Financing outdoor facilities, carport, equipment

Hello,

in spring the construction of our single-family house will start.

The costs of the single-family house (400,000) plus incidental construction costs will be fully covered by equity. After completion, the KFW 55 funding (grant model) will be provided.

Since our equity for paying for the house and incidental construction costs will be completely used up, we need a loan of about 50,000 for carport, outdoor facilities, and furnishing.

The money should be available in autumn.

Is it advisable, due to rising interest rates, to take out the loan now and agree to have it provided only in half a year?

How soon should the contract be concluded? Is it to be expected that interest rates will rise significantly in the coming days/weeks?

After some research, conditions for a construction loan are more favorable than for a loan with free use or, for example, for the financing of furniture.

Is it possible, in our case, despite having equity for the house construction itself, to get a construction loan and thereby actually pay for, among other things, the furnishing?

One should probably take the loan now immediately as a construction (mortgage) loan and then cover the expenses from carport to kitchen with equity.

After some research, the conditions for a construction loan are more favorable than for a loan with free use or, for example, for financing furniture.

That is generally wrong.

The construction financing has a slightly lower nominal interest rate (although strong small loan surcharges are applied to €50,000), but you have to order a land charge, which already costs nearly €600. Then the construction financing tends to run significantly longer than a consumer loan. So you also pay interest for many years.

Question: How quickly can you repay the €50,000? You can calculate with that. The consumer loan can also be well below 2% – then, over a few years, that is a very small interest cost and you save the €50,000 land charge costs.

Question: How quickly can you repay the T€ 50?

Within 5 years.

You can calculate with that then. The consumer loan can also be significantly below 2%

I have only found things from 2.4% upwards.

You have a real luxury problem ;) With a debt-free house, you will get a cheap loan for the outdoor facilities anywhere. Especially since this also increases the lending value. Most banks should also agree to a quick full repayment loan. The main problem in your case is probably that with 50k, you are simply doing too much effort compared to the interest paid. For a mortgage loan, the property has to be appraised, the paperwork is the same,... as if you were taking out 500k. At the very beginning of my property search, when I wanted 80k for an apartment, the loan officer told me I should rather take 100k and invest the rest; that would be 1-2 tenths cheaper ;)

I would also (as kbt writes) take out a construction loan and pay the 50k from the equity. With your amount of equity and the low fixed interest period / term, you should get great conditions for the real estate loan.