Annuity loan vs. building savings contract 300k loan

My second question you have not answered yet.

From what I know about building society savers, the installment amount/loan term results from the saving period, minimum building society savings balance, and loan interest rate. Since the loan interest rate is very low, I suspect a short loan term, therefore a high installment. In this case, it is quite possible that you are comparing apples and oranges if you continue calculating the annuity loan with the same installment.

I don’t like building society savers either, but there have already been some cases here where the building society option was cheaper when full interest rate security is compared with the annuity loan. Are both offers from a broker in your case?

Depending on how your income develops, you can also take more risk and choose the 15 years proposed by , if you are sure to regularly make special repayments. Although few people do this, we have done well with it so far.

You haven't answered my 2nd question yet.

Please excuse me.

[...]
But if you do not directly contribute the equity to the building society savings contract, but instead deposit it into the building society savings contract, shouldn't you then take the loan of €375k and the savings sum that high at the building society savings contract?
Or am I misunderstanding that?

I see it that way (now), yes ->

Are both offers from an intermediary in your case?

Yes, but I still have to ask thoroughly again. ;)

Depending on how your income develops, you can also take more risk and choose the 15 years suggested by , if you are sure to make regular special repayments. Although few do that, we have done well with it so far.

With a 20-year fixed interest period, there remains nearly €67k residual debt, which could be easily paid off as a special repayment (within the first two years).
Nevertheless, I like to calculate very conservatively.

Many thanks and best regards.

With a 20-year fixed interest period, almost 67k outstanding debt remains, which could easily be repaid early (within the first two years).
I still prefer to calculate very conservatively.

The question is always, what do the x additional years of fixed interest cost me and how much can the follow-up interest rate rise with a shorter fixed interest period, i.e. where is the break-even point.

Back then, we faced the choice of 15 or 20 years fixed interest at 2% initial repayment. Due to salary adjustments and associated special repayments, we might even manage it in 15 years (if everything continues as it has so far). So it would have been foolish to pay the interest premium for 20 years.

Hm, somehow I don't like either option. The BS is too big and inflexible at 300k. And the bank loan is not an annuity but an interest-only loan, right? Make an Excel table for an annuity. That’s done in 2 minutes. It says: 300K loan, 1.41% interest, 3% repayment: monthly rate: €1,102.50 RS after 10 / 15 / 20: 203.5k / 150k / 92.2k without ST or: 300K loan, 1.41% interest, 4% repayment: monthly rate: €1,352.50 RS after 10 / 15 / 20: 171.2k / 99.7k / 23k without ST And annuity loans are now more flexible, 2-3x free rate adjustments and 5% (10%) special repayment p.a. So what’s the nonsense with the interest payments? For owner-occupied housing you can’t deduct that from taxes, that’s only done for V&V! If you can afford the rate of €1,350: 15 years with 4% repayment. As a backup, a 30k BS. When this matures: 15k as special repayment in the annuity and 15k into the next 30k BS as a lump sum.

Hello everyone,

I am giving feedback once again with another variant:

Total project costs (including all incidental costs): €363,475.00
Equity to be contributed: €75,475.00
Financing requirement: €288,000.00

1. Construction financing with repayment €188,000.00
Fixed nominal interest rate p.a. 1.85 %
Effective annual interest rate 1.89 %
Fixed interest period until 30.05.2033
Repayment rate 3%
Repayment start 30.06.2018
Expected remaining debt after expiry of the fixed interest period €90,582.91
Total repayment expected by: 30.03.2047

€759.83 monthly installment

2. Bank advance loan (Bausparvertrag) €100,000.00
Fixed nominal interest rate p.a. 1.46 %
Effective annual interest rate 1.59 %
Fixed interest period until 30.05.2028
Total repayment expected by: 30.05.2028

€121.67 monthly installment

Bauspar account BSH €100,000.00
Expected allocation of Bauspar contract by 30.04.2028

€376.00 monthly installment

Initial net expense from your financing 1,257.5

After expiry of the fixed interest period in the Bauspar contract, just under 55k remaining debt remains, which is secured over 3 terms (a total of 16 to 23 years) staggered at 1.4 to 2.8% interest.

Thank you in advance for your opinions.

Best regards