Assessment of the first financing meeting

So now it’s finally getting concrete.

We were at the first bank (Sparda Hessen) on Wednesday and presented our plan.

We will still go to other banks or a broker, but we want to ask in the forum how we can assess our initial information from Sparda Bank.
On the one hand regarding the conditions, on the other hand about the proposed contract structures.

Total costs: €359,820 (Mortgage lending value according to Sparda €346,020)
Own contributions: €16,500
Equity capital: €73,000
Loan: €270,070
Desired rate: < €1,100

Unfortunately, Sparda only offers 15 years fixed interest on their own loans.
We had hoped for 20 years interest rate security.
Sparda also only offers repayment changes for a fee and increasing the repayment reduces the special repayment.
Therefore, preferably < €1,100 and special repayments if possible.

We received 3 "financing proposals" (they are not allowed to call them offers without Schufa) which I have summarized as follows:

Option 1 - Annuity loan 15Y & Kfw55 20Y [U] (Total: €270,000)[/U]

1) Annuity loan 15 years fixed interest
- €170,000 loan
- 1.52% nominal interest / 1.53% effective interest
- Repayment rate 3.00% (below that it costs an interest surcharge)
- 5% special repayments per year included
- 3 months interest-free commitment fee (then 3% p.a.)
- optional 0.04% interest surcharge for 12 months interest-free commitment fee
- Monthly rate €640.33
- Remaining debt after 15Y = €83,604.31
- Repaid in 15Y = €86,395.69
- Interest in 15Y = €28,863.71

2) Kfw 55 (program 124) 20 years fixed interest
- Conditions estimated, only available from 01.04.2016
- €100,000 loan
- 1.50% nominal interest / 1.51% effective interest
- Repayment rate 3.30% (minimum?)
- 12 months interest-free commitment fee (then 3% p.a.)
- 1st year no repayment (interest only)
- Monthly rate €400
- Remaining debt after 20Y = €27,138.89
- Repaid in 20Y = €72,861.11
- Interest in 20Y = €19,471.39

Total rate year 1 = €766.16
€640.33 annuity loan
+ €125.83 interest only Kfw 55 (153)

Total rate years 2 - 15 = €1,040.33

Rate from year 16 = €400 + ???
€400 from KfW 45 (153)
+ follow-up financing remaining debt €83,604.31 from the annuity loan

Rate from year 21 = ???
??? € follow-up financing remaining debt €83,604.31 minus 5 years repayment from the annuity loan
+ ??? € follow-up financing remaining debt €27,138.89 from the KFW 55 (153) loan


Option 2 - Annuity loan & KFW55 20Y and KFW home ownership 10Y [U] (Total: €270,000)[/U]

1) Annuity loan 15 years fixed interest
- €150,000 loan
- 1.52% nominal interest / 1.53% effective interest
- Repayment rate 3.00% (below that it costs an interest surcharge)
- 5% special repayments per year included
- 3 months interest-free commitment fee (then 3% p.a.)
- optional 0.04% interest surcharge for 12 months interest-free commitment fee
- Monthly rate €565
- Remaining debt after 15Y = €73,767.94
- Repaid in 15Y = €76,232.06
- Interest in 15Y = €25,467.94

2) KFW 55 (program 153) 20 years fixed interest
- Conditions estimated, only available from 01.04.2016
- €100,000 loan
- 1.50% nominal interest / 1.51% effective interest
- Repayment rate 3.30% (minimum?)
- 12 months interest-free commitment fee (then 3% p.a.)
- 1st year no repayment (interest only)
- Monthly rate €400
- Remaining debt after 20Y = €27,138.89
- Repaid in 20Y = €72,861.11
- Interest in 20Y = €19,471.39

3) KFW (program 124) 10 years fixed interest
- €20,000 loan
- 1.40% nominal interest / 1.41% effective interest
- Repayment rate 10.43% (full repayment)
- 12 months interest-free commitment fee (then 3% p.a.)
- 1st year no repayment (interest only)
- Monthly rate €197.20
- Remaining debt after 10Y = €0
- Repaid in 10Y = €20,000
- Interest in 15Y = €1,509.10

