Is the financing offer good?

Building savings loans are critical in that they have rather poor interest rates (well - nowadays so does overnight money) and have closing fees. If you put the money into repayment, you do better. You have to calculate it precisely - but generally, I would always opt for a direct loan - unless you are speculating on extremely long terms and a low initial burden - here, [Bausparverträge] are still about 0.2% cheaper for now. But always keep in mind: if you have to refinance with a normal loan in 15 years and interest rates rise, depending on the repayment, the amount is quite different (and without closing fees and higher repayment (money you would otherwise have to save in the contract) even more different) - so always calculate exactly which fixed interest period is ideal for you and your income.

And the latter is rarely managed anymore through equity given the now incredibly high land and construction prices...

Strange, just last week I received a binding offer for a €200,000 loan with total costs of €250,000 at 1.9% effective interest over 25 years fixed interest rate. The loan-to-value ratio is therefore about 80%, the monthly rate was €850 with €0 residual debt at the end of the fixed interest period.

Since interest rates are currently really more or less at the absolute limit (anything under 2% is more than great), it definitely makes sense now to fix the interest rate over a very long period. Planning a follow-up financing today will very likely lead to additional costs at some point, because interest rates cannot get any better. Or should the banks pay you for taking the loan? So there isn’t much room left to go down, hopefully another 0.5% is possible but then somewhere the limit is simply reached.

Again: I am not saying you should lock in 25 years. I am saying you should finance in such a way that you do not need a follow-up financing. If you fix the rate for 15 years but manage to pay off a large part of the remaining debt during that time (inheritance, savings, blah blah), that certainly makes sense as well. If in the end, a few euros are missing (20-30k) - regardless of the interest rate - it can be paid off quickly.

Just last week I received a binding offer for a €200,000 loan with total costs of €250,000 at an effective rate of 1.9% with a 25-year fixed interest period. The loan-to-value ratio is therefore about 80%,

Just for the sake of completeness: The total costs are certainly higher; the loan-to-value ratio is not calculated from the "project budget" but from the property value (somewhat simplified). Additional (ancillary) costs must be added to the €250,000, which apparently can also be paid from equity here. Nevertheless, this is of course a great offer with a 25-year (!!!) fixed interest period!

Binding offer with completed mortgage lending value assessment?