Which loan should be drawn first? Which special repayment should be made?

Hello,

I will soon pay the first invoice with the loan. My equity contribution (68,000 EUR) is now used up, which I had to consume first-ranking.

For the real estate financing, I have two loans with my bank (contract was at the end of June 2019):

1:
70,000 EUR at 0.95% nominal interest; installment: annuity 230.42 EUR; number of installments: 349. Repayment 3%. Fixed interest period 10 years. Remaining debt: 48,171.18 EUR
Loan drawdown until: 01.07.2020. Afterwards 2.5% p.a. commitment interest.

2:
250,000 EUR at 1.56% nominal interest; installment: annuity 950 EUR; number of installments: 324. Repayment 3%. Fixed interest period 20 years.
Loan drawdown until: 01.07.2020. Afterwards 2.5% p.a. commitment interest. Remaining debt: 74,949.73 EUR

I now have to make the 3rd payment to my general contractor. According to the "Bautenstands-Plan," the (pure) house construction (turnkey) should be completed in July. Until then, about 235,000 EUR of the loan amount will have to be paid. 320,000 EUR - 235,000 EUR = 85,000 EUR will remain unused for a while. These will then be used for exterior facilities, double garage. In any case, I am now entering the nice situation of having to pay commitment interest on the not yet drawn portion.

My questions now:
1. Which loan should I draw down first?
2. My plan was to make an annual special repayment of about 1,000 EUR into the 70,000 EUR loan to reduce the interest rate risk after 10 years. Since I pay "only" 230 EUR annuity per month, the special repayment shortens the term considerably. With the larger loan, the special repayments make less of a difference.

Thanks in advance. I am also generally open to suggestions or criticism of the "construct."

1. Which loan should I draw down first?

Totally doesn't matter.

Would withdraw 70k. Then the annuity would already flow here

The call-off now does not matter. When completion is done, I would try to call off the remaining amount. But 80k is not little given the financing volume, why is at least the garage not already under construction soon?

Is there no chance to get the remaining loan paid out upon moving in? We moved in after just under 11 months of construction, and 2 weeks before the start of the commitment interest, I had the remaining 45 K paid out without any problems or proof.

Ultimately, is right. Why not have the garage built now? We are also doing it afterward because we didn’t know before if it was financially feasible. In hindsight, I regret not having it done at the same time. It would have made a few things a bit easier and also cheaper.

Edit: Strike the cheaper. Due to the tax deductibility, it turned out to be rather cheaper in hindsight.

Would withdraw 70k. Then the annuity would already flow here

Okay, that means that after full withdrawal the agreed installment of this loan would have to be paid? In addition, from 1.7.20 the 1.56% interest would be due for the 250k loan for each withdrawn amount as well as 2.5% p.a. for the non-withdrawn part? Only after full payment the agreed installment?

The withdrawal now doesn't matter. When completion is done, I would try to withdraw the remaining amount. 80k is not insignificant given the financing volume, why isn't at least the garage already under construction soon?

The garage planning is part of the house price. But since the house construction company had too much to do and we would have had to pay the general contractor surcharge of 20%, we were advised to tender the garage ourselves. Unfortunately, I did not receive any positive feedback on my inquiries to construction companies. However, the shell construction company that is currently working on our masonry already mentioned that they could do it – when, of course, is still unclear due to the workload. We wanted to have the garage done right away, but we did not suspect that it would be so difficult to find a construction company for this...