Use construction financing also for furniture?

Hello,

since things are slowly becoming more concrete, the question arises for me how much of my equity I should invest in the construction financing.
Following that, the question arises: once the house is turnkey and I have put all my equity in, what do I buy the kitchen and the laminate/carpet/living room furniture with?

Therefore the question:

Is it sensible to keep 5000 - 10000 euros of the equity in reserve for such cases?
Or better to put all the equity into the construction financing and then also finance the furnishings from the loan?

Well, I am least worried about the floors as they actually belong to the house and are correspondingly financeable, but the kitchen and furniture etc.?

Kitchen etc. can also be included in the financing.

In the end, it doesn't really matter what you include. The total amount has to be enough anyway in the end. However, 5,000-10,000€ is a bit too little for kitchen, laminate, carpet, living room furniture.

With movable items, it might be a bit more problematic than with things like a fitted kitchen, which provides security and added value for the lender in case of a possible auction.

Also, consider planning a buffer of 10,000-20,000€. It disappears faster than you think – even with good planning.

Thank you very much for the information. What would actually happen with funding that is not used? Suppose 320,000 euros are financed but only 305,000 euros have been spent.

Depends on the bank,

this may be specified in the loan conditions. Similar to additional financing, usually not particularly favorable. Better to plan the loan portions for planned and executable items and cover the buffer through equity.

Most loans can only be drawn down against invoice anyway.

Many banks and savings banks allow approximately 10% of the original amount to be returned free of charge. Beyond that, a processing fee of a few hundred euros is charged once for non-acceptance. Your bank advisor / financing broker has surely informed you about this during the consultation.

We also borrowed a little more than the credit for this case and managed the budget well so that it worked out in the end, the banks transferred the remaining amounts to us without any problems..