Questions about loans, equity, and CAP loans

Hello,

I’m still browsing through the threads a bit, so please forgive me if I missed something.

We are financing on three pillars: KFW, annuity loan, and a CAP loan which we will repay 100% by the end of the year. The background is a condominium abroad that can only be sold at the end of 2017 (currently rented). The CAP loan of 50,000 euros will later be our actual equity, which we can fully repay by the end of the year. The interest for this period is manageable since the house we have been looking for a long time is now being offered.

The equity is therefore lower, but it is not a problem for the bank.

1. Question:
When do I have to present the equity or what happens with it? Do I transfer it to the bank (Deutsche Bank), and they then pay all the bills including incidental costs, or do I pay part of the incidental costs myself (for example the property transfer tax), and the bank pays the rest from that point on? Or is that negotiable?

2. Question:
What is the sequence? We are supposed to submit an offer now; do I already need the financing confirmation for that? I know what the bank gives me, of course non-binding. What is the best way to proceed now?

3. Question:
From when do you start repaying the mortgage? The process itself takes up to 3 months. Is the first installment due upon move-in? In the documents from DB it says "free for 3 months."

Questions and more questions, I hope you understand...

When do I have to present the equity capital or what happens with it? Do I transfer it to the bank (Deutsche Bank) and then they pay all invoices including incidental costs, or do I pay a part of the incidental costs (e.g. the property transfer tax) from the amount and the bank pays the rest from that point on? Or is that negotiated?

At the latest, the loan agreement states when the equity capital must be provided before which part. But your DB advisor will help you find out the specifics. The invoice and transfer receipt are sufficient to prove the consumption of the equity capital. You don't have to give this to the DB all at once.

What is the sequence? We are supposed to submit an offer now, do I already need the financing confirmation for that?

Depends on the seller. Usually not; but some want a confirmation.

From when do you start paying off the mortgage? The process itself takes up to 3 months. Is the first installment due when moving in? The documents from DB say "free for 3 months".

Repayment starts after full disbursement; interest on withdrawn amounts already from the following month. Ask around; 6 months except for Kfw should be possible without extra charge. Otherwise, you might have to pay commitment interest for the undrawn loans from month 3 onwards.

3rd question:
When do you start paying off the mortgage? The process itself takes up to 3 months. Is the first installment due upon moving in? In the DB documents, it says "free for 3 months."

Questions upon questions, I hope you understand...

Morning, so the repayment-free period can usually be set free of charge to 6 months at a normal bank. With the KfW, 1 year is automatically repayment-free. This means during that time you only pay interest as a monthly installment (currently not that much).

However, this should not be confused with the provision interest-free period.