Variable or fixed financing for land?

Hello community,

since due to financial reasons the bank can only provide a maximum financing amount of €290,000.00, but we completely need €350,000.00 (+ €35,000.00 equity), I wanted to first only finance the plot of land.
The plot of land comes from the community and should be purchased promptly.

In about 2-3 months my civil servant salary will increase by €500.00, which can only be taken into account then, and my girlfriend will receive a proper salary again (currently only €600 parental allowance).

Now the question arises for me what is smarter, financing the plot of land with a variable interest rate that can be paid off monthly or financing with a fixed interest rate.

Thanks in advance for your tips and opinions.

Middle way? A fixed interest rate for 6, 9, 12, 15, 18... months is currently, in my opinion, the most cost-effective solution.

Of course, this requires good and consistent planning.

Furthermore, I would change the bank if they cannot plan more flexibly or cannot provide a conditional financing commitment.

With parental allowance and civil servants, this should not be a problem upon presentation of the corresponding "evidence".

Hello,

with a variable interest rate you have more room to choose an external bank as an alternative when it comes to the total volume. The disadvantage is double costs for the land registry office as well as the higher interest rate.

The other way round, cheaper interest rate.

Getting 60k more will be tight, and if you want to finance beyond that even tighter. Have they given you reasons for the lower amount? Is it purely due to income combined with parental leave?

ok thanks, I think the fixed interest period of 6 months should be the ideal solution for us, since by then everything will definitely be settled.

The reason was the low parental allowance and the fact that all the subsidies I am currently receiving cannot yet be taken into account.
However, our son born 3 weeks ago is already being considered as a negative factor in the financing.
The following income is taken into account:

2,000€/month net salary
600€/month parental allowance

Income not taken into account or child benefit and family allowance only applied for:

350€ - 420€/month separation allowance -> not considered because I have to apply for this monthly
190€ child benefit
2x 126.70 Euro family allowance
Small business income since March 2016 of about 300€/month net

P.S: In addition to the currently considered 35,000€ equity capital, another 23,000 - 25,000€ (after the sale of our third & most expensive car) equity capital will be added.

The ideal time to build would actually have been half a year ago or in half a year, but since we have now, after waiting 3 years, with a lot of luck, been approved for the plot by the municipality, we have no choice but to buy the land now.

From the bank's perspective, it is understandable. At that time, we had a net income of 3k and 1300 € parental allowance, and for example, the DB did not want to approve a 250k loan. They did not consider the parental allowance at all.

How does it look for you after parental leave with the net income?

Are you now building with Massa Haus or not?

Starting from January, my girlfriend will be working again (under 30 hours a week) and will receive parental allowance plus, which is about €1100-1200 net.

We are building 95% with the company Danwood because we were constantly disappointed by Massa Haus.
I now have another purely Polish company on hand with which an acquaintance is already building positively (20 km away from us) and which is also quite a bit cheaper.
I already had a thread about this here, but it was deleted with the reason being advertising.