Financing single-family house 175 sqm + double garage

Hello everyone,

we (both 30, still childless) are now shortly before the start of construction (the first installment of over €15,000 to the developer has already been paid) and have now decided on a loan.

About the financial situation:
A loan of €260,000 is needed, equity >€100k is available.
We calculate with a simple salary of €3,000, which is currently over €3,300. We do not include my spouse’s salary in the calculation.

Our loan plan is now ready and provides the following:

€200,000 over 30 years with 1.7% effective annual interest at the Münchener Hypothekenbank
€60,000 over 10 years with 1.4% effective annual interest at the house bank

Repayment rates at the Hyp are €750, at the house bank we pay back €450. This makes a fairly decent total repayment sum of €1,200.

The contract with Münchener Hypothekenbank also offers us the possibility of up to 3 repayment rate changes, 10% special repayment per year, and full repayment after 10 years.
It also has a clause that allows us to reverse special repayments.
The special repayments are practically like a savings account. I can use all available money to repay the loan and thereby reduce my interest payments.
If I ever need a larger sum, I can withdraw an amount starting at €5,000 up to 3 times. Of course, I can only withdraw up to the amount of special repayments previously paid in.

What do you think of the financing?
Is there anything that I might have forgotten to consider?

(What is Göga?)

You are with two different banks. Is the main bank subordinate? With 30 and 10 years fixed interest periods, I would otherwise initially expect a larger interest difference, so the 10-year one should be possible at a lower rate.

Why not everything over 30 years, the conditions are really great for the term? Then the rate is also nice and low.

The 10 years are relatively expensive in comparison.

(What is Göga?)

You have accounts at two different banks. Is the main bank subordinate? With 30 and 10 years interest fixation, I would otherwise expect a bigger interest difference, so the 10-year one should be possible at a cheaper rate.

Munich Hypothekenbank is a partner of R+V. The 30-year interest fixation comes from a special promotion of Hyp, that is actually the interest for 15 years.

Why not everything over 30 years, the conditions are great for the term? Then the installment is also nice and low.

The 10 years are relatively expensive in comparison.

If I do everything with one loan, I don’t get the good loan-to-value ratio.
My advisor said that the main bank temporarily finances the whole thing (I don’t notice anything from it) and at the end of the construction project then calls up the sum from Hyp.

Why do I take the 10-year loan at the main bank and not elsewhere? There is already a land charge registered for my property at the main bank, which saves me about €800. I can live with a few tenths of interest for that.

We are not including the salary of the Göga in the planning.

Please don't write Göga^^

At first glance, I don't see anything problematic with the financing.

Hello Schnizzel,

due to the promotion "Take 30, pay 15", Münchener Hypothekenbank has a processing time of 36 working days. Does your application fall within this period or was it submitted before April 1st?