Alternative financing for home purchase

Hello everyone,
I/we intend to buy a house in the near future.
Purchase price €342,000 (without broker), equity approx. €60,000
That would leave us with a loan of approx. €300,000 - €305,000
Household net income €4,500, (no debts or loans)
Since we are still quite young (29), we would actually prefer a 30-year fixed interest rate, with 5% prepayment and adjustment of the repayment rate. We are currently obtaining and comparing offers from banks, etc.… Are interest rates below 2.5% realistic (with a 2.25% repayment)?
Does anyone have an alternative financing strategy or experience with forward loans? For example, fixed interest rate initially only 5 years but simultaneously concluding a follow-up financing?
Thanks
Best regards

Hello Standi,

first of all: fundamentally, a percentage below 2.5% is not so unrealistic nowadays.

In my opinion, the cheapest option (when considering total costs) is a combination of bullet loans in connection with a building savings contract, I don’t want to explain exactly how that works here as it would go beyond the scope. The advantage here is that you already know today how much you will pay back in total and can plan precisely.

Of course, you can also take a regular annuity loan with an interest rate fixed for 10 or 15 years, usually the interest rates are cheaper here as well. But nobody knows what happens to the interest rates after the fixed period ends.

I would stay away from Wohnriester (own experience), unless you want to modernize your own home at some point, etc.

Almost everyone probably knows the KfW loan by now, their programs can basically be integrated everywhere.

I hope I could help you a bit, and of course there are people who have a different opinion.

If you are interested, we can discuss this in more detail, the best way is to write a private message.

Kind regards

Walter

Walter alias Thomas [emoji51]

Don't make every new banker the scapegoat right away. ;)

I consider 30 years under 2.5% at ~90% loan-to-value to be very ambitious. The attractive conditions in the 25-30 year range come from insurers, and with them it usually ends at 80% (and they also assess conservatively). Maybe something can be rigged with a building savings contract, but with the associated disadvantages. Why does it have to be exactly 30 years? 2.25% repayment is not that bad; after 20 years there are still 120-130K€, so the interest rate change risk is correspondingly manageable. Especially if special repayments are actually made. One could also take the interest savings over 30 years and repay higher immediately, then the remaining debt is correspondingly lower.

Don't make every new banker the villain right away. ;)

Not every one, but every Scorpi from Lower Saxony who offers more info via PM