Financing offer for 120% financing

Currently, my wife and I want to buy an apartment, which we are getting significantly below market value and without additional broker fees.

Say goodbye to the idea that you got a bargain. See HilfeHilfe. Moreover, at this level of financing, the interest rate is almost irrelevant. 0.10% better for the bank loan means €5 per month. That is negligible, and I would not bother frantically looking around for the last decimal point because of that.

Here is a 120% financing that I find halfway okay. It's not a large amount and theoretically, the income would be there.

But you are talking about a different project. Is it a house?
The theoretical market is very theoretical, after all. You just have to be careful that it doesn't backfire on you and that you actually get this value in a necessary sale. On top of that come capital gains tax, prepayment penalties, etc. Is the property rentable? Without cash reserves, any vacancy or renovation really hurts.

Maybe you can tell us something about your future plans?

In addition, speculation tax,

No issue for own use.

HilfeHilfe wanted to say and he is right with that, that the bank sets the purchase price as 100%, unless it is a family sale or other plausible reasons for a reduced purchase price.

Nevertheless, it can be reassuring – whether the property is offered at a discount for whatever reasons or apparently worth more – to approach the matter with 120%, meaning without equity, although I cannot understand the 120% if no real estate agent is involved.

I think 110k€ is not much for a 120% financing. But for the bank financing 20% over the purchase price, I find the interest rate already quite normal! What does say? Could that be possible?

EDIT: Ah, something is already there... had to reveal it again

I think 110k€ is not much for a 120% financing. But for the bank financing 20% above the purchase price, I find the interest rate already quite normal! What does say? Could that be?

Zaba, that is why I asked about the bank, but unfortunately no answer came.

I suspect it will be a Sparkasse, possibly with a pre-financing loan. Possibly also Deutsche Bank or Volksbank.

I consider the interest rate very good, I would not have such a complete solution immediately available for financing over 100% (where 100% of modernization costs may also be included), only with a so-called subordinated loan from Consors (Bank from Essen), DSL Bank or Hanseatic Bank.

It would be nice if the bank is named to us.