The planned house renovation is larger than originally financed. The bank has confirmed the existing loan but has not yet approved the additional amount. For the next contract you must therefore separate the existing coverage from the requested extension.
The existing agreement is not the new approval
Determine the still callable amount from the actual documents. Add which scope and which conditions are covered by this approval. A desired increase receives its own line with its actual processing status. It is not made available by merely adding it to the available credit.
§ 505a Absatz 2 BGB requires, in the case of a significant increase in the net loan amount, as a rule a new creditworthiness assessment on an updated basis. The provision names the exception where the increase amount was already included in the original assessment. [ERHOEHUNG] From this it follows neither a general percentage threshold for “significant” nor a right to approval of a specific increase.
Calculate the current shortfall
In the hypothetical case, 30.000 euros of the existing financing are still usable for the scope under consideration. The updated outstanding payment requirement amounts to 55.000 euros. In addition, 5,000 euros of actually available own funds can be used. Before a new approval, 20.000 euros remain uncovered.
An application for 20.000 euros would mathematically cover this gap, but it is not yet an available inflow of funds. Any new costs or other conditions are expressly not included in the example and would need to be added for a real offer.
Prepare a new sustainability (affordability) assessment
Enter the updated performance and cost status as well as the current personal income, expenses and obligations into the coordination. Ask which evidence the bank requires for the specific assessment and whether it will consider a different financing structure. The personal household calculation subsequently includes the payments actually planned from both the old and new financing together.
An unchanged interest rate or a mere continuation of the old instalment will not be assumed without an offer. Nor is it presumed that the same collateral value must cover every additional sum.
Return with the order to the confirmed status
Compare the next due payments with the funds already confirmed. If they depend on the increase being approved later, that dependency must be resolved before any further commitment. Changes in performance and existing contractual obligations will be coordinated professionally for this; this site does not recommend unilateral non-payment.
The result is an updated, consistent financing status. It states the additional requirement and the bank’s still pending decision. The earlier approval is thus correctly classified without serving as an automatic approval for a new project.