Right of withdrawal from the loan

Hello dear forum,

I have taken out a loan with the Sparkasse. When applying, I submitted a cost estimate from my architect. The loan was approved. My architect then began with the tenders. Unfortunately, we had a deviation of no less than 50,000 euros directly at the shell construction stage. Due to this fact and various other problems with my architect, I terminated the architect contract. The construction project is therefore stopped or will no longer be carried out in the form that the bank has.

I have not yet drawn on the loan, so according to the Sparkasse, I can return the loan. Unfortunately, a 1% penalty interest is due here.

The question is, is the bank allowed to do this? I mean, the construction project according to the cost estimate that the bank used as a "basis" for the loan is no longer being implemented. Is there perhaps a special right of termination?

Thank you very much in advance and best regards! Bastian

You are probably not within a cancellation period.

Then the bank is usually allowed to do that. It has given you a financing commitment in the form of the loan. It is not responsible for the fact that you have not used it so far.

The financing commitment is associated with costs for the banks because it has refinanced itself (long-term). If it had to dissolve its own refinancing, it would incur costs itself. In my opinion, the bank could demand a full prepayment penalty (non-acceptance compensation) if you do not take the loan. I still consider the 1% to be very favorable.

Hello lastdrop,

Thank you for the quick response. Unfortunately, I am no longer within the withdrawal period. I would actually like to keep the loan. The problem is just that I will soon have to pay the commitment interest and I am starting everything over with a new architect, so I actually don’t need the money. ;-)

Then, all in all, the BHZ will probably be cheaper than the VFE.

When exactly did you agree on the terms? By now, it might even be more expensive to apply for a new loan. However, the VFE should then be lower.

If push comes to shove, I would have the calculation of the VFE handed over as proof of the costs incurred by the bank.

Hi toxicmolotow,

I took out the loan in October 2016. Interest-free until 31.07.2017.

Going to the construction company with the money and trying again is not an option? After all, you wanted to build at some point.