How much equity is used when purchasing land?

For us, it was relatively uncomplicated. Our equity capital stated in the financing application was slightly higher than the purchase price of the land. So we initially paid for the land + incidental purchase costs out of the equity capital. This satisfied the bank regarding the use of the equity capital.

All the documents that came afterward could be submitted to the bank. The only thing we had to keep in mind was a minimum disbursement amount of €25,000. So we first collected invoices until we had at least €25,000 together. It was also possible to withdraw a bit more than the invoices submitted, as hardware store invoices did not need to be submitted. We paid all of this out of the real equity capital and reserves and then reclaimed the money from the bank.

In the beginning, we took our time with the loan disbursement, as this allowed us to avoid interest payments. But once the commitment interest started, we had the bank disburse as much as possible, since the commitment interest was higher than the loan interest. This difference in interest rates was particularly significant with the KfW loan.

It will now run similarly with us, we will purchase the property using equity and then still have some (but only a small amount of) equity set aside.

However, as you wrote , we could no longer advance payments on the invoices until date X, when the commitment interest and loan interest meet. Hm.. I also think that the construction companies want the invoice faster than if, for example, you can collect 25,000 euros for 2 weeks and then get the money from the bank for it. If necessary, in our case, you would have to get the money from the bank in advance and pay interest on the loan for it. A fault was detected on the vehicle. Whether the cause is not understandable, a fault remains a fault. o_O