Financing project of a single-family house with hurdles and building blocks

It is possible to ask the question about how the monthly burden looks.

Have you already asked the building society what the 100k (i.e. 30k equity/70k loan) means in terms of monthly rate?
Because then I would apply it.

And please don’t forget this:
Even if you take out a KfW loan = the bank through which it runs is liable to the KfW =
If you take out 450k at the bank + 100k KfW = you have 550k loan
In most banks, the 550k is therefore considered as financing (even if 100k is from the KfW).

But the conditions are shown separately?
So loan at 3,x %
KfW at 2,x %

Should one apply for the KfW loan oneself or what do you mean?

But you also have to repay KFW and home savings contracts and have to include them in the monthly calculation. Or was your plan to pay 2k for the main loan and additionally x for the home savings contract and y for the smaller KfW loan? (The assumption here was initially no, the total burden should be 2k and then it just doesn’t add up)

I’d say we still have a buffer. We have to weigh how much burden the project is worth to us and how we get to our desired rate of 2000 euros. I could also imagine repaying at only 1.5% and for example adding 5000 euros in special repayments. Or significantly increasing the repayment after 5 years. It’s important to us that we don’t get “struck down” so much at the beginning and have a certain buffer.

I'll say this way, we still have a buffer. We have to weigh how much burden the project is worth to us and how we get to our desired rate of 2000 euros. I could also imagine repaying with only 1.5% and, for example, incorporating a 5000 euro special repayment. Or significantly increasing the repayment after 5 years. It's important to us that at the beginning we are not so "overwhelmed" and have a certain buffer.

well, with 1.5% repayment and 10 years fixed interest = with 2000€ rate, you would currently be at a max loan amount of approximately 480,000€. (and that's not even 100% disbursement, but rather around 90%)

and if you still take 100,000€ from the building society = easily 500€ per month KfW? = also 100,000€ = 500€ per month

sure, last December you could have had it for 2% less, with 700,000€ that already makes 1,166€ per month in additional interest...

maybe the interest rates will drop a bit more in the next few weeks (currently 0.50% in the last 2-3 weeks)

But the conditions are shown separately? so loan at 3,x % KFW at 2,x %

Yes, of course. You will get as many separate conditions as you have different loans. KFW 124: 3.11-3.14% and 3.5% - 7.5% repayment - repayment is mandatory after repayment-free years KfW 261: 2.50%-2.79% and 3.5% to 7.5% repayment - repayment is mandatory after repayment-free years BSH loan: You have to inquire about the interest rate, repayment is 6% over a repayment period of 15 years and is mandatory Bank loan 1: interest rate 3.5% for 15 years - you cannot get less than 2% repayment (unless you close somewhere with repayment change and then immediately switch to 1%, but that only works with very few banks Bank loan 2: XXX and so on. ==> in total, however, you will not be able to finance more than €450,000 in all variations if you can only spend €2,000 monthly.

well, with 1.5% repayment and 10 years fixed interest = with a 2,000€ installment you would currently be at a max loan amount of approximately 480,000€. (and that’s not even 100% disbursement, more like 90%) and if you still take 100,000€ from the building society = easily 500€ per month KfW? = also already 100,000€ = 500€ per month sure, in December last year you could have had it for 2% less, with 700,000€ that already means 1,166€ more in interest per month... maybe the interest rates will fall a bit more in the next few weeks (currently 0.50% in the last 2-3 weeks)

There are still 3 levers 1. price negotiation of the property, 2. renovation needs <200TE and 3. negotiation of the interest rates with the lenders We can’t change the current situation, only make the best of it :) I have an appointment with the building society on Monday, let’s see what they offer me or where this is going.

We have to weigh how much burden the project is worth to us and how we can get our desired rate of 2000 euros.

How does the desired rate come about? The 670k external capital (500+200-30 (self-saved in the building savings contract)) would mean an annuity of about ~3.6% with a desired rate of 2000€... You yourself said that you might be able to achieve a mixed interest rate of 3%, with all the components and so on around it, which would mean a starting repayment of 0.6%, and the banks won’t do that, especially since KFW and building savings contracts currently require high repayments.

I mainly see:
* look for a cheaper project
* check if a higher rate would be possible / review household budget
* wait and save more equity / hope for lower interest rates
* possibly move in initially without renovation and postpone that part entirely to later

Regarding the latter: You mentioned that you could imagine possibly increasing the rate (possibly significantly) later or making larger special repayments. Possibly part of the costs could therefore be deferred to later.