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

I hope so: the offer includes at least 40% of the savings amount but a maximum of 60%. That means, as you already said, if I step on the gas more during the savings phase, I have less to repay during the loan phase. The repayment rate of 1% seems to be fixed in this home savings contract (which would be moderate in this case, as already mentioned). Or am I seeing this incorrectly?

Roughly calculated (without compound interest effect etc.):

After saving the 42,000€, you receive a loan of 58,000€
2.5% interest = 1,450€/year
Installment you have is 12x576.58=6,918.96
That means repayment would be 5,468.96€ in the first year
Based on the 58,000, that is over 9%!!!! annual repayment, so definitely not 1%
Based on the building savings sum of 100,000€, that is still 5.4% repayment.

That is exactly what I meant, that for the loan amount the installment is way too high.

For me, that makes no sense.

Put the planned building savings contract installment consistently aside from now on, then you will already have more equity when construction starts/purchase.

After that, put the planned building savings contract installment into the additional repayment of a regular loan and that’s that.

Roughly calculated (without compound interest effect etc.):

You receive a loan of 58,000€ after saving 42,000€
2.5% interest = 1,450€/year
Your payment is 12x576.58=6,918.96
That means repayment in the first year would be 5,468.96€
Based on the 58,000 that is over 9%!!!! annual repayment, so not 1%
Based on the savings amount of 100,000€ that is still 5.4% repayment.

That is exactly what I meant, that the installment is much too high for the loan amount.

Right! .. I also spoke of a monthly interest and repayment obligation of 1% of the building society loan (which the contract stipulates) would be about 600 euros monthly, which I would have to repay. Or?

My initial question or concern was that the building savings contract (specifically the one from Signal, see offer page 1) is not the right option for my project (interest rate security, planning certainty, flexibility, manageable costs)

I just can’t quite grasp whether a 1% repayment is high or not (I thought, as said, that would already be low because I also want to be finished at some point)


It makes sense in this respect that I assume that interest rates will not be in the 2% range in three years and I want to secure that. I am also additionally saving equity, so not putting all the eggs in one basket, if that is what you mean

I just can't quite grasp whether a 1% repayment is high or not (I thought, as I said, that it would be low since I want to be finished at some point)

I have just calculated a comparable offer from another building society. There, the repayment including interest is 0.4% of the savings sum (which would be €400 for you). However, the conditions are worse. But I dare to doubt that your offer is still valid at all. The online offer from Signal Iduna is currently at 3.5% loan interest.

Unfortunately, I am not allowed to post a link, but the 2.25% effective annual interest rate is still available.
So not that bad after all, with the mentioned conditions?!
That makes a difference of about 200 euros, that is a lot! But your offer can only be compared with the same conditions, right?