House construction still realistic despite rising interest rates / construction costs?

For me, the question arises whether Allianz even wants to decide positively in July. In case of doubt, there are still some other applications there with better conditions for the insurance – with monthly rising interest rates, you can of course keep playing this game forever, and Allianz also has to get its liquidity to the man, but with possibly 1-2 percent interest difference, I could well imagine that Allianz thinks it over three times. Regarding the broker: how long has she been in business? Or has she been in it long enough to estimate Allianz's approach given the sharply rising interest rates? In previous years, three months with an interest difference of 0.00-0.25 were certainly not decision-relevant. Fingers crossed for you :) Btw: I would also get further offers. You could at least start in mid-June so that, in case of doubt, you have all financing options relatively simultaneously on the table. In the best case, Allianz confirms, you sign the loan application(s), and you reject the other banks.

For me, the question is whether Allianz even wants to make a positive decision in July. If in doubt, there are still several other applications there with better conditions for the insurance – with monthly rising interest rates, you can of course keep playing this game forever and Allianz also has to get its liquidity to customers, but with possibly 1-2 percent interest difference, I could well imagine that Allianz would think it over three times. Regarding the intermediary: how long has she been in business? Or has she been around long enough to assess Allianz’s approach with the sharply rising interest rates? In previous years, three months with an interest rate difference of 0.00-0.25 was certainly not decision-relevant. Fingers are crossed for you :) Btw: I would also get further offers. You could at least start in mid-June so that, if in doubt, all financing options are relatively on the table at the same time. In the best case, Allianz confirms, you sign the loan application(s), and decline the other banks.

According to Interhyp, the interest rate for our framework conditions (loan-to-value <70%) today is 2.68% on inquiry. Thus, following your argumentation, the interest difference of 0.18% is in the range of 0 - 0.25% and therefore not decision-relevant. Furthermore, I can follow Interhyp’s argumentation: It would mean a massive loss of credibility for Allianz with its partners (e.g., Interhyp) if, after the self-caused long processing time, it were to distribute rejections without giving valid reasons why it acts against its own communicated offers. Nevertheless, multiple irons in the fire don’t hurt, we agree with you there and will follow the advice to obtain comparative offers. Many thanks once again for the lively participation, different perspectives, and tips for our further approach! In our view, a construction diary always makes sense, so why not include the collective knowledge? We will definitely keep you informed about the further course of events!

In advance: As I said, I’m keeping my fingers crossed that it works out ☺

Please keep in mind that interest rates could still rise significantly until July/loan decision, and also that the loan-to-value ratio refers to the loan value. This is different from your construction and land costs. How much it differs depends on the respective appraiser, the bank’s internal policies, and various legal requirements.

I find your argument about credibility quite valid. Allianz is a very large financer that works with various banks/KVGs/brokers etc. The question is what hurts the insurance company more. It also has to be refinancable in the long term, should interest rates rise significantly. On the other hand, liquidity pressure currently weighs heavily on almost all institutional capital investors. But these are, of course, just my little, wild speculations.

I hope you get the financing. I especially think it’s great that you’re obtaining additional financing just in case. Good luck and have fun building ☺ & please let me know how it turned out.

Since we were in a similar situation and blindly bet on just one horse, here are my 2 cents:

We requested a quote from an insurer seven weeks ago, processing time six weeks. After reading the posts here, I was in total panic because the interest rate had temporarily risen by almost 0.7 percentage points for us as well. Last Friday the contract arrived, exactly the terms as submitted seven weeks ago. Maybe not recommended to imitate, I just wanted to show that the big insurers don’t always rip you off and that you also stick to "bad" offers.

When we applied for our loan at Allianz, I also had my reservations. But everything went through here as well. According to the broker, it wouldn't have been that easy to pursue two tracks at the same time once a KFW loan is involved. At least 1.5 years ago, it was still the case that the credit institution would immediately apply for the KfW portion after an internal approval. The KfW loan would then be blocked for other banks for 6 months. In other words, in the end I apply additionally at the second-best interest rate, but may only get it if the bank simply processes faster than my favorite. I don’t know if that has changed?

For me, the question is whether Allianz even wants to decide positively in July. In case of doubt, there are still some other applications there with better terms for the insurance – with monthly rising interest rates, you can of course play that game forever and Allianz also has to bring its liquidity to the market, but with possibly 1-2 percent interest difference, I could well imagine that Allianz will think it over three times.
Regarding the broker: how long has she been in business? Or has she been around long enough to assess Allianz’s approach with the strongly rising interest rates? The previous years, three months with an interest rate difference of 0.00-0.25 was certainly not decision-relevant.

For all those who have been waiting with us in suspense: We received the loan documents from Allianz today. The conditions are as already described in the opening post:

[*]Loan amount: 445,000
[*]Type of loan (e.g. annuity loan, bullet loan, etc.): annuity loan
[*]Interest rate (p.a. nominal, otherwise effective): 2.46% nominal, 2.50% effective
[*]Fixed interest period: 30 years
[*]Outstanding debt at the end of the fixed interest period: €69,000
[*]Fictive total term until full repayment: 32.6 years
[*]Initial repayment rate: 2.00%
[*]Monthly installment: €1,650
[*]Special repayments possible? (Specify amount) Yes, 3%/year (€13,350/year)
[*]Repayment rate change possible? (Conditions such as number, repayment rate range to be specified) 2x free of charge, 2-4% repayment