Basic / Home Financing Split?

Thank you for your feedback! Yesterday's phone call sounded very good in terms of conditions and suddenly 25 years is possible. I am still waiting for the written offer, but anything between 1.1% and 1.3% fixed for 25 years seems very good to me, or am I wrong? I mean, currently the interest rate is low, but what if in 15 years it goes up to 2% or more, then that would already be significantly worse. Maybe I am thinking too conservatively. Please enlighten me

just please don't forget when it comes to the house around the corner!

there could also be a 5.0% there

Yes, that's roughly how we imagined it. KFW Energy Efficient Building with €120,000, of which €30,000 is a repayment subsidy. Then there is also the KfW Home Ownership Program, which is another €100,000. Additionally, a few small subsidies regarding the photovoltaic system and energy storage. I still need to ask the municipality in due course if they provide anything as well.

I have a question about this. Will the KfW part then be split by us or will the bank handle it based on the overall calculation?

Yes, that’s roughly how we imagined it as well. KfW Energy Efficient Building with €120,000, of which €30,000 is a repayment grant. Then also the KfW Home Ownership Program, which is another €100,000. Additionally, a few small subsidies regarding photovoltaic systems and energy storage. I still need to ask the municipality if they also provide anything when I have time.

I have a question about that. Is the KfW part then split by us or does the bank handle it based on the overall calculation?

The bank takes care of everything related to KfW.

Please note: The KfW Home Ownership Program is not really interesting at all. The interest rate is worse than the bank’s. We were advised against it by every bank.

just please don’t forget when you come around the corner with the house!

there could also be a 5.0% there

The 1.1 - 1.3 were for everything, so house and land. That’s what you meant, right?

The bank takes care of everything related to KfW. Please note: the KfW Home Ownership Program is not really interesting at all. The interest rate is worse than at the bank. Every bank advised us against it.

Ah ok hmm. Yes, I will see when I get the offer if that was included in the calculation. If not, then it's even better because then only the €90,000 from the Energy Efficient Building loan runs over 10 years and the rest with these conditions is safely over 25 years.

Ah ok hmm. Yes, I will see in the offer whether that has been taken into account. If not, it's even better because then only the €90,000 from the energy-efficient building will run over 10 years and the rest with these conditions will be secured over 25 years.

Exactly. And always keep in mind: with KfW you have no special repayment options or other flexibility. The only attractive thing is ultimately the repayment grant! You don’t get that with the home ownership program. That’s why it’s not attractive either.

Yes.. I always find a loan split quite interesting and sensible. You secure a very good interest rate for a short-term commitment (we also want to pay off the loan completely within 10-15 years at the latest through special repayments, etc.) and can then lock in the remaining capital long-term.