Home purchase financing including bathroom renovation

Hello,

we are currently planning our house purchase and its financing.
I have a question to which I cannot find an answer.

What happens if you include the renovation of the bathroom in the loan, but later on do not renovate the bathroom after all?
The renovation was considered as an increase in value, and this increase in value has not occurred.
It is not about pretending a value increase, but about the case where you are not quite sure whether to renovate the bathroom or not.

Regards
Sukram

It may be that the bank links part of the loan to the submission of the invoice in order to secure it.

That is known to me or I assumed as much. But what happens if I no longer want to renovate as planned?

I no longer want the money for the renovation, but unfortunately the house does not experience the increase in value that the bank expected.

Then I can't answer that for you. Ideally, you should know what you want already when taking out the loan. Otherwise, you should specifically agree with the bank what happens in the case of non-utilization. The bank won’t lose the loan amount as agreed, so it loses profit. They will probably charge a fee for that. Additionally, the loan-to-value ratio may shift, which could affect the interest rate. Do you perhaps want to use the money for another value-adding measure on the house? Then it might be possible to arrange this with the bank by mutual agreement.

Each bank sets different conditions for the payout.

Most banks no longer blindly pay out the entire amount but expect invoices.
In this respect, you need to ask the bank.

Regards

I would also inquire about such a case. What amount are we talking about?

KP: 150 Bad 40k = Problem

KP 150 Bad 5k = I don't see a problem.

Only the payout is done by the bank