What conditions can I expect?

Hello dear construction financing experts,

we would like to request 2-3 more financing consultants for the loan soon. We have already gone through the house banks with not so great conditions. To be honest, I am uncertain about what I can expect and what not. Especially regarding the framework conditions of the financing.

We would only have to draw the money when construction is actually taking place. We pay both the architect and initial construction work, permits, etc. from equity. Therefore, it also does not make sense to sign a financing contract yet, unless there are banks that provide the money for 24 months without any commitment fee...

This is how we want the financing to be structured:

- Project sum €920,000 (ALL INCL., including the land, etc.)
- A plot of land valued at €220,000 has already been fully paid from equity
- We would also contribute additional equity (€350,000) to then only have to finance €350,000
- The loan should have an interest rate fixed for at least 20 years
- In the first 5 years, we want to repay only 1 - 1.5%
- From the 6th year, the repayment rate should increase to 3.25% (depending on the repayment rate in the first 5 years so that we reach a 30-year term)

Now the question is what expectations I can have going into the discussions regarding conditions and whether it is possible as we have envisioned regarding the repayment rate changes.

What is your income? I wouldn't want to spread these "only" 350k over 30 years. You have a lot of equity. Especially at the beginning, I find that quite low. There are already partial changes to the repayment rate. Maybe that will improve the conditions a bit. Just tell me what you have been offered so far. Then we can put it into perspective.

We have been offered conditions of 1.7% for a 15-year fixed interest period, which I actually find outrageous given the current situation. Our wish would be around 1%. No idea if that is realistic.

We were offered conditions with a 15-year fixed interest rate of 1.7%, which I actually find quite outrageous given the current situation. Our desired rate would be around 1%. No idea if that's realistic.

It could definitely be realistic. Have you asked an intermediary? Regarding the interest-free provision period, it will probably end up between 6-12 months. You can't have everything.

Could certainly be realistic. Broker contacted? Regarding the interest-free period. It will probably end up between 6-12 months. You can't have everything

As mentioned, the visit to the broker is planned. But I would like to know beforehand what is approximately realistic regarding their or our wishes. The interest-free period is rather uncritical for us, I think. Since we would probably manage with 6-12 months without interest on the commitment. But ideally, I would like to have everything settled now. Hence the question about the commitment interest.

What is your income?

Have you inherited/been gifted equity/land or saved it yourself?

Are there any other loans running?

And how old are you?