Variable loan possible / sensible?

No, I meant that a repayment of only about €700 was planned for the original construction loan, but as I said, I don’t remember anymore. If you assume that you will need at least €500k in credit, then you will have to manage a monthly installment of at least €1600 for 30 years. You should definitely start with that rate for the next 2 years, because how else will the bank believe that this can work? Or else you have to realistically admit to yourselves that it simply won’t work for you.

No, the numbers were different: 1% repayment for a monthly rate of €900 (it would be €1,400k warm, so to speak) – that’s what we planned for the first 2 years while we were still working on outdoor facilities, etc. In our opinion, that would also be manageable. Especially considering that the installments won’t start now but in 1–1.5 years (after completion). Then I’ll be working again, my husband will have had at least one salary increase by then (otherwise he gets two per year). I don’t think it is unrealistic. The 2% repayment would “cost” us €1,300 per month + €500 additional costs for electricity, etc., which is already calculated generously. In the case of the variable loan, we have to pay the monthly amount in this amount from now on, or even more (roughly €900 warm rent + monthly installment €500–600?). Only we have less risk due to the lack of a buffer during the construction period and the possibility of selling the plot if push comes to shove.

Especially when you consider that the installments are not due now but in 1-1.5 years (after completion).

Hello,
don’t be mistaken about that, the installments + repayment usually start depending on the disbursement, and very few construction companies calculate everything only at the very end, actually partial payments are due depending on the construction progress.
At ING, commitment interest is charged after the first year – and that is really expensive.
In addition, significant additional costs arise during the construction period that are not listed anywhere (various fees, travel costs, etc.).
Regards Olli

How did you actually manage to get out of the other contract? Was it that easy or did you have to pay a penalty fee?

How did you actually manage to get out of the other contract? Was it that easy or did you have to pay a contractual penalty?

No, we didn't have to pay anything, we had agreed on an extended withdrawal period from the beginning and were still within the period.

Well then, that's good, one problem off the table.

Hi,
Buy land, I would maybe finance it fixed for 5 years and pay off as much as possible in the meantime.
Then build after 5 years, if it works earlier you’d have to consider whether to stay with the bank or possibly pay the penalty for early repayment, depending on what is cheaper.
Regards, Olli

But the bank does not have to accept termination in 3 years. They can simply wait it out if necessary. Contracts must be adhered to and a special right of termination is usually only regulated in the case of sale.