Annuity loan with building savings

Hello everyone,

I have the following offer from a bank; the house is completely financed (360,000 €), equity of 130,000 € flows into additional costs and renovation.

Age: both 26, civil servants, monthly net income 4,320 € (the woman currently and for the next 4/5 years works only half time)

Offer consists of two parts:
I.)
Loan amount: 260,000 €
Nominal interest rate: 1.65 %
Nominal interest rate fixed until: 2036
Effective annual interest rate: 1.68 %
Expected end date: 2053
Initial repayment: 2.46 %
Special repayment p.a.: 13,000 €
Possible residual debt after fixed interest period: 154,727 €
Provision interest p.a.: 3.0 from 12/2022
Monthly burden: 890 €

II.) EXISTING [Bausparer]
Loan amount: 100,000 € (7,000 € saved)
Nominal interest rate: 1.3%
Nominal interest rate fixed until: 2036, thereafter 1.85%
Effective annual interest rate: 1.70%
Expected end date: 2049
Initial repayment: 0 %
Special repayment p.a.: -
Possible residual debt after fixed interest period: 100,000 € (at least 33,000 € saved by then; 67,000 € repaid from 2036)
Provision interest p.a.: 3.0 from 12/2022
Monthly burden: 258.24 €, of which 149.91 € savings contribution

Monthly rate of approx. 1,148.24 €, which should be increased after a few years.

What is your opinion on this?

In my opinion, bad conditions. With a 15-year fixed interest rate, 2 civil servants, and the equity, the interest rate for 15 years should be between 1.0-1.2. I also don't necessarily find the combination with the [Bausparvertrag] necessary. I would prefer a regular loan of 100k for 10 years at 0.7-0.9 and then see what is possible in 10 years.

What is important to you? Do you want interest rate security? Or rather a low interest rate?

Of course, both would be nice, preferably security…

I had a similar construct and calculated everything. The result was approximately that I save money with the building savings construct (due to the later lower interest rates) if the interest rate after 15 years is above about 5%. I considered that unlikely for myself and discarded the offer.

1.65 and 1.85% for 15 years is too expensive. The Bauspar contract has a few disadvantages (Abschlussgebühr) which are partially not included in the effective interest rates but are waived or have already been paid by you. Additionally, in the first 15 years no repayment is made, only interest-free? savings. Furthermore, you only get the low interest rate with very high repayment, which should be possible within 15 years. Advantages are the long interest rate security and the "Sondertilgungen" during the saving and repayment phases.