Currently, due to rising interest rates, I am interested in a home savings contract again, and generally have a question about the allocation period (I know this consists of the term, the valuation number, and the minimum sum that must be paid in).
Is this minimum term capped in any way, or does it vary depending on the provider? I am looking for something that is available after 6-7 years and does not have to be paid into for at least 10 years or so.
When it is ready for allocation depends on:
- Savings duration
- Savings amount
because if you save €200 monthly for 10 years (you will then have saved €24,000), you get more points than if you only save €50 and then pay the rest in a lump sum shortly before the end.
The building society can simulate such things, i.e., they calculate for you as of today how much you have to save monthly to get amount X in 6-7 years.
BUT
the simulation is as of today, meaning if in the coming years, due to the interest situation, many home savers use the building loan, the "valuation number for allocation" will rise, meaning in the example above it may then take 11 or 12 years to save €200 monthly in order to get the allocation!
Therefore, my advice:
calculate what you have to save to get the allocation by date XY
then in the second step, after half the time: call the building society, have them simulate it again, then you will find out whether you have to pay in a little more monthly to get the allocation by date XY (and it’s best to do this annually)
this way it will be guaranteed that there will be the allocation then, and not 1-2 years later.
If you need a few offers from building societies (I have them all in selection), then contact me.