Just wanted to say: not everyone has made it to bank clerk. I personally don’t go through the terms and conditions of financial service providers and the relevant sections of the Building Code every day.
Believe me... not every bank clerk knows the special right of termination :-P
Personally, I think financing without the option of special repayments is nonsense.
I didn’t mean that you should finance completely without the option of special repayments. However, if you have two components, you don’t need the option of special repayments in both. Especially not when you have the possibility to repay after 10 years anyway.
Construction financing is not my professional field. Still, I come into contact with it a lot. And a non-representative but still very, very well-known experience among bankers is that out of 10 construction financings that were concluded, maybe 3 or 4 even make use of special repayments and at most one to the planned amount. Just think about what that means.
5% of the entire loan amount... let’s take roughly 300,000.- €. That is 15,000€ per year... over 1,000€ per month. Lucky is he who receives a bonus payment of that amount every year. In most cases, however, it is the case that in the following years one first finishes the "other" things with remaining funds (if any at all). Outdoor facilities, shading, garden shed, etc. Then suddenly the car breaks down or the stork still comes by one more time...
Those who have sustainable money left over could also have chosen a higher repayment rate and perhaps a better interest rate right away.
Special repayment options are all well and good, it works for some but for most rather less.
Therefore... it’s worth considering, for example, having two components and skipping special repayments on one of them. It brought me a 0.1% interest improvement. And if I use all special repayments on the second component... then I am more than happy in the end.