Bridge loan before allocation of home savings contract

Hello,

On November 1, 2024, my home loan savings contract with Wüstenrot will be eligible for allocation. The loan repayment / refinancing - payout of the savings amount would take place on December 31, 2024.

My advisor has created the following loan offer:

Bridge loan (5% interest per month!) of the entire savings amount: August 1, 2024 to October 31, 2024 Provision interest would accrue from November 1.

This bridge loan would be repaid upon allocation of the home saver (on November 1) and then only the home loan would be paid off.

My advisor said that the interest for the bridge loan would not matter here, as I would not pay out the bridge loan, but it would only be available and then repaid from the home saver on November 1. No extra costs would arise for me. She always does it this way so that the banks can communicate with each other and everything proceeds on schedule.

Does anyone know this, is this normal? I don’t want to have to pay interest. I also asked the advisor about this and she reassured me and explained everything.

Thank you very much Markus

I don’t understand anything at all. This is all completely confusing.

P.S. I am a banker

Hello... Oh sorry.

Step by step again.

End of fixed interest period for current mortgage: 12/31/2024

Repayment of the remaining debt through a building savings contract by 12/31/2024

Allocation of the building savings contract: 11/01/2024

Meine Bausparberaterin hat mir folgendes Paket empfohlen zu machen:

Bridge loan (5% interest per month!) of the entire building savings amount:
08/01/2024 to 10/31/2024

This bridge loan would be fully repaid upon allocation of the building savings contract (on 11/01) and then only the building savings loan would be paid off.
However, the payout of the building savings amount would only be on 12/31/2024.

My advisor said that the interest on the bridge loan would not matter here, since I would not have the bridge loan paid out or drawn, but it would only be available and then be replaced by the building saver on 11/01. There would be no extra costs for me. She always does it this way so that the banks can coordinate with each other and everything goes according to schedule.

I think this is a bit easier to understand. :-)

I think this is a bit more understandable. :-)

Not for me:
If the bridging loan is never drawn, what’s it good for at all?

I don't understand? What do you need this bridge loan for?

End of interest rate fixed term of current home loan: 31.12.2024

Repayment of the outstanding balance through a building savings contract as of 31.12.2024

Allocation of the building savings contract: 01.11.2024

If the old loan ends at New Year's Eve and the building loan is also paid out on New Year's Eve and you are supposed to take out an unnecessary bridging loan, you should ask the advisor what kind of stuff she has been smoking. And why should the bridging loan start in the past?

There is only one single reason for this. Commission for the advisor to buy new stuff to smoke.