How to best plan financing?

Hello ddanny, we are currently facing the same question whether to pay for the land "cash" or finance it. It looks like for us that we will finance the land and have the rest of the used loan available to us interest-free for 12 months. We hope that the whole thing will be settled within these months since the ECB will certainly raise the key interest rate. Of course, no one can predict how the interest rates will develop further, but I expect rising interest rates for the next few years, which certainly will not reach a level of 10%, but could well move towards six or seven (my opinion). Also, I cannot quite agree with ille1975 regarding the bank consultations. We had great advisory talks where I did not have the feeling that they wanted to push something on me or advise me poorly. You just shouldn’t go into such talks completely without prior knowledge in order to take some wind out of the "seller’s" sails.

When you draw down the partial loan for your land, interest is charged month by month. The part not drawn is interest-free for a while!

Based on your thread, where you explain what equity and building savings contract you have, I believe you had great advisory talks. At least from the bank’s point of view. Assuming a 1% commission, you probably paid around EUR 1,900 for your building savings contracts. They are useless for building today or in the near future because 1. the amount is small or 2. they are not yet eligible for allocation. You can at best finance them temporarily, at 3 point something, very expensive, because a regular financing is still possible with a 3 before the comma, creditworthiness permitting. You have to continue to save into them to reach allocation maturity. Your savings contributions are just idling and being eaten up by inflation anyway. With your desired rate, you won’t make it front or back, neither in the savings phase nor in the repayment phase. Flexibility is not there anyway. No special repayments, no change of repayment. Just because "BAU" (building) is in the SAVINGS CONTRACT, doesn’t mean it’s sensible. Building savings contracts are strictly "calculated-through products." Why do building societies often agree to be subordinated in the land register? Certainly not because they are so cheap!

Well informed ille1975, that's how I like it! We have cashed in one building savings contract, we keep the one that is [Zuteilungsreifen] as an "iron reserve" and only our advance payments go into the big one, it will be exactly [10 years Zuteilungsreif] and will then repay part or all of our loan. We will now take out a loan that also has a 3 in front of the comma and does not exceed our monthly desired rate. Prepayment option included!