ᐅ Is it possible to finance a fitted kitchen?

It’s not about being unable to account for 20,000 euros ... just read carefully:

nordanney schrieb:

go to the broker, don’t mention the kitchen, use equity for the kitchen, increase the financing. The result is exactly what you want without any discussion.

I already wrote this in post 10 ..

K1300S schrieb:

What is special repayment?

At least in the contracts I have read so far, you can only start making special repayments after one year. Until then, you pay interest on the "excess" money. That’s why I think it’s always important to create the most accurate calculation possible, because having too little money is really inconvenient, but having too much also unnecessarily costs interest (both regarding the later repayment and due to a higher loan-to-value ratio, which leads to a higher interest rate).

Special repayment 5%. If there are no invoices for €20,000, why should you pay commitment interest? I assume that the €20,000 does not have to be documented and that the loan is considered fully drawn. Or have I misunderstood?

That will be the case, with the 20,000 EUR (approximately 21,500 USD) already being the upper limit of what is granted without documentation. However, you can only make extra repayments one year after full disbursement, so you will still have to pay interest for that year.

K1300S schrieb:

That will probably be the case, with the 20,000 EUR (about 21,700 USD) likely being the upper limit of what is granted without proof. However, you can only repay early again one year after full disbursement, so you will still have to pay interest for that year.

Yes, you are probably right. But better to pay the 200 EUR (about 220 USD) in interest than to refinance at a higher rate. With ING, it’s +1% above the original loan interest rate.

By the way, our favorite is also ING!
The loan-to-value ratio is about 70%.
However, ING is quite particular and operates like a custom credit provider. If you don’t fit their criteria, you will be rejected without the possibility to negotiate. Also, ING does not accept the kitchen!
The same goes for Allianz, which ranks second for us.
ING offers just under 1% for a 20-year term, while Allianz is at 1.29%.
Provision interest after 12 months is 1.8% with ING. ING only allows a maximum of 12 months.
Allianz allows up to 24 months. The interest rate mentioned above includes 18 months.
DSL, where none of this is a problem, offers 1.59%. This has nothing to do with loan-to-value because the interest rate stays the same even if we were to request 20,000 less!
For example, ING is one of the banks that checks very carefully whether receipts for the funds are available. There is no simple payout without proof. In the end, a bank appraiser comes to verify whether everything has been built as specified. If the chimney is missing, it could cause trouble.
Those are my facts.
Does anyone have other information on this?

The topic of releasing the remaining funds is also on my list, but we could start a new thread for that.

ypg schrieb:

Yes, that shouldn’t be a problem and is quite normal.
You can also adjust the calculation by rounding up generously or include a fireplace that you then… oops… don’t actually build. You can then use the leftover funds for the kitchen.

That’s exactly the question: does that really work?
We also calculated with a construction buffer and generous estimates to be sure there would definitely be some leftover.
But how much can actually remain, and how much will the bank ultimately release for discretionary use?
It probably varies from bank to bank, but it’s a nightmare for any homeowner.