House construction with building savings plan

Hello,

we would like to build a terraced house, the following situation:

We will soon buy the plot of land and can presumably pay it off completely within 2.5 years. We have saved some money and will take out a loan for the rest.

After that, we want to start building the house. The bank advises us to increase a currently 90,000 euro building savings contract with approximately 20,000 euros saved.

The increase is to be from 90 to then 150,000 euros. Since we will not be able to meet the usual minimum savings amount in the next three years, a choice allocation of 33% is to take place.

That would mean that we would have paid for the land, saved 50,000 euros, and would take out a 100,000 euro loan. The biggest advantage should be the interest rate security, i.e. being able to get the 100,000 with 3.60% interest.

It all sounds pretty nice at first. We can probably live with the usually high monthly burden that comes with building savings contracts.

What do you think?
Thank you very much for your answers in advance!

so honestly, I would never conclude a building savings contract for more than 30% of the construction costs incl. land costs. In today’s interest rate situation, I would finance the land through loans as far as possible and see if my bank offers a forward loan at attractive conditions. In any case, discuss the financing with another bank as well.