Which loan for land purchase - KFW or bank?

Hello,

today I received the due notification from the notary for the property purchase. Since the loan consists of 3 components (2x KfW, 1x Ing-Diba), I am now considering which one to use for the payment.

My idea: The one with the lowest interest rate (= KFW 124), to keep the interest on the drawn capital low.

Are there any other opinions / ideas / considerations on this?

Thanks and best regards, Martin

Hello Martin,

I think it depends on how your individual contracts look. KFW has low interest rates but does your Ing-Diba maybe have a standby fee that then costs more? How does the further process go? If it's being built with a general contractor then you need a lot of money right at the beginning, then it almost doesn't matter... I think you can't say that in general, it depends on too many factors.

But basically I would also take the one with the lowest interest rates.

Regards
Naddl

Yes, you should calculate that, since commitment interest for the financing is due after 6 months. When your first installment payments for the house are due, only you (start of construction) or your construction company currently know. No equity is available, which could be used?

Thank you for the answers and hints. I will calculate that.