With whom to finance? Main bank or direct provider?

Hello everyone,

my wife and I are currently in the process of planning our house and are now slowly working on financing the construction project.

When you surf the internet, you often find many providers and financing calculators that offer very favorable conditions.

But just based on feeling, I would prefer a house bank or a locally based bank, since you have your contact person just around the corner.
On the other hand, it is of course a difference if the interest rate is 1 - 2% higher, furthermore I think that when push comes to shove, a "direct bank" or locally based bank doesn't care how you pay, as long as you do.

The loan requirement would be about 200,000 Euros and the total property value amounts to about 280,000 Euros.

We are grateful for any advice or experience.

Thank you very much!

Hi,

I also stuck to the local banks, although it definitely makes sense to get several offers from different institutions. For example, my house bank offered me significantly worse conditions than an external institution, which ultimately was awarded the contract.

It certainly depends on what you do. If you fit into the standard framework of a direct bank/insurance, then you can get top interest rates there. Your local bank/house bank can never offer you that.
A self-employed person will have more problems with an online bank and might be better off with the house bank.

We also went to an initial consultation at a local bank. There they were already hemming and hawing: "We only finance up to 60% loan-to-value, the rest only through a building savings contract or consumer credit".... No way... not like that. And their interest rates were also well above normal.

At the moment, we are using the option of accessing various banks through one of the major online brokers. Alternatively, the Saxon Development Bank is also in play.

Musketier is of course right there. I have to add that I am self-employed, so an internet provider would never have been an option for me. It was already enough to deal with the pile of papers for the external institutes where I still requested offers. :D

Thank you very much in advance for the answers....

So we are both employed.

Furthermore, the total property value including the land is about 300,000 euros and about 200,000 euros should be financed (this might be a useful hint).

Maybe there is also a useful independent financial broker in your area? Then I would go there. If both are in an employment relationship, good interest rates await.