Annuity loan vs. annuity loan + large housing loan

hello everyone.

following input data:
house construction costs incl. land 400 k€
equity and own contribution 100 k€
financing requirement: 300 k€
desired installment 1150 €
salary: both 55 k€ each

goal or wish is the longest possible fixed interest period and a transparent option. the following current offers are under discussion.

1. annuity loan 300 k€ at 2.35%
outstanding debt approx. 75 k€
interest costs approx. 115 k€

2.
annuity loan 200 k€ at 2.05%
outstanding debt approx. 10 k€
interest costs approx. 65 k€

two [wohnriestervertrags] for me and my wife with 50 k€ each
pre-loan through Wüstenrot; conditions 2.2% in the first 10 years. then the contract is eligible for allocation and the savings contract replaces it. the effective interest rate there is 2.72%. with our planned installment of 1150 the savings contract is paid off after 7 years.

child not here yet but planned. therefore, besides the normal allowance, a child allowance also flows into the contract as a special repayment. for that we have assumed a conservative tax saving which also flows as a special repayment into the contract. conservative means 1 full salary and half.

our installment in option 2 is also 25 years at 1150 €. the advantage is significantly lower interest costs and the outstanding debt, which is almost zero. the disadvantage is probably the deferred taxation of the [riestervertrag]. that applying the tax saving as a special repayment is probably not entirely correct. but we will discipline ourselves on that.

the tendency clearly goes to option 2. due to the lower loan-to-value ratio, the interest rate on the annuity loan decreases to 2.05% with 25 years fixed term. I think this is simply unbeatable at the moment.

what do you think?

best regards

Oh, I see... The fixed interest period for the [Annuitätendarlehen] is 25 years each.

to 1. According to my calculations, the €300K amortized loan also performs slightly better than in your calculations. (Outstanding balance approx. €70K after 25 years) The brief cross-check confirms this as well. (300 installments x €1150 = €345,000 minus interest €115,000 = €230,000 principal repayment)

to 2. Your tax savings are definitely not correct. According to my research, it is around €850 per contract.

The distribution of contributions is unclear. When I calculate the €200K loan, the annuity amounts to approximately €820. In addition, there is €183 interest payment for the 2x €50,000 loans. With the same available rate, €73.50 each remain for contributions to the building savings contract. With this, you will not have it ready for allocation within 10 years.

Generally What is the probability that you will make further special repayments and if so, in what amount?

to 1. I agree with you. It was only roughly estimated anyway :)

to 2. A tax saving of approximately €450 per contract was assumed. Currently, with two full earners, this is rather conservative. If you consider having children or if my wife only works part-time afterwards, it fits better. Therefore, it was only an assumption.

The annuity of the large loan will be adjusted twice:
10 years €766 + 384 (2*192€) for the advance loan = €1150
7 years €580 + 570 (2 * 285€) from allocation = €1150
8 years €1150

The allowances and the tax savings flow into the Riester contracts for 17 years.

Special repayments are planned. However, they are hard to estimate. max. €5000 per year

Both with a net salary of 55 TEUR each? So 110 TEUR family annual net income?

That doesn't match the rate. It could (should) be significantly higher for it to appear economically sensible despite low interest rates.

I would go for a pure annuity loan with the rate you want and save the Riester separately outside of the financing as a "gimmick." You would have to pay in fully anyway for the subsidy to be even remotely attractive.

And regarding the interest rate expirations, you can still decide whether to continue full financing or to repay something from the Riester contracts. The option is always open to you.

55 gross. Therefore, I think the rate fits. Especially since [Nachwuchs geplant ist].