ᐅ Obtain quotes through intermediaries and then approach the banks directly?

HilfeHilfe schrieb:
Oh, so they only accept high earners now

Liquidity is one thing, but existing assets are quite another.

I tried it myself at a Volksbank with a simply calculated 80% financing. They applied such high risk deductions that their calculation ended up showing financing of over 100%. They would have even approved that, but the terms were, of course, ridiculous.

Basically, this is somewhat of a questionable situation. However, it is common practice everywhere, and everyone else is just as profit-driven. Therefore, it is completely legitimate, and all you can really do is say no.

In theory, the bank could offer a lower rate than the broker since the broker’s fee would be eliminated. However, they don’t want to do that because it would create the impression of a bargain sale. This is clearly visible with certain products that hardly sell without a discount offer (for example, a crate of soda for €8 (about $9) instead of €12 (about $13.50)).

Of course, you can get offers from brokers and then take those offers to another bank. With the same or better offer, you then go back to the first bank that was brokered and try again. If they refuse, you can contact the broker and discuss their terms. Banks dislike this back-and-forth process, but others do it too! Nowadays, optimization is everything...

A quick update on my financing plans. I need €120,000 (approximately $130,000) for my land and plan to start building in two years, so I’ve been looking into loans.

I received offers through two brokers and also visited our main bank again yesterday (Super Coffee).

The bank says there are no fixed interest rates for terms under three years, only variable rates at 2.95%.

After some back-and-forth with the brokers, I was able to secure an interest rate of 0.75%!

So, for anyone who will be dealing with banks in the future: Don’t let your friendly advisors take advantage of you—let the brokers negotiate on your behalf 😉

For the loan term, I’m now paying €1,000 (about $1,100) instead of €3,800 (about $4,200). -> That’s a saving of €2,800 (about $3,100)!

Now that your financing seems to be settled, here’s a small tip from me. Never tell a broker that you plan to get another offer elsewhere. In our case, the broker from a major German bank took offense and withdrew their offer. Hypocritically, they wanted to know who made the second offer and then ended the cooperation. In my opinion, it is perfectly reasonable to seek a second offer for amounts of this size.

Soroka schrieb:
Since your financing now seems to be settled, here’s a small tip from me. Never tell an intermediary or broker that you plan to get another offer elsewhere. In our case, the broker of a major German bank reacted so insulted that he withdrew his offer. Hypocritically, he wanted to know who made the second offer and then ended the cooperation. I believe it is perfectly reasonable to obtain a second offer when dealing with amounts of this size.

Thank you very much for the information 😉 I will keep this in mind for the next house financing.

Sorry for the late reply, but the story only just came back to me... maybe it will still be helpful for other readers.