Interest surcharge for second-ranking loans

Hello everyone,

This is a condominium for rent as a capital investment. Purchase price approx. 400K€. Completion at the end of 2021.
So far, only a KFW 151/152 loan of 120K€ has been taken out on the apartment. Originally, no more was planned.
For another project, however, the financing is now more expensive than planned, hence the consideration to refinance here and use the equity in the other property.
The idea would be another 120K€ to stay below 60% financing amount. Rather low repayment and high residual debt, term 15 or 20 years.

Are interest rates below 1% realistic here, or is that not feasible for a second-rank loan?

How is the lending on the condominium? At the beginning of last year, I had a total of 80% lending on the condominium, but 50% of that at the first rank, 50% at the second rank (and there about your amount) with an interest rate of 0.9%. So I would say yes. But that was just before the first lockdown. It can of course be different now. I don't know how it was affected that they could have 50% of the total amount in the first rank.

Are interest rates below 1% realistic here, or is that not feasible for a second-rank loan?

Ask the bank that arranged the KfW loan for you. Another bank will have little interest since you will probably not stay in the real estate loan with a total of €240k – assuming €400k market value = €360k lending value = 67% run-off.

How is the financing for the condominium?

So far only the €120K KfW loan. The rest is equity.

Hello , do you think it would be more interesting for the bank to utilize the 67%? So more than €120K would of course also be possible. The €400K is already the loan value as a basis for the KfW loan. The purchase price was also a bit higher. More financing on this property would certainly also be an option. For the other project, I need a total of about €400K, of which again €120K will go as a KfW with repayment subsidy on this property.

The best option is the bank that is currently handling [kfw].