Problems with loan drawdown: priority use of equity?

I am having major problems with my bank regarding the disbursement of my loan.

It is an annuity loan from KFW Bank.

The KfW loan is processed through the DSL Bank and was brokered by the financial broker Easyhyp. Contact with Easyhyp was arranged through Postbank, of which I am a customer.

The loan amount is €100,000 with calculated construction costs (excluding land) of €240,000.

I am building the house myself and therefore have a correspondingly longer construction period (approx. 2 to 2.5 years).
The one-year availability period has already expired.

Now disproportionately high availability interest of 3% is being charged on the loan amount not yet disbursed.

The DSL Bank insists on a priority (i.e. complete first) use of equity capital and refers to the following wording in the loan agreement:

„ ….Disbursement conditions….:
…
1.9. Proof of use of the equity capital specified in the financing …
….“

During the loan brokerage, my advisor informed me that the loan amount would be disbursed proportionally (in equal parts) to the equity capital used.

The supervisor of my advisor at Easyhyp now takes the position that this "proportional disbursement" is a special case and must therefore be explicitly agreed upon.

However, I was not informed of this in any way before signing the loan agreement.
Since the above-cited wording does not exclude a proportional disbursement of the loan amount – which I could or had to assume – I did not notice this point when reviewing the loan agreement.

The financial broker now no longer feels responsible and, in my opinion, has only half-heartedly – if at all – attempted to mediate with the DSL Bank in my interest.
The DSL Bank still insists on the priority use of my equity capital against me.



My question therefore to this forum:

What is the legal situation?
What further course of action would you advise me to avoid the availability interest?


Thank you very much for your help and advice!

McMadigan

The only solution is to talk and hope for goodwill. The procedure should have been fixed in writing beforehand. It is normal for the equity to be provided first and only then the loan funds to be disbursed.

I agree completely.

Do you still have the statement from the intermediary in writing?

Same opinion. Equity first, then loans.

Everything else requires a written agreement or goodwill, especially considering the current (more favorable) interest rate situation.

Another approach at least to reduce costs: try to agree that the loan is paid out into a blocked overnight deposit account at DSL Bank. Then you at least get some interest and only pay the loan interest instead of the BHZ. Disadvantage: repayment may already begin; possibly delay the start of repayment a little here if possible.

And overall, this is a nice example that the "cheapest offer" is not always the best offer.

Another bank would have paid out at least part already if sufficient collateral through the property existed, even if this does not correspond to the agreement. Here you pay fully for it because the low interest rate policy at least partially factors in other sacrifices among customers.

And something else on this: Has the extension of the loan commitment at KfW been applied for? This must definitely be done (usually after one year).

Is it foreseeable how far you will get with your equity? If > 6 months, have it checked whether you can waive the old, so far unused loan and reapply for it in 6 months. This immediately solves the BHZ issue and you have another year of peace from the new connection. But ATTENTION! If conditions have changed. Especially energy saving regulations and the like.

Hm - well, I have never had any problems with that - how is the bank supposed to know how much money is left? Or did you invest your equity capital with the same bank?

How is the bank supposed to know how much money is still there?

When the loan was taken out, he specified a certain amount of equity and now the bank wants to see proof that this money has been used (=spent). This can be, for example, invoices (INAL).