Procedure for repayment/change of financing

Hello everyone,

Last year we purchased a building plot and financed it with a loan with a variable interest rate.
Now we want to replace this loan with a new one that also includes the construction costs.

Now the question arises about the exact procedure:
-I inform Bank A that we want to repay the financing
-Bank A sends us the amount to be paid on a fixed date and other documents (deed?)
-Notary appointment for the transfer of the land charge
-Payment from Bank B to Bank A

Am I understanding this correctly?

Thanks in advance for the help

Hello,

you take new money at Bank B + transfer debt from A to B. Normally, you sign release authorizations for B and they handle it in your name. The land charge is assigned in trust and the loan is repaid.

Hello, you take new money from Bank B + transfer the debt from A to B. Normally, you sign release authorizations for B and they handle that in your name. The land charge is assigned in trust and the loan is redeemed

That sounds better than feared. Thank you!

That sounds better than I feared. Thank you!

But the new bank will explain that to you exactly. Is your current bank too expensive?

Not too expensive, but we got a significantly better offer from another bank and the first loan was only for bridging. We are building in the Berlin metropolitan area, where plots are sometimes gone faster than you can blink.

Present the new offer from the old bank. Maybe they will match it and you will save the change of the mortgage.