Commitment interest explained

Commitment interest explained: when it is incurred, commitment-interest-free period, calculation example for new builds, and tax for rentals.

FAQ

Can I avoid commitment interest?

Only completely if the loan is fully called up within the free period. For new builds, this depends on construction progress.

Does KfW also charge commitment interest?

Yes, even for KfW loans there is commitment interest after a free period. The values are in the program's leaflet.