House construction on existing land - Financing model

The property is officially worth €130,000, which we basically bring in as equity. KFW is currently not an option for us. The advisor from Interhyp calculated for us that with option 2 we would end up with almost €20,000 in additional costs.

Yes, that could be about right.

I would rather consider taking out a loan with a 10-15 year fixed interest period and a loan with a 25 year fixed interest period.

Currently, I have 5 offers from 5 different banks for a somewhat higher amount with split loans etc.

But an interest rate of 1.5% with a 30-year fixed interest period is very, very good!

0.81% for 15 years is also incredibly good!

I wouldn’t do all the building savings stuff... Find a bank that will finance the whole thing without building savings contracts. In your model 2, that seems to be the case as well.

So model 2 is also very, very attractive. Prepayment option? Flexible changes in repayment rates? What does that look like? Just from the interest rate alone (I can’t judge more due to lack of information), it’s great

Hello, yes Max. Prepayment per year (5 %) - €22,500. We still have to negotiate flexible changes in repayment rates, but that will likely be a no

KFW is currently not an issue for us

Why not? With a granny flat, there would be funding twice. Once the granny flat is set, it’s worth considering.

The advisor from Interhyp calculated for us that with option 2 we would end up with almost €20,000 in additional costs.

Sounds unlikely. If both have the same installments over the same term, where should that come from? But over 30 years, small things can add up. The offers often state the total sum of all payments. Just add it up.

Because I was curious, I quickly did some rough calculations:

Option 1:

Monthly rate in the first 15 years: 1054+538=1592
Completion fee: 3080
Total first 15 years: 1592*12*15+3080= 286560

Monthly rate second part 14y/9m: 1500
Total second part: 1500*14*12+1500*9= 265500

Total option 1: 552060

Option 2:

Monthly rate for 30 years: 1560
Total payments 1560*30*12 =561600

So I come to a difference of about 10,000 EUR.

Since only sparse information is provided and mostly estimated anyway, of course I do not know how accurate this is now.
But you can check yourself.

Putting aside soft facts, like which options are possible in which variant, etc.

Why not simply option 1 without a building savings contract? You only need "447k" then and with a 3.5% repayment rate (installment approx. 1,600) there remains a residual debt of 197.5k after 15 years. Even if the interest rate quintuples (4%) you are still about the same or even cheaper. But who knows what will happen in 15 years. I would not fix it for 30 years.

Please obtain further offers and do not rely on just one consultant!!