ᐅ Financing a Double Garage After Completion of a Single-Family House

Hello everyone,

We are in the final stages of completing our single-family home.
Initially, we decided to forgo the garage in the planning phase since everything was already becoming more expensive than planned.
However, now that we are inheriting a vintage car and also receive the child benefit for two children (200 euros/month for 10 years), we would like to build the garage after all. We would also contribute an additional 10,000 euros of our own funds. --> So that would mean 34,000 euros in total.

My question is whether projects like this typically come with higher interest rates or not (compared to a single-family home)?

Maybe someone already has experience with this?

Thanks in advance and best regards,

Zenjamino

Zenjamino schrieb:

My question is whether projects like this generally come with higher interest rates or not (compared to a single-family home)?

1. There are only €10,000 in the pot. Or can you use the Baukindergeld NOW?
2. You only need a small loan for the construction. Small loans come with a significant surcharge because the effort is the same as for large loans but the profit is lower. Many banks only start financing real estate from €50,000 or €75,000.
3. The question will be whether you can find a bank at all. I assume you already have financing in place for the single-family home, including a first-ranking mortgage registered in the land register. Therefore, any third bank would likely reject a standard mortgage financing because there is no security left for the loan. At best, maybe through a building society or as a personal loan.

The answer to your question is: financing will be significantly more expensive than for your single-family house.

Yes, higher interest and at the same time higher repayments for shorter terms.

Just call your financing bank and say you want additional financing for a garage. Maybe they will offer a good interest rate. Please let us know what rate they offer you.

If all else fails, a personal loan could also be an option: comparison sites say the Postbank might offer from 1.55% or ING from 2.89%. (Not intending to advertise).

I think it will come down to a personal loan since the amount is likely too small. You might be able to get additional financing that is more expensive than your construction loan but cheaper than a personal loan.

How much is this going to cost?

Selling a classic car provides money for the garage 😎

Zenjamino schrieb:

If one inherits a classic car and we also receive the child benefit for homebuyers for 2 children (€200/month for 10 years),
we would definitely like to build the garage.

Off Topic:
I’m going to write this wherever it fits:
I think it’s completely wrong how your tax money (subsidies) is being used. You don’t need it for grants, only for your extra consumption, right?

To those who have, more is given.

But it is better for the subsidy funds to be absorbed by the German construction industry than by corporations, Netflix, PlayStation, or other consumer goods, where the money usually flows abroad directly. Economic support through construction is a good thing.