Financing offer for the construction of a two-family house

Hello everyone,

I am about to build a two-family house, please have a look at my financing:

Total costs €540,000
Equity €150,000

Financing requirement €390,000

Annuity loan

2x KFW 153 loans at €50,000 each, so €100,000

Interest 1.26% effective

Repayment 2.86%

Fixed interest period 10 years

Monthly 2 x €172 = €344

Remaining debt after 10 years 2 x €36,371 = €72,742

Bank loan €290,000

Interest 2.65% effective

Repayment 2.54%

Fixed interest period 20 years

Monthly €1,256

Remaining debt after 20 years €107,810

Alternatively

Interest 2.9% effective

Repayment 2.29%

Fixed interest period 25 years

Monthly €1,256

Remaining debt after 25 years €59,350

12 months no commitment fees

3 times free repayment changes during the fixed interest period

5% special repayment free per year

Did I forget anything?

Since we are expecting our first child in January, we initially chose a low monthly burden.
After maternity leave, we will increase the repayment.

What do you think of this offer?

Regards Tobias

What happens to the second residential unit in the house? Rental?

Exactly, to my parents.

Hello,

you can get the Kfw funds at any bank under identical conditions. The 20-year condition is fine. Have you also inquired with brokers? It could become interesting in your situation. Regarding the rental, it is worth considering splitting the main loan to avoid problems with taxes (V+V). However, your tax advisor should assist with that.

That's what I wanted to get at regarding what HilfeHilfe wrote.

Get tax advice; there are some pitfalls when renting within the family under "special conditions."

Allocate the total costs proportionally between your own apartment and the one to be rented out, and invest the larger portion of the equity in your own home. Distribute the financing according to the possibilities, for example 50 per apartment from KFW funds and the rest through the bank. The higher the interest rate, the more this item should be attributed to the rented unit, and also divide the loan accordingly with the bank.

The tax office and your relaxation factor will thank you together with the tax advisor.

So make sure your next step is definitely to go to the tax advisor.

Thank you so far for your suggestions.

The things you mentioned about the tax office were already known to me.
The appointment with the tax advisor is tomorrow.

Intermediaries could not keep up with the interest rate of 2.65%.

Regards Tobias