Process of Construction Financing - Interest / Repayment

Hello dear community :)

Quick question about the process of a construction loan:

If you choose an annuity loan with one year of repayment-free period, when does this year start? When the loan is fully drawn? Or already from the conclusion of the loan?

Example:
Loan start: June 2017
Loan fully drawn: Dec 2017
Repayment-free years: 1

Does the repayment-free year then start from Dec 17 or already from June 17?

Best regards ;)

Hello,
this should be stated in the contract. Normally, repayment generally only begins after full disbursement and thus theoretically the term of the interest-only year also only starts then. Nevertheless, only the contract or the advisor can give the correct answer.

At KFW, for example, the repayment-free period is counted from the start of the contract, so not only after full disbursement.

But as souly writes... it depends on the contract.

Even though the thread is quite old, I have a question regarding the Kfw.

If the contract was signed in 2017 with two years of repayment-free period, but the money was only drawn down a year later, repayment must still begin as of 2019, correct?

Even though the thread is quite old, I have a follow-up question about Kfw.

So, if the contract was concluded in 2017 with two years of repayment-free period, but the money was only drawn a year later, repayment must still begin as of 2019, correct?

inquire with kfw

Correct for approximately 95% of private funding programs.

1...2...3... years after application.