HOUSE CONSTRUCTION - Total Costs and Interest Rate

Hello, I have a question about the total costs of building a house. Usually, you get lower interest rates if you finance only 60% or 80%. But what exactly counts towards the total costs? If we pay for connections, carport, garden, and painting work ourselves, does that still count towards the 100%, i.e. can these costs be considered as equity?

Hello redfairy,

correct, the amount of the "Beleihungsauslauf" - i.e. the financed amount in relation to the market value - determines the interest rate.

The trades you mentioned - even if you carry them out yourself - are included in the total costs and increase the market value of your property (if you did not carry them out yourself but had a craftsman do them, the equivalent value would also be present).

The incidental costs of the property purchase (brokerage commission, real estate transfer tax, notary & court costs) do not increase the market value and must be excluded from the market value determination.

Best regards

M. Thiemann