Financing land purchase - house construction later

We have also come across the option of a variable loan. However, the lack of planning or calculability does cause some unease.

How does it work if we want to start building the house BEFORE fully paying off the variable loan? Can the remaining debt from this loan then simply be transferred to the loan for the house construction?

The variable interest rate or the corresponding loan has no fixed term. Therefore, it can be repaid at any time. This means: if you want to build in 2 years, you can easily repay the loan with the new one. And it is not THAT unpredictable currently.. Interest rates are low, inflation is expected to be higher than before, and endless money is being pumped into the markets. My speculation is that the interest rate will remain low in the coming years.

That is a good point, Joedreck. And just for our understanding: If Bank A grants us a loan with a variable loan and we want to repay it after 3 years because the house construction is about to begin and we want to include the remaining financing amount from the land purchase in the annuity loan, will Bank B then pay Bank A the outstanding amount? Do you have any tips or recommendations for specific providers that offer variable loans?

Yes, that's exactly how it works. I would approach your local bank and consult an intermediary for that. They know their stuff. It's all quite common.

That's exactly how we did it. The Sparkasse didn't even want to have a mortgage for 80K, so that you are completely flexible in terms of time.

Good morning, you can also choose a 5-year fixed interest rate & the highest possible repayment. If you want to build in 4 years, for example, then do a new financing for construction & follow-up financing of the small expiring loan.

That should give you more options