Fundamental questions about financing

First of all, hello to everyone.

I have been reading the forum for a while. Now I have a few basic questions about financing.

1. Is the remaining debt recalculated monthly or annually?
If it is monthly, is that normally the case with all banks?

Our bank is selling plots in a new development area in our town.
According to various mortgage brokers such as DTW or Dr. Klein, the interest rate is around 1.8% with the following parameters:

Total costs: 520k€
Property value: 480k€
Credit requirement: 295k€
Loan-to-value ratio: < 70%
Fixed interest period: 20 years
Repayment rate: 3.5%

The offering bank sells the plot only on the condition that I finance everything there. A sale of the plot to me with my own equity was rejected.

The bank offered me a loan with an effective interest rate of 2.6%.
Is it normal for the difference between mortgage brokers and local banks to be that large?
What negotiating options do I have to reduce the interest rate?

I probably won’t have many options in the current tight seller’s market.

I am grateful for all comments.

The offer is almost cheeky, obviously they want to earn something extra instead of raising the purchase price. Or a commission is being charged.

You won't get far by negotiating. I only see two options if it is to be the property: a) as high a special repayment option as possible and then use it fully every year; b) short fixed interest period and then cancel after it expires.

I assume that the bank wants to make a lot of profit. The property will probably be sold in any case given the current market situation. The purchase price of the property is plus broker commission. I would like to build here, but I have doubts. a) A special repayment is agreed upon, but it will not be fully utilizable. b) Of course, I could conclude an interest fixation period of 10 years, with the probable risk that interest rates will be higher than 2.6% in 10 years.

No one can completely take away the interest rate risk from you, of course, and a refinancing also causes additional costs (land charge transfer).

In 10 years, however, you will have a loan-to-value ratio of <60% and get the best terms. I was also thinking more of 5 years; by then, the interest rate risk "should" be manageable. Otherwise, you hardly have any real alternatives. Although paying off 5% annually also soon builds up your equity.

With nearly 70% loan-to-value ratio, I almost get the best conditions, just not with this bank and the property ([Heimatort]). I don’t think I will get an offer for 5 years, because the bank can already assume that I won’t refinance with them then. Now the interest rates are so low that everyone desperately wants to make a profit.

The interest rate in the conditions is already outrageous. Option 3 would probably be to keep looking :-(