We want to build a house

Is the own property treated exactly like equity or do the loan conditions worsen then?

Basically, the property counts as equity - provided it is also debt-free. However, banks can apply a safety discount (approx. 10 to 20% of the value). If the property costs €100,000, a maximum of €90,000 will be credited as equity.

They would also calculate the SA if the property is purchased with a loan or in cash after the financing. Therefore, it is not a specific disadvantage of early purchase.

That is of course true. It would only be a disadvantage if the land price falls before construction starts. ... but the price could also rise. ;)

Okay, thanks for the notes on the SA. The value will probably not change until construction begins, as it is only just under a year. Next week we will go through the financing concepts with the bank and then we will see how they see it.

If you are looking for financing, please don’t forget to also inquire with the major life insurance companies.

They often offer conditions that many banks currently cannot match.

Regards,

Dirk