Rough Financing - Questions About It

Good morning everyone,

for a house construction/house purchase, I have the following questions regarding feasibility:

If I build a KfW 50/70 house, you get a favorable loan of 50,000,- between 1.40%-1.60%. WHEN exactly is this paid out? When the house is built or when it has already been ordered?

I have a building savings contract that matures around 2020. Until then, I need a loan, which I would simply repay in 2020. So basically a loan without repayment. What interest rate can I roughly expect here? The same as currently applies for regular loans?

Best regards Tobi

Hello,

the KfW loans can remain interest-only for up to 6 years, meaning you would only pay the interest. To my knowledge, such a KfW loan can also be repaid at any time, so you can actually redeem the loan with the building savings contract.

The KfW loan must be applied for before the start of construction and approved by the KfW bank, and is drawn down like a normal bank loan.