Offer review financing single-family house 160sqm

Hello everyone,

the start of construction for our building project ([KFW 55 Efficiency House]) in Baden-Württemberg is imminent and we now want to finalize the financing.

Framework conditions:
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Salary:
Net income he (100%): €3,450 (excl. variable bonus)
Net income she (60%): €1,700 (excl. 1.5 salaries vacation and Christmas bonus)
Child benefit (1x): €204
Total net: €5,354
Age: 34 both
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House costs:
Construction costs (incl. garage): €420,000
Additional construction costs (incl. exterior facilities): €70,000
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Equity:
Land: €120,000
Free capital: €80,000
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Financing sum: €410,000


We had an appointment at Interhyp and have the following offers:

Offer 1 Allianz:
Allianz loan amount: €290,000
Allianz effective annual interest rate 20 years: 1.08%
Allianz repayment rate: 3.0%
Allianz additional conditions: special repayment 5%, change repayment rate twice free of charge, free non-utilization up to 10% of the loan amount, interest-free period 12 months.
KFW loan amount: €120,000
KFW effective annual interest rate: 0.68%
Monthly total rate: €1,540

Offer 2 Hypovereinsbank:
HVB loan amount: €290,000
HVB effective annual interest rate 20 years: 0.73%
HVB repayment rate: 3.5%
HVB additional conditions: special repayment 5%, interest-free period 12 months.
KFW loan amount: €120,000
KFW effective annual interest rate: 0.98%
Monthly total rate: €1,595


I have never dealt with HVB before; a quick Google search shows many negative reviews regarding poor service and long processing times. However, the interest rates are naturally extremely attractive. Since we are rather security-conscious, we tend towards Allianz (also because of the better additional conditions). What would you recommend? Are there experiences regarding real estate financing with HVB? Are the above offers reasonable or is it advisable to obtain further offers, e.g. from local banks here (Sparkasse, Volksbank)?

Thank you very much for your help.

We also had an appointment yesterday with IH in the southwest of BW, and among others, Allianz was present, which offers an interest bonus on the KFW 153. I assume that this interest bonus is only granted for the 10-year fixed interest period, after which the interest rates of the follow-up financing apply and the bonus no longer applies. This would need to be included in the long-term consideration.

We have also already been to BBBank, which initially offered us 0.9% for 15 years. Not bad for a branch bank, I would say. However, our loan-to-value was higher because the land must be financed as well.

We will definitely be able to pay off the remaining debt of the KFW loan after 10 years from our own funds, i.e. a follow-up financing can be ruled out.

During our consultation, the individual banks (DKB, ING, Allianz, etc.) were all offering an interest rate of just under 1.0% - 1.1% for 20 years.
HVB was the only bank that was an extreme outlier. That makes me a bit suspicious (regardless of the poor online reviews).
Currently, we are uncertain whether the time investment is worth it to still visit the individual branch banks.

HVB is a bank like any other. Very reputable. In the end, their offer is a bit better.

10 years of requests... Why 20 in the parameters?

It was exactly the same with us. Actually, almost exactly the same financial conditions as with you. HVB calculated an object value that was lower than the construction costs. Then they deducted a 20% buffer. Instead of €430,000, we would have only received €340,000. Conclusion....waste of time. Try it, but at the same time have other offers made and see what the Hypo offers you after the detailed review.