Affordable construction financing still possible!

And for all those who will need follow-up financing in a few years, this could be the lifeline.

Only if you can afford it. To secure 150k in 9 years, you have to save up a good 68k. That results in a monthly installment of a hefty 930€. The low interest rates then apply, of course, only to 82k. And that must then be paid off with 1065€ monthly. Simply securing a larger residual debt "just like that" is not possible.

Only if you can afford it. To secure 150k over 9 years, you have to save a good 68k. That results in a monthly payment of a hefty €930. The low interest rates then, of course, only apply to 82k. And those have to be paid off with €1065 monthly. Securing a larger remaining debt "just like that" is not possible.

That's how it looks, which is why the 2.xx building society savings contracts are more reasonable; you have to save about 30% and get 70% as a loan... depending on the time, however, the rate can already be quite challenging.

I am always amazed by the ignorance and the supposed knowledge of some users. Basic knowledge and insights are disparaged and immediately dismissed.

Some time ago, I wrote something here about building society savers. For God's sake. They are so bad, etc., and immediately.

If you google a bit, you will find under the building society that my account name refers to, that is the one with the fox, the current offer for concluding building society contracts with exactly these 0.95% interest rates. I would now conclude that or even several.

The closing fees are somewhat annoying, but other banks charge that too. Nominally, I am still very cheap there.

No WhatsApp group, no commission, no PM, and nothing bad. All just stupid accusations from the well-known users here.


Fixed debit interest rate from allocation 0.95%. Effective then at 1.44%. The building society loan is an annuity loan granted for housing purposes.

And here we go again! Blocking, blocking, blocking, blocking, blocking.......

When I took care of the construction financing in August, I had a similar offer from the local Volksbank with the building society.

As far as I remember, I had to repay the entire amount by 2052. The commission to the building society would have been around 9k, so including interest over the entire term I would have to pay a staggering 70k more in interest.

After that, I asked the house bank without the building society. Loan fully repaid in 25 years, compared to the offer with the building society which was 30 years. Also, from the house bank I pay 70k less interest.

The 0.95% only comes into play at the end, while you save before that. Why should I pay 5 years longer and still pay more interest?

We signed with the house bank in August under the following conditions: 420k loan 3.0% 20 years fixed interest rate Calculated repaid after 25 years, with an initial repayment of 2.7%, which corresponds to a monthly rate of 2k.

Unfortunately, the building society could not deliver anything better.

We also once ran a model with a home savings contract just for fun. Despite the significantly lower loan interest rates with the home savings contract, the mixed interest rate calculated over the entire term was then considerably higher. The model was basically to take out a now "normal" bullet loan, only pay interest on it, and simultaneously save into the home savings contract, which would then eventually replace the other loan. As I said, it didn’t pay off for us at all (I don’t remember the exact figures anymore).

No idea if there are also scenarios where it might possibly work better. (If you only build in a few years and start saving in the home savings contract now? But by the time it’s fully funded, interest rates might be lower again?)

I know that we also calculated with less equity initially than we ultimately used; maybe you could have leveraged something with a lump sum payment into a home savings contract? (No idea, I’m just guessing) (So we did compare the option with and without the home savings contract with the same equity input and without the home savings contract seemed cheaper to us... when we later decided to use more equity, we didn’t explicitly discuss the option with the home savings contract again)

Either way. Be careful and make sure to calculate it thoroughly :)

If you had chosen your words correctly, no one would laugh at you or call you a troll.

It is indeed the case that the LBs offer building savings contracts at 1%, but at least 60% must be saved, and the withdrawal period is somewhere around 4 or more years.

The LBs also offer us 1.19% with 30% saving sum. We have secured our entire remaining debt at 2.3%. Our bank advisor is now calculating whether the switch is worthwhile for us and whether we give up the credit interest in return, but get the higher repayment.

By the way, the LBs Bw and LBs Bayern will merge at the end of the year, then the contracts will be changed. The low interest rates will no longer be available then.

When I took care of the construction financing in August, I had a similar offer from the local Volksbank with the building society.

As far as I remember, I had to repay the entire amount by 2052. The commission to the building society would have been around 9k, so including interest over the entire term I would have to pay over a whopping 70k more in interest.

After that, I inquired from the house bank without a building society. Loan completely repaid in 25 years, compared to the offer with the building society of 30 years. Additionally, with the house bank I pay 70k less in interest.

The 0.95% only applies at the end, while you save before that.
Why should I pay for 5 years longer and also pay more interest?

In August we signed with the house bank under the following conditions:
420k loan
3.0%
20 years fixed interest rate
Mathematically repaid after 25 years, with an initial repayment of 2.7%, which corresponds to a monthly rate of 2k.

The building society unfortunately could not deliver anything better.

Thanks again, according to Sparkassenrechner it is really the case that a normal loan would almost be cheaper for us as well.

I would need someone independent because this whole thing is quite opaque to me.

How much interest is currently possible for a follow-up financing?

[ATTACH alt="Screenshot_2022-11-11-17-49-43-907_com.android.chrome.jpg" type="full"]76166[/ATTACH]

I would need someone independent because the whole thing is quite opaque to me.

It's also hard to calculate. For the first X years, you make a negative interest spread business with a building savings contract. You don't get any interest on your building savings contract while you either pay significantly higher interest elsewhere or receive more interest (e.g., fixed deposit). The whole thing is in the hope that you save enough later to make it worthwhile. The problem is... building savings contracts have a very high repayment. We're talking about initial repayments that are clearly double-digit and accordingly you benefit from your great interest rate only for a short time. For the Schwäbisch Hall offer, I just calculated 14% initial repayment. But if you are able to start the follow-up financing with 10% initial repayment at 5% interest, you will also finish extremely quickly. Only without closing fees and with interest until then.