than you'd like.

As I said, there are many "maybes" and "maybe nots." And to be on the completely safe side, there are variable loans

How is the prepayment penalty calculated?
This is how the prepayment penalty is calculated for an installment loan... The prepayment penalty for a consumer loan terminated early may be at most 1 percent of the outstanding balance. If the remaining term is less than one year, the amount may even be no more than 0.5 percent of the outstanding balance.

Is that not correct? Is it allowed to charge 1% or is 0.5% "prescribed"?

I know exactly what you mean. We just want to be fully aware of which costs could definitely arise and at what amount in order to weigh what we ultimately do.

How is the prepayment penalty calculated?

As long as it is not about a sale, there are no regulations. The bank can either say no or set an arbitrary price (but usually it is calculated similarly to a sale). You should read my post #22, I have already written about it there.

Isn't that incorrect? Can you also charge 1% or is 0.5% "prescribed"?

Yep, I have written several times that there is no right to repayment of the loan or a fixed price. See above or post #22

We just want to be exactly aware of which costs could definitely come our way and in what amount so we can weigh what to ultimately do.

Once again. YOU CANNOT DO THAT Don’t keep hung up on 500€. Either take a variable rate and pay a bit more for flexibility or fixed interest with the risk that it may possibly become more expensive – but that is not a must. It doesn’t help to ask over and over again. You already have ALL the answers. Make use of them.

Once again, for everyone’s information:

We have now been to 5 different banks and only one regional bank offered us a variable loan on their own at a very reasonable interest rate of 0.98%.

3 other banks did not offer us this loan at all and implied in a roundabout way that they see no benefit in it and don’t do it, only at an interest rate that would not be remotely reasonable (4% or so).

1 other bank would do it, but the interest rate is at 2.2%.

I can understand that somehow... So we will probably take the variable loan with the one bank at 0.98%. We are also generally satisfied with the conditions for the house that will come about 3/4 year later, so we will probably also do the remaining financing there.