Notary fees, land registry, property purchase

I had already written this some time ago in another thread. We finance the land purchase variably WITHOUT a land register entry (Grundschuld) for the bank. This way, we are independent when it comes to construction financing afterwards. Just ask if this option is also available at your bank.

We finance the land purchase variably WITHOUT a land register entry (mortgage) of the bank.

This is only possible with smaller amounts or excellent creditworthiness. Additionally, the conditions are worse (which doesn't matter).

That only works for smaller amounts or excellent creditworthiness. Additionally, the conditions are also worse (which doesn't really matter).

40k - 1.16% with a one-year fixed interest rate (we will probably adjust this a bit).
Maybe the low interest rate is also due to the high monthly payment (€800). In any case, the offer is very favorable to us. What do you think?

How do you find it?

That is completely fine! But even a significantly higher interest rate would be negligible due to the high repayment rate - which of course also helps a bank to quickly get out of the risk (with T€ 40 still in the consumer credit area).

That is completely fine! But even a significantly higher interest rate would be negligible due to the high repayment rate – which of course also helps a bank to get quickly out of the risk (with €40K still in the consumer credit range).

Well, the lower the interest rate, the less interest you pay after all: We debated for a long time whether to first buy the land with our equity or to fully finance it through the variable loan and simultaneously build more equity through repayment. We decided on the low interest rate option and will include our equity (including the already repaid variable loan) in the construction financing in about a year.
Sounds quite plausible, right?

Well, the lower the interest rate, the less interest you pay

That is true, but due to the high repayment rate, you save yourself a lot of interest over time. But aside from that, whether you have an initial interest portion of €39 per month (or €31 after 10 months) or at, for example, 1.66% interest €55 per month (or €44 after 10 months). That is only a €150 difference for one year. For an investment of several hundred thousand euros, that is nice, but practically negligible. That is why I don’t look at the interest rate for such financing, but at the other conditions.