Opinion on financing proposal / current conditions

Hello everyone,

we (m 36 and f 35 with a child from December) are currently planning financing for house construction with the following framework data:

Plot including incidental costs: €118,000
House (approx. 160 m²): €258,000
House ancillary costs: €50,000

Equity for financing: €90,000
Equity as a cushion: €20,000

Loan volume: €336,000

Income m: approx. €2,900 net
Income f: approx. €1,800 net

Income f will of course decrease, initially 1 year of parental leave pay, then probably several years part-time (50-66%).

Childcare costs will be fully covered by the employer.

We currently pay €700/€850 rent (cold/warm) and currently have approx. €1,800 left per month.

Our plan is to set up financing that requires a monthly payment of max. €1,400. We would like to have the loan paid off after approx. 25 years and fix the interest rate for 20 years. We do not plan special repayments, but these could be used to pay off the loan earlier.

We had a conversation with a financing advisor who offered us a combination of KFW 153 over €50,000 at 0.75% and a bank annuity loan over €286,000 at 2.75%. This would result in a payment of €1,400 without special repayments over a term of approx. 29 years.
When I asked why 2.75% seemed quite high to me, he said that there are some providers that offer a cheaper interest rate (at best 2.11%) but do not offer a KfW loan. That could be considered, but he did not want to advise me against a KfW loan. That surprised me a bit. In the end, I do not care whether I include the Kfw, I just want the cheapest overall interest rate.
Now I am a bit uncertain about the quality of the financing advisor (although he is one of the two large independent nationwide ones in Germany).

Now to my questions:

1. What do you generally think of our financing plans regarding loan volume and payment considerations?

2. Who has current conditions for an annuity loan with a 20-year fixed interest rate and roughly our equity/debt ratio and would like to share them here?


Regards
Supergrover

How are you building? KfW70? KfW55?

I mean KfW has adjusted the interest rates... at least for KfW-EH 70... right now we are at 1.41% for 50,000 EUR over 10 years.

And, what fixed interest period does the offer include? Over the full 29 years? Because that also costs an interest surcharge.

Do new KfW conditions not apply from 1.4.?

We are building Kfw55 and to my knowledge the 0.75% still applies for a 10-year fixed interest period. The fixed interest period for the bank loan was 20 years. We would not want to fix it for longer either.

Hello,

it may be that this is the current interest rate for 20 years. Have you asked the common intermediaries ( Dr. Klein / Interhyp) etc etc

you can also get a free offer there. You have a "standard financing". Comparing is worth it!