Financing offer okay? - Total cost 275K Euro, equity

Hello, today we received an offer for the financing of our construction project. Total costs approx. 275,000 euros, equity 45,000 euros

Kfw 70 50,000
2.9% nominal
2.93% effective interest
3.96% initial repayment
10 years fixed interest rate
Loan term 20 years
286.01 euros monthly

Kfw Wohneig.pr. 80,000 euros
3.15% nominal
3.19% effective interest
3.86% initial repayment
10 years fixed interest rate
Loan term 20 years
467.63 monthly

Bank loan 95,000 Ing-Diba
3.5% nominal
3.56% effective interest
3.5% repayment
10 years fixed interest rate
554.17 euros monthly

total: 1307.81 euros monthly annuity.

Or:

KfW 70 50,000
2.9% nominal
2.93% effective interest
3.96% initial repayment
10 years fixed interest rate
Loan term 20 years
286.01 euros monthly

Kfw Wohneig.pr. 80,000 euros
3.60% nominal
3.65% effective interest
3.69% initial repayment
15 years fixed interest rate
Loan term 20 years
485.97 monthly

Bank loan 95,000 Ing-Diba
3.90% nominal
3.97% effective interest
3.00% repayment
15 years fixed interest rate
546.25 euros monthly

total: 1318.23,81 euros Mon

Is this a good offer?
Thank you!

Hello Santsches,

yes, those are good conditions.

Best regards

M. Thiemann

Interest rates for KfW are always fixed (public funds!). Ing-Diba is a very recommendable bank. I find the fixed interest period too short given the current interest rate level (surcharges minimal). Also, I would never agree to such a high direct bank repayment, especially not with KfW!!! Or is the property supposed to be fully financed during the short term? You can always set up a savings plan alongside...

The interest rates are acceptable. However, we have had very bad experiences with Ing-Diba. Especially regarding the relatively low equity, I would advise against Ing-Diba, as the bank often withdraws from contracts with penalty clauses. A regional provider would be an alternative.