If you have not used your building loan in full, you can return it symbolically, unless otherwise contractually agreed. In other words, the rest of the budget remains with the bank. Do not exhaust your real estate loan entirely, but the bank will miss interest. To compensate for this loss, she is demanding non-acceptance compensation. It is calculated on the basis of the outstanding loan amount and the current building interest.
What options do I have if the building loan has not been exhausted?
First of all, you should be sure that you no longer need the rest of the loan. So check whether all bills have been paid and that no more claims are to be expected. You now have three options for getting rid of the undrawn loan.
- Do not use the rest of the loan and pay a non-acceptance fee unless you have a contractual agreement with the bank.
- You have contractually agreed that only 90 to 95 percent of the loan amount must be used. You can return the remaining amount free of charge.
- You will receive the money at your disposal from the bank when the new building is finished.
You are on the safe side if you already make arrangements with your bank when the mortgage is concluded when your loan is not completely needed. If you have not stipulated any contractual clauses, non-acceptance compensation will apply or you will be dependent on the goodwill of the bank.
Pay non-purchase compensation
If you have not made an agreement with the bank that you can return the remaining debt in the amount of X euros, a non-acceptance fee is usually incurred. It is calculated on the basis of the remaining debt and the current building interest. An example: You still have 20,000 euros left, the current building rates are 1.2 percent. Then you pay a non-acceptance fee of 240 euros.
You can return 5-10%
Variant two requires a contractual clause. You should therefore agree a flexible amount with the bank before you conclude the construction loan, which you can return without compensation. Banks are often willing to see between five and ten percent of the loan amount as flexible. If your remaining amount is within this range, you do not pay any non-purchase compensation.
Remaining loans at your free disposal
You can also use the unused money after the completion of the house for free, provided that you have contractually agreed in advance. Since the new building of the bank serves as security, there is no need for an invoice to get the remaining amount. It is also advisable to invest the unused loan as a special repayment in the repayment of the mortgage. Please note the lender’s special repayment guidelines. Often you can only make a special repayment one year after payment of the full amount. If you want to return the rest of the loan without a contractual agreement, this is also possible. However, the said non-acceptance compensation is then due.
Special requests in the contract usually go hand in hand with a higher interest rate. So if you plan a financial buffer in your mortgage, you may not need the loan entirely. If you then have a clause in the contract to be able to return the undrawn loan, this can mean a higher interest rate for your mortgage. Nevertheless, you should plan with a buffer, as there may be unforeseen higher construction costs for a new building at any time. If, on the other hand, you calculate too little to use up the entire loan, additional financing may be necessary. Negotiations with the bank are difficult.
Why the building loan was not exhausted
When you build or buy a house, you usually take out a loan. If you buy a house that has already been built, you will receive the total loan amount. When building a house, on the other hand, the sum is made available to you in parts. Submit an invoice after each construction phase. The bank transfers the money to you or directly to the construction company to pay the bill. As unforeseen events can occur during a construction phase and construction financing cannot be calculated exactly, you may have raised more money than required. This leaves a residual amount of unused construction loan at the end. As long as you do not use the full amount of the loan, commitment interest will apply to the bank providing you with the amount. In order to save interest, it is in your interest to call up the entire loan amount as soon as possible.