Beginnings of a possible property | Questions about the building savings contract

Hello lilalu, if you know that you will need a follow-up financing in 14 years, you can already secure a loan with a reasonable interest rate now for a "small" fee (unlike in my case, as I have no idea when that might be)

Unfortunately, a forward you mean here is not yet possible. Maximum 60 months before the end of the fixed interest period.

Or rather, there is now an interesting situation: After 10 years from the start of disbursement, you have a legal right to terminate. That means you can redeem the financing (observing a notice period of 6 months). So a forward would already be possible now. Just not for 14 years from now, but in 4 years.

I assume that you are not aiming for the lowest costs, otherwise you would not have chosen a 15-year fixed interest period. So if you want security, such an early forward loan can help.

I assume that you are not aiming for the lowest possible costs, otherwise you wouldn’t have chosen a 15-year fixed interest rate. So if you want security, such an early forward loan can help.

You are not seriously advising to terminate a 15-year subsidized Z15 loan (presumably with an interest rate below 1%) five years early to replace it with a 60-month forward loan and significant interest surcharges? Please do us a favor and just don’t.

You’re not seriously advising to terminate a 15-year subsidized Z15 loan (presumably with an interest rate below 1%) 5 years early in order to repay it with a 60-month forward loan and significant interest surcharges? Please do us a favor and just don’t.

I am not advising anything, it was merely about the possibilities. If it is a subsidized loan (which was not mentioned at all here in lilalu’s post), then a forward loan absolutely makes no sense.

I’m bringing my old post back up... because I need your opinion. After 5 years we haven’t found a house and haven’t bought anything yet. Back then I took out the building savings contract, which now has about 25,000 saved and will be eligible for allocation next year. Here again are the conditions of the building savings contract:

Signal Iduna f60 including option for additional allocation

Building savings amount 100,000

Total payout balance + loan 100,000.00
Credit interest annually 1.00 %
Nominal fixed interest rate annually 2.00 %
Loan interest annual effective interest rate 2.25 %

What should I do next year with the building savings contract, just keep saving or terminate it? (Side note: we would want to buy a property immediately, but we can’t find anything suitable, and we don’t want to go over 1 million)

Continue saving and take advantage of the interest on the balance. If you find a property, switch the tariff (then the initial fee is not lost) and use it as a building block.

I'm not a banker or financial advisor, my layman opinion:
Normal risk tolerance for investments: Cancel, the loan interest rate is not good today and the credit interest rate isn't really good either.
Low risk tolerance for investments: Keep contributing, the 1% credit interest rate is not really bad, the loan interest rate could also be higher again in the next 5 years.
High risk tolerance: Get out, put everything into ETFs.
Very high risk: Put everything into Microsoft stocks.