Pledge existing property to increase equity?

I would directly inquire with the financing banks and explain the situation. Basically, it does not make a big difference for your capital. The property has a certain value and belongs to you. Within the framework of the mortgage, you sign a kind of blank check that allows the bank to basically seize everything under you in case of payment arrears. Therefore, what should be relevant for their conditions is only that there is an unencumbered property in your possession. How much they credit you depends on their assessment of what it is worth. Pledging the property would not really increase your equity, as your debts would increase to the same extent. Under the conditions, the bank usually evaluates the overall picture, so not only your bank balances and assets but also your liabilities.

Yes, exactly. In my case, however, it was actually a separate loan ([Eigenkapitalbeschaffung]), not additional collateral. But it was the same bank for both loans. However, the terms were completely different (interest rate, duration, repayment conditions, interest-free commitment period, etc. etc.).

Yes, exactly. But for me it was actually a separate loan (equity procurement), not additional collateral. However, it was the same bank for both loans. But the conditions were completely different (interest rate, term, repayment conditions, interest-free commitment period, etc. etc.).

I also did not intend to list it only as additional collateral. The bank's approach is clear.

: Yes, that's exactly what I mean. If on the one hand I take out a loan that is X00K higher at, for example, 3.9%, and on the other hand can mortgage the land at, for example, 3.5% or 3.6%, there is a certain difference. In addition, in this case the equity for the financing itself increases or the mortgage rate for the other property becomes proportionally lower, which means you also get better 0.x% conditions, don't you?

Could be, for me it was more about enabling the entire project. So without that, I simply couldn’t have built it. That’s why I haven’t given any thought to whether the large loan was cheaper because of it...

I would directly inquire with the financing banks and explain the situation. Basically, it doesn't make much difference for your capital. The property has a certain value and belongs to you. As part of the land charge, you sign a kind of free pass anyway, allowing the bank to basically seize everything under you in case of payment arrears. Therefore, for their conditions, it should only be relevant that there is an unencumbered property in your possession.

... and will exist permanently as long as the bank loan exists. Therefore "pledge," in other words, the bank prevents the sale of the property.

It might be, for me it was more about enabling the entire project. So without that, I simply wouldn’t have been able to build. That’s why I didn’t really think about whether the big loan was cheaper because of it...

I understand ... Exactly that could also be the case for us. I don’t know if it’s enough for the bank to prove ownership of a plot of land. I could sell it after the approval.