House construction financing: Do not fully draw/use the loan

The following (admittedly unlikely) case would interest me:

A house construction was planned with equity and debt financing to a total amount X. Initially, (as usual) the equity is used, and as soon as it is exhausted, the loan is drawn down gradually. Let's assume that one planned with 500,000 debt financing and in the end (e.g. because one initially got good conditions for shell construction or obtained cheap materials) 50,000 remain unused.

How is this actually handled? Is it okay for the banks if the realized loan amount is then "only" e.g. 450,000 euros? Or what happens then?

Simply directly into the special repayment.

Simply directly into the special repayment.

Well, on the one hand, you don't get the money paid out without proof of use. On the other hand, the special repayment is usually not that high. In addition, from the bank's point of view, other parameters might shift because of it.

No, that is of course not OK for the bank because you cause them a loss. How this is handled, you have to clarify with the bank. You may possibly only have to pay a prepayment penalty for the undrawn portion. We have also paid off the remaining balance in full directly. We had allowed ourselves a 10% special repayment exactly for this case, and that would be exactly sufficient in your example as well.

What exactly is possible is stated in your loan agreement. It must be regulated there whether, for example, you can freely repay part of it, make a special repayment directly with it, or something similar. Otherwise, it may well be that if you do not take part of the loan, a non-utilization fee must be paid to the bank.

Only the loan agreement can provide exact details, or you may be able to call up the remaining amount later and freely dispose of it. There are various scenarios, so BigFoot's answer is not generally valid.

is more theoretical since there is usually something pending.

Nevertheless, in this case speak with the bank:

* you need less if you have built a "cheaper" house and the bank may possibly want to adjust the conditions here. The loan-to-value ratio changes, after all
* Additionally, a so-called non-acceptance compensation could be incurred by you. The bank has also "purchased" the money and wants to recover the costs from you plus lost interest income.

So I would try to spend the money, exterior facilities etc