Loan for land - variable vs. fixed with special termination right

The reason was that they no longer wanted to deal with the hassle of variable interest rates. Because something is constantly changing and then they have to look for a solution with the customers. The customer wants to make a change, and processing fees etc. are incurred again. This leads to discussions etc. again.

However, she will definitely not agree to a special right of termination in case you build a house. Possibly something like, if you bring three offers from other banks that are 1.x percentage points below their best offer or something like that.

Ok. That is clear. I do not have a concrete contract yet and therefore cannot say. An offer is currently being prepared. It was basically only a verbal proposal.

I also meant when you are building the house. So when you are building the house, you go to them for an offer for an additional loan/loan increase. And at the same time, you inquire with other banks. If you then have many offers from other banks that are significantly cheaper than the first one, you are allowed to cancel, or they have to improve their offer again to come below the threshold. Or just let the first bank take second place directly. By the way, I would also approach other banks in parallel for an offer for a variable loan. If the bank is reluctant now, how will it be during the construction phase or later when you have problems?

Right. That is a good argument. Thank you for the tips.

If you sell the property or give it back to the municipality, you always have a special termination right or the bank terminates you, because there is no longer a property as security. I consider it unprofessional to list something like that separately. I understood the conditions to mean that the land loan will then be converted into a large loan. But the most important question has not yet been answered. Don’t you even have enough equity for the property? Will it be a 90%+ financing?