Which loan is feasible?

Whether a bank will go along with it, no one can say here. But if the full amount is covered by land charges and life insurance policies, then in my opinion it will work.

The calculation, on the other hand, is quite simple. I understood that you want to have paid off 60-65% in 10 years, right? So that’s 6% amortization...

So assuming 1.5% interest, 6% amortization, and 3,200 EUR/month = 512,000 EUR loan amount

At 2,500 EUR monthly "only" 400k and at 4,000 EUR a full 640k. If these amounts are covered by your land charge and life insurance (plus a safety discount of 10 to 20%), then a bank will also agree. If the income then does not come, then everything is lost, the rental house, own house and life insurance...

Hello Lars. The securities are not the problem. If it should really come to the case that the energy supplier goes bankrupt, all tenants stop paying, and my salary collapses, there is still the possibility to sell part of the securities (especially since the building plot would not necessarily have to be encumbered with a land charge). If that also does not work, I obviously face a massive problem. But if everyone would not build because of all the negative contingencies that could occur, I believe hardly any loans would be granted in Germany. A residual risk can never be completely excluded as long as the money is not actually in the bank (as security). Although then of course the question arises whether the interest there is higher than the interest that has to be paid for the loan. I don’t want to say that such a scenario does not exist. But it will probably be the exception.

Are the 1.5% you mention realistic? Especially also with the possibility of special repayments?

Furthermore, I don’t quite understand your calculation. I suppose you combine the 512,000 from around 307,000 (approx. 60%) repayment and around 77,000 interest payments (= 120 x 3,200 €) But is the interest burden really that high (i.e., always the same over the 10 years)? I repay from the first month, so the interest burden should also decrease from the first month, right? Or is this a special rule in loans that are not repaid to zero?

The calculation is correct as it is. This leaves approximately 35% of the remaining debt after the 10-year fixed interest period. The effect of "plus saved interest" is already included, but this effect is not really as significant as it used to be with higher interest rates in the past. Through repayment, you only "save" about 1.5%, whereas previously savings of 6 - 8% could have occurred. This leads to an extension of the loan terms with the same repayment rates compared to earlier times. ;-)

The interest rate is not unrealistic at the moment. Ultimately, it is a matter of creditworthiness and other conditions. Negotiation skills are therefore required.

The interest rate is always a question of the loan-to-value ratio and, if applicable, surcharges for risk, early repayments, interest-free periods, etc., but with only a 10-year term, 1.5% should be quite achievable. A self-employed person usually pays more interest than an employee with the same loan-to-value ratio due to higher risk. Rental properties probably factor something in here as well, but this varies a lot between banks and can only be calculated by them. Sometimes the loan-to-value ratio after such a conversation is also higher than one thought before (risk discount by the bank). In our experience, regional banks are more likely to handle such cases than the cheaper online banks, simply because they know the local market better.

To calculate various options, there are plenty of mortgage calculators on the internet, just google interest rates + calculate. They also always generate amortization schedules, which helps to better understand the topic. Early repayments can also be factored in there.

Lars, please refrain from making general statements such as "Self-employed have more risk than employees." On the one hand, this is not generally true, and on the other hand, the risk for a bank in a construction financing mainly lies in the collateral and only secondarily in the repayment rate, this also applies to the self-employed.

Your first sentence was correct so far, but with the rest you ruined a lot again.

At this point, many thanks for your assessments.

I take away for myself that 500k credit volume with my conditions at an interest rate around 1.5% represents a realistic value.

Now I have also been told that I - as we plan to do - with a timber frame construction have relatively good chances of meeting Kfw70 requirements.
Whether that is or will be the case is purely hypothetical since we are not that far in our planning yet.
But in case it would work out: How would that affect things?
Without getting specific, I keep hearing that it makes quite a noticeable difference.... but I cannot really grasp it!
Is there an upper limit for KfW loans per single-family house?
Is it based on "building volume"? On m² ground/living space?
What do the interest rates look like?
Must it be fully repaid within the fixed interest period?
What is accepted as collateral?