Is primary school enrollment normal?

My bank also brought this up, but there were no further negotiations.
Why?
The house I am renovating is a three-family house and is also occupied by the family. If I take the higher interest rate and manage without a mortgage on the apartment, then the bank, in the event of my insolvency, would hold the other apartments responsible.
That means I pay more interest and other family members could potentially be involuntarily affected. However, the apartments are independently registered and also correspondingly divided/in possession.
But I will definitely not do it that way.
Honestly, I am still not quite sure how that could work... If I imagine buying an apartment somewhere in a house (also a three-family house) and can no longer pay, then the apartments of the other owners cannot be used to cover the loan I can no longer pay.
So that honestly confuses me a bit.

If I register a mortgage on the apartment, this case cannot happen and I get a better interest rate.
Now I am wondering if I could take out a loan with two banks. For example, with Bank 1 and Bank 2, each with €30,000, in order to avoid a mortgage.
A higher interest rate with this amount is, at least for me, less dramatic.

I don't understand what you want to say. A [Grundschuld] does not protect you from personal liability in Germany.

A [Grundschuld] only reduces the risk (and duration) of enforcement, which in turn results in a lower interest rate. Additionally, the terms can be significantly longer, if relevant, than is usually the case with other consumer loans (including [Modernisierungsdarlehen]).

The fact is: If you stop paying, you’re in trouble. Whether with or without a [Grundschuld].

Hello,

where is your problem now? You want 60k, the bank gives you a very low loan interest rate and wants additional collateral in the form of a [Grundschuld]. There are also processes at the bank and the calculation is different when it comes to loans / construction financing.

There are also special modernization loans without [Grundschuld].
However, at 3.33%. Personally, it wouldn't be worth it to me.

And by the way, with 60k YOU have no market power. No bank is waiting for you and rolling out the red carpet to grant you a 60k loan without any collateral.

The house I am renovating is a three-family house and is also occupied by the family. If I take advantage of the higher interest rate and manage without a mortgage on the apartment, then the bank, in the event of my insolvency, would hold the other apartments liable. That means I pay more interest and other family members could potentially be unfairly affected. However, the apartments are independently registered and also correspondingly divided/owned. But I will definitely not do it that way. To be honest, I am still not quite clear on how this could work...

That is not possible either.

Provided the other apartment owners do not guarantee (why should they?), and your apartment is independently registered as condominium ownership under the WEG, the other apartment owners do not "share" liability as joint debtors. No legal basis, no liability, no familial liability.

In short: misinformation or misunderstanding.

Besides: Loan amount = mortgage amount.
From the property follows only the obligation to tolerate foreclosure in the event of enforcement.