Project financing 2026: when the bank no longer carries the project
The calculation stands, the plot is secured — and the house bank still waves it through. I hear this feedback more often in 2026. It has less to do with your project than with the question of what a loan costs the bank in capital today.
The interest environment as a starting point
For standard private loans, the top building rate in June 2026 is around 3.7 % on a ten-year fixed-rate period. On average, buyers pay closer to 3.9 % on ten and 4.2 % on fifteen years. The yield on ten-year German government bonds — the most important pace-setter for property rates — stands at around 3.1 %.
That is the benchmark for private end financing. Project capital for developers sits above it: it carries a higher risk, because the finished, let property does not yet exist. Anyone financing a project in 2026 calculates with a premium on this level — how high depends on equity, pre-sales and security.
Why banks are becoming more cautious on projects
The reason rarely lies in the individual scheme, but in regulation. Under CRR III, a bank has had to hold more capital for loans classed as riskier since 2024. Project financings for developers are among the loans whose risk weight has risen.
The consequence in practice:
- Higher equity requirement: what worked three years ago with 15–20 % equity often demands more today.
- More pre-sales required: banks want to see a larger share of sold or let units before they commit.
- Longer assessment: more documents, more queries, more time to a binding commitment.
- Tighter grid: anyone deviating on track record, location or ratio falls out faster.
A rejection therefore does not mean a project isn’t financeable. It means it doesn’t fit the grid of this particular bank.
Where the gap is filled
It is precisely in this caution of the banks that debt funds and specialist lenders have grown. They provide debt capital for projects, accept different risk profiles and often decide faster — for a higher rate. For many developers, in 2026 this is the difference between standstill and a construction start.
We approach these houses in parallel instead of sending you from bank to bank: banks with room to move, debt funds and private lenders. The senior financing — the first-ranking secured part — we broker ourselves under §34c GewO. If the equity is not enough, we coordinate the subordinated block via partners with the required licence under §34f GewO or the KWG.
Frequently asked questions
Why is project capital more expensive than a normal mortgage?
Do you also finance if my house bank has declined?
Does the same consumer logic apply here as for a private mortgage?
Present your project to us
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