Financing Plan 2021 / 2022 - Opinions / Improvements

Hello everyone,

I would like to get your opinions on the financing offer we received yesterday. There might be important aspects that could help us further. If additional information is needed, I will add it later.

We are M32, W29, M0.

We have a financing amount of 550,000 euros. This amount is divided into four components.

1st component (annuity loan)
Loan amount: 281,000 euros
Fixed interest period: 30 years
Effective interest rate: 1.56 %
Repayment rate: 2 %
Installment: 831.29 euros
Special repayment: 0 %
Interest-free provision period: 12 months
Remaining debt: 75,390 euros
Loan term: 37 years

2nd component (annuity loan) KFW
Loan amount: 120,000 euros
Fixed interest period: 10 years
Effective interest rate: 0.76 %
Repayment rate: 3.64
Installment: 440.00
Repayment-free period: 5 years
Special repayment: 0 %
Interest-free provision period: 12 months
Remaining debt: 87,746 euros
Loan term: 30 years

3rd component (annuity loan)
Loan amount: 101,000 euros
Fixed interest period: 10 years
Effective interest rate: 2.40 %
Repayment rate: 2 %
Installment: 367.81 euros
Special repayment: 5 %
Interest-free provision period: 3 months
Remaining debt: 79,290 euros
Loan term: 33 years

4th component (annuity loan)
Loan amount: 48,000 euros
Fixed interest period: 5 years
Effective interest rate: 2.60 %
Repayment rate: 5 %
Installment: 302.80 euros
Special repayment: 5 %
Interest-free provision period: 3 months
Remaining debt: 36,339 euros
Loan term: 16 years

Why is the interest rate of Baustein 3 and 4 so bad? A low fixed interest period should result in a better interest rate. In my opinion, there is at least 1 Baustein too many included. Additionally, I find a fixed interest period of 5 years too short.

Why is the interest rate of component 3 and 4 so bad? A low fixed interest rate period should result in a better interest rate. In my opinion, there is at least one component too many included. In addition, I find a fixed interest rate period of 5 years too short.

This is due to the loan-to-value ratio (component 3 - 80-100%, component 4 - over 100%). We have the last component included in order to possibly adjust it to component 1 (free land charges) from component 1 after 5 years.

This is due to the loan-to-value ratio (component 3 - 80-100%, component 4 - over 100%).
We included the last component in order to possibly adjust it to component 1 (free land charges) after 5 years from component 1.

Then I suggest building smaller (cheaper). (Without knowing what exactly is behind this).

Components 3+4 are a disaster and the repayment for 1 is too low.

Certainly, no one here would accept this. But, we don’t know the rest – how these dubious figures came about.

What kind of fragmenting of the loan amount is this?
Why so many components?

How much do you earn?
How much equity do you have?
Total costs?
Without this information, no assessment can be given to you.

What kind of fragmentation of the loan amount is this? Why so many components? How much do you earn? How much equity do you have? Total costs? Without this information, no assessment can be given to you.

Currently earning 5,500 euros net until 10/2022, thereafter about 7,000 euros net. We use equity for ancillary purchase costs, kitchen, and furniture. And some buffer still remains. Land 123,000 euros Construction costs 427,000 euros