Can you explain that to me in more detail?
For the banks, the ratio of loan to mortgage lending value is relevant for determining the conditions (and refinancing) = loan-to-value ratio. Since KFW funds are always subordinate and the bank does not have to purchase this liquidity, these loans are not taken into account for determining the conditions.
Example: Loan request EUR 210,000 - mortgage lending value of the house EUR 265,000 - interest rate for mortgage loan (60% loan-to-value): 2% - interest rate at 80% loan-to-value: 2.5% - KfW interest rate 1.0%
Option 1: Loan from the bank of EUR 210,000 = 2.5% for the entire loan
Option 2: Loan EUR 50,000 KfW = 1.0% + bank loan EUR 160,000 = 2.0% = average interest rate significantly lower