Financing Offer Evaluation - Ideas for Further Variants?

Hello everyone,

after having asked a rather vague question here some time ago, much is now clearer and the conditions have changed a bit again. Therefore, I kindly ask for an evaluation of our financing offer and answers to the following questions. If there are any other ideas on how we can sensibly finance our construction project, please feel free to share them.

Construction costs including everything: €750k (two-family house)

Plot worth €270k (paid)
Other available equity: €220k; of which a maximum of €150k is to be used
Fixed income per month at least €6k

Offer we have:

2x KFW 153: €240k, 0.75%, 30 years term, two years interest-only, €36k repayment grant
Annuity loan between €360k and €510k (corresponding to €150k to €0 equity usage), 0.51%, 20 years interest fixation, 2.2 to 4% repayment, 5% prepayment per year possible.

1. Is this a good offer?
2. How much equity would you use?
3. What repayment rate would you choose?

Best regards Wesergold

If the interest rate is independent of the equity investment, I would not use any equity. You practically get the money for free; the bank hardly earns anything from it anymore (money exchange). A 3% repayment is sufficient. The equity can be better invested.

Will you reveal which bank made you the offer? Until just now, I thought that my offered 0.74% over 15 years with an 80% loan-to-value ratio was already very good.

The offer is from HVB

The question is whether you can still sleep well with 750k€ debt and whether you want to commit for 20/30 years. You can only get out of the fixed interest rate after 10 years or in case of sale. But the offer is great. In the case of a 2-family house, separate financing for personal use and rented out. Depending on how the equity is currently invested and how bold you are, you may not be able to invest additional equity. Ask the tax advisor what is better.

KfW 153 has a term of up to 30 years, but the interest rate of 0.75% applies only for 10 years, right?