Financing plan for new construction on existing property

I forward the KfW application via Alte Leipziger to KfW

Does it then go into second position?

With a loan-to-value ratio of 80%, Alte Leipziger does that for me. It doesn't matter what the bank earns from it; they receive a so-called commitment fee. What matters is that the financing concept is designed in the best possible way, and this can be wonderfully arranged with AL in relation to the KfW loan with the "single out" in such constellations and initial situations.

In other words, you have no idea how many a bank earns from it after deducting the risk costs.

Put simply: above 80%, they don't do it because they don't earn anything.

Below 80%, the risk costs are so low that you make a profit.

And then the main credit bank can also do it, because they also have no significant additional risk. Because what applies as an argument for Bank A also applies to Bank B.

How this flows into the structuring of conditions then varies from bank to bank.

I have never questioned that. But it’s not just the risk costs; depending on the bank, some also goes into or to the sales department. Of course, I know this amount from every bank.

Why do you want to know that?

What matters is what comes out in the end. If such a construct is not associated with new risks for the client, he understands it, and slightly lowers the blended interest rate, then that's a fine thing.