General questions before bank appointment

Hello forum,

For a construction project of 3 residential units (2 houses) I would very much like to arrange a bank appointment soon.

Since it is planned based on KFW40+, I would like to finance 300,000 euros of the financing sum of 730k via KFW.

Am I correct in assuming that with a long fixed interest period (at least 20 years) the conditions of precisely these KFW loans are not very attractive? However, I would really like to take advantage of the funding of 3x 15k.

What is roughly the most reasonable approach as planning before the bank appointment?

If the KFW topic were not an issue here, my favorite would be a full amortization over 30 years.

With a short fixed interest period and a high residual debt afterwards, I already get stomach aches now. I can hardly imagine that for the coming years.

Certainly the appointment at the bank will be enlightening. However, in order not to approach the matter completely unprepared, I have registered here after having been diligently reading for months.

Many thanks in advance for your feedback / your suggestions.

Best regards Daniel

Go to the repayment calculator from KfW. kfw-formularsammlung.de/TilgungsrechnerINET/xhtml/energieeffizientBauen.do

At first glance, the interest rate of eff. 2.63% is unattractive, but you get the grant that reduces the effective rate during the fixed-interest period to 1.18% (term 30 years / fixed period 20 years). Regardless of the fact that you spend part (or rather all) of the grant on the extra equipment + energy consultant.

Thank you very much for the quick response. Now I also have an understanding of the KFW calculator. I will take another look at it this evening at my leisure and calculate various options. Have a nice day!

The amount of the repayment grant depends on the loan amount. So you have to take the 300,000 to receive the full grant. But in your case, it will be quite substantial, so it can still make sense, even if the loan conditions are not impressive at first.

At my first bank appointment I was also quite nervous. But when they turned it into a sales event with PowerPoint and graphics etc., it started to seem suspicious to me. At the next bank appointments I went in rather emotionless and wished to leave out all the soft skills and just talk about numbers right away. Only after I had several offers could I compare well and then also assess the KfW quite well.

And what conclusion have you come to?