How can this be? Construction project house + land

Who can explain this to me!

I have two financing offers: total amount in both 340,000

Provider A: 1398.14
Provider B: 1194.70

I am not a financial expert, maybe you can help me

Um, just read the terms in the offers. Interest rate, repayment rate, duration.....

I did mention the repayment rate... term is the same...

Provider A: Average 2.407
Provider B: Average 2.12

I did mention the repayment rate... term is the same...

No, you didn't, if the values you just posted are the repayment rate, then you do have the solution. With loan B you have a much higher remaining debt than with A. (Assuming the interest rate is the same)

Sorry, I'm stuck.

Why should there be a higher outstanding balance with provider B?

Provider B has a lower interest rate at 2.12%

You initially did not specify the interest rate, initial repayment, or the duration of the fixed interest period. But you need these to compare ...

In the two amounts in the first post, I assume these are the installments.