Total rate year 1 = €714.33
€565 annuity loan
+ €125.83 interest only KfW 55 (153)
+ €23.50 interest only KfW (124)

Total rate years 2 - 10 = €1,162.20
€565 annuity loan
+ €400 KfW 55 (153)
+ €197.20 KfW (124)

Rate years 11 - 15 = €965
€565 annuity loan
+ €400 KfW 55 (153)

Rate from year 16 = €400 + ???
€400 from KfW 45 (153)
+ follow-up financing remaining debt €73,767.94 from the annuity loan

Rate from year 21 = ???
??? € follow-up financing remaining debt €73,767.04 minus 5 years repayment from the annuity loan
+ ??? € follow-up financing remaining debt €27,138.89 from the KFW 55 (153) loan


Option 3 - Annuity loan & building society savings contract (Total: 274,000 €)

In this option the advisor calculated with €4,000 more loan.
I only noticed this at home.

1) Annuity loan 15 years fixed interest
- €101,000 loan
- 2.15% nominal interest / 2.17% effective interest (because subordinate!)
- Repayment rate 3.00% (below that it costs an interest surcharge)
- 5% special repayments per year included
- 3 months interest-free commitment fee (then 3% p.a.)
- optional 0.04% interest surcharge for 12 months interest-free commitment fee
- Rate €433.46
- Remaining debt after 15Y = €47,072.74
- Repaid after 15Y = €53,927.26
- Interest in 15Y = €24,095.54

2.1) Schwäbisch Hall building society saver 15 years interest only
- €173,000 loan
- 1.42% nominal interest / 1.51% effective interest (including all costs and account fees in the interest/saving phase)
- Monthly interest rate €204.72
- Remaining debt after 15Y = €173,000
- Interest in 15Y = €36,849.60

2.2) Schwäbisch Hall building society saver 15 years / 1 month saving
- Monthly saving rate €416 ("regular saving rate" would be > €800)
- Balance after 15Y = €73,904.23

3) Schwäbisch Hall building society saver 13 years & 5 months repayment
- €99,095.77 loan after offsetting the balance
- 2.85% nominal interest / 3.10% effective interest
- Repayment rate 3.00%
- Monthly rate €742
- Remaining debt after 13Y/5M = €0
- Repaid in 13Y/5M = €99,095.77
- Interest in 13Y/5M = €20,395.91
- As far as I know, an additional €1,932 account management fee (12€ per month) is charged here. In the saving phase these are supposedly included in the effective interest rate.

The building society saver is a "Fuchs2 / FuchsImmo1 (XV)"

Total rate years 1 - 15 = €1,054.18

Rate from year 16 = €754 + ???
€742 from the building society saver
+ €12 account management building society saver
+ follow-up financing of the remaining €47,072.74 from the annuity loan

I forgot to mention that we actually want to sign only in May/June and need 12 months interest-free provision period (prefabricated house in planning with delivery earliest in Mar/Apr 2017 + 3 months interior construction). Even then, we will still pay a little interest on the provision, but the big items will definitely have been drawn down by then.

For the annuity loans, we will have to accept a 0.04% surcharge. It should not amount to more than 5-6 € in the initial monthly installment. Over the entire 15-year period, about 860€ for option 1. For the others, somewhat less due to the lower loan amount.

Personally, I tend to option 1 purely instinctively. The rate is comfortable and I understand the structure.

Option 2 has a rate that is too high for me and the advantages of the small KFW 124 loan are probably limited.

And option 3 somehow seems suspicious to me with all the building savings stuff and my gut feeling says no.

But I can't manage to sensibly compare these very different options in Excel.

Hello! First of all, hands off constructs you do not understand (Bausparvertrag, Riester). 3% repayment in option 1 is more than reasonable. Otherwise, due to the 20 years, contact common intermediaries.