Financing / refinancing of existing loan

Hello everyone,

I currently live in a condominium that still has €80,000 in debt (value approx. €180,000).
I took out the loan in 2015 at Sparkasse (1.88% interest for 15 years).
If I were to sell it now with the remaining debt of €80,000, I would have to pay a prepayment penalty of about €6,000 to Sparkasse.

I would like to renovate a house and then live there myself. I want to sell my condominium afterwards (but only once I have moved into the house).

For the renovation, I need a total of about €300,000 as an additional loan from the bank.

Now my question:
If I were to take out a loan of €400,000 with the same bank, for example, I could pay off the remaining debt of my currently occupied condominium in one go! Would it then be possible that I do not have to pay a prepayment penalty (because I am taking out a new and larger loan agreement with the same bank)?

I hope you understand my concern.

Regards, Benny

Would it then be possible that I do not have to pay a prepayment penalty (since I am taking out a new and higher loan contract with the same bank)?

Only the Sparkasse can tell you that. For example, we would waive the margin damage (our profit from the old loan, since you are taking out a new loan) and charge you the refinancing damage. However, you have absolutely no right to early repayment. That is completely at the sole discretion of the Sparkasse. Talking helps though ;-)

ok then I will clarify that. Just thought maybe someone might have already had experience with something like that...

Good morning, I would contact your house bank and simultaneously a broker. Then simply compare the interest paid over the term and offset the 6,000 Euro [VVE]. One option is also a so-called pledge swap. If you sell the apartment, simply take over the 80k for the new house. That should also be an inexpensive option. Please don’t be misled by the 6k but compare the overall package.