Sign the construction financing contract now or wait?

Hello.

We now have the option to conclude the construction financing at the current interest rates. However, it is possible that the start of construction will be delayed and will only begin in March 2013.

The bank offers that no commitment interest is to be paid for 9 months. From the 10th month onwards, the commitment interest would have to be paid.

Since the construction financing interest rates are currently rather low, we are wondering whether we should

a) wait with the signature and hope that the interest rates do not rise too much

or

b) secure the interest rates and possibly pay the commitment interest?


Should we have the bank calculate how much commitment interest will be incurred?

Has anyone had similar experiences?

Thank you very much for your answers!

Regards

Xam

Further information:

Equity is available (about 1/3 of the total costs (including land, connections, notary, etc.)) and parked in a daily allowance account.

Could of course also use some money for the land already or rather buy with equity?

What is better has to be calculated by someone who knows all the numbers. Furthermore, there are definitely banks that grant 12 months. We did it that way too. We pay everything out of equity and only at the end of the 12 months is it drawn down. Then hopefully our house will also be provided (prefabricated house). A plot of land purchased with equity is as good as cash.... so it makes no difference for the loan, at least that's what our advisor told us.

with us it is 3% per year if I am not mistaken

with us it is, if I'm not mistaken, 3% per year

I have also read something like that.

I believe we are best off negotiating with the banks. It also depends on whether the commitment interest is charged monthly or quarterly and which amount is used for the interest calculation (i.e., beginning or end of the month or beginning or end of the quarter).

Apparently, this cannot be solved in such a general way. I am still grateful for ideas and suggestions.

Regards

Xam

Apart from the banks, you should also meet with independent financing brokers. They got significantly better terms with us. For example, the Sparkasse opposed a 20-year financing and boldly claimed it was not possible and only approved 6 months of interest-free preparation period. The broker asked the same bank again. And well, the interest rate was better, 12 months was no problem, and even 20 years was possible. I wouldn't have believed it if I hadn't seen it. Banks were adamant about pushing building savings contracts.