What is actually negotiable in financing?

Hello everyone,

what is actually negotiable in a financing?

We have been offered a good interest rate of 1.80% eff. for 15 years fixed interest period on 370,000 EUR, interest on unused funds only after the 9th month, 5% special repayment per year, and two repayment switches during the term.

Can the interest rate still be renegotiated now or is such a thing always fixed or only the interest on unused funds?

Regards, Redsonic

It is negotiable what both parties agree to. There is no general answer to this, and certainly no system behind it.

If it is the first offer from a bank, there are often still a few basis points left. With a better offer from a competing bank, sometimes even more than one would expect. Sometimes it also helps to play for time a little.

However, I do not see your starting position as optimal (different thread) as if you were in the stronger negotiating position, and accordingly the interest rate is not good either. It is to be classified as rather usual because of the loan-to-value ratio.

However, I do not see your starting position as optimal (another thread) as if you were in the stronger negotiating position, and accordingly the interest rate is not good either. It is rather to be classified as higher than usual because of the loan-to-value ratio.

I would say everyone reaches a point where further information or a more detailed engagement with a topic becomes necessary. In this respect, questions arise, the answers to which can then improve the starting position. After my first online research, I actually thought that the interest rate is quite good. The loan-to-value ratio will be around 70-75%.

How do you come to this calculation, respectively this mortgage lending value?

If I remember correctly, the house is supposed to cost 315 TEUR (+ special requests, garage, incidental construction costs, additional costs, etc).

And you want a loan of 370 TEUR.

For me, that's somewhere a 100%+ financing, as long as there is no detailed presentation.

About the already paid land and the ancillary acquisition costs that the bank has included. That is, after all, in total like equity.

Okay, that is not stated anywhere. Then I find the interest rate too high, however.