Provision interest - loan amount

No, that is not correct. We were able to determine the order of payment ourselves. Why should the MHB have a claim to redeem the loan LAST? Where should such a clause be written down? They couldn't care less whether and how much and where we have other loans running. I am 100% sure about that.

Hello

so when you write:

"That ultimately has nothing to do with the completion of the house or anything like that. It's about drawing down the loan COMPLETELY. Whether the house is finished or not is initially not relevant.

And of course, if I am paying commitment interest at another bank where the amount outstanding is only €50,000, the amount is logically not as high as €280,000 at MHB."

then it probably has something to do with "construction progress" (ok, it does not necessarily have to be the completion of the house!)

because MHB is drawn COMPLETELY, when? When the pre-financing is fully paid out through the house bank (which is probably tied to construction progress)

because otherwise the entire MHB amount could have already flowed = then no commitment interest would be charged here = then there would be no double burden...

I find it quite interesting what kind of constructs people build to save some money... but then if delays or whatever come, the savings are gone, because here, as you can see, you have to pay twice (interest for money drawn at one bank, then at the other the construction period interest because it has not been drawn yet).

so a construction takes time, yes
there can be delays, yes

why don’t you do something else? So we are talking about bridge financing, i.e. you pre-finance the sale of the property because the equity is tied up there.

such a construction takes time. Many banks offer bridge financing really expensive (around 2.75-4.25%) which really costs a lot over a year or longer.

what I did myself (equity tied up in the house, which should be sold after moving in)
I fixed it for 1 year at 1.20%, cheaper than bridge financing (which can be redeemed at any time) but I was bound for 1 year initially (if I had redeemed it after 9 months, I would have had to pay a prepayment penalty for 3 months)
the plan was of course to sell the house after 1 year and redeem the bridge financing.

of course the construction took longer, we are now finishing the outdoor facilities, so 1.5 years have already passed. After 12 months, the bank simply converted the loan to a variable loan, which currently runs at 3%. For a few months this is tolerable, but above all flexible...
BUT not every bank offers such a construct.

That should be stated in the contracts (I work in the group ;-)). If it isn't, it was forgotten. The other contracts really don’t matter to the MHB. But not the building status. Finished object = mortgage bond eligible financing with favorable financing. Unfinished object = expensive unsecured loan. In this respect, the MHB would offer you an interest rate upon immediate disbursement that costs the MHB money. Precisely for that reason, the variant with pre-financing is chosen, so that the disbursement only occurs with (or near) completion.

well then everything is fine...

maybe in the future ask the bank advisor beforehand when you decide on a "construct" where you can save money, but haven’t made a roadmap on how it will work, and what you have to do or how to implement it so that it actually works.