Property available - finance basic inventory?

Stay calm and read properly – I never said you should live with junk furniture or not buy new furniture.

I'll repeat myself once again: It simply doesn't make commercial sense to carry something like that over 20-30 years in a construction loan, and that's not without reason why most banks will not agree to it. And your only disadvantage is quite significant...

And sure, the withdrawals really are annoying – oh man.

But feel free to keep swinging around...

Yes, but you should also read carefully. The equity is tied up in the land. In itself, nothing was done wrong there. If they had taken out the 20-25k for the land, a bank would be in the first lien position and the flexibility of choosing a bank for the main loan would be gone.

The money for the furniture is needed either way. An installment loan is more expensive, and one should have it calculated whether you get the same conditions with 20k more construction financing.

That is also commercial. You calculate the interest burden of the installment loan against the construction financing.

Yeah, of course you have to calculate that - but please with the loan-to-value ratio. And over such a long period...

And these days you can get an installment loan at furniture stores for around that - what I wrote before counts there.

But hey, everyone has to decide for themselves - I’m definitely not on a mission here and just remain polite.

I gladly repeat myself: It simply doesn’t make commercial sense to carry something like that along for 20-30 years in a construction loan

Up to this point, I agree with you.

that is not done without reason by the vast majority of banks.

However, not in this case anymore, if sufficient equity (in whatever form) is available.

The bank does not care whether the loan amount is 300,000 euros with 120,000 euros cash (of which 20,000 for furniture) or 320,000 euros loan and a plot of land worth 120,000 euros, as long as affordability is given.

Yes, ok - sure. However, not many are in the comfortable situation, are they?

I would have concerns about the bank's reaction, but it would be interesting to find out how you ultimately solve it.

Why?

Yeah, of course you have to calculate that – but please with Loan-to-Value ratio. And over such a long period...

And nowadays you can get an installment loan in furniture stores for around that – what I wrote before counts there.

But you, everyone has to decide for themselves – I’m certainly not on a mission and just remain polite.

To repay EUR 20,000 in, for example, 36 months (interest-free) really hurts the wallet. Paying EUR 556 monthly is something you first have to comfortably afford – especially at a time when many other things for the house still have to be paid. I am thinking, for example, of the outdoor facilities, which almost always drag on...

Separated from the OP, who obviously really needs new furniture and, where the property is the only equity, also has to finance it.

We had set aside an amount X of the equity for such expenses. The kitchen needed to be replaced - it was 14 years old and had already been cut up 3 times. The children's room needed a new one. In the end, however, we had to cancel the replacement of the 18-year-old wall unit + table because the amount allocated for this went towards additional construction costs. We did not want to buy with an additional loan.

In general, I agree with the argumentation of in the current discussion. As far as the furniture store offers a 0.00% financing, one should, in my opinion, rather use this than carry around financing over 30 years. Positive side effect: once the furniture is paid off, the monthly burden decreases again a bit and creates room for other things.

However, of course, with a shorter term you have to calculate higher loan installments (for the furniture financing). And these initially have to be managed.