Building savings contract and building savings loan - home ownership financing

Hello everyone,


We are currently planning to purchase a single-family house. Approximately 50% of the property needs to be financed. The amount to be financed is around €165,000.


Available is an assignable [Bausparvertrag] of €75,000 and about €10,000 in equity.


We have now received the following offer:


Convert the [Bausparvertrag] into one with €165,000 at 1.9% interest.
+ Mortgage of €165,000, 2.45% interest


Mortgage term 10 years. No repayment, only interest is paid.


After 10 years, the mortgage will be redeemed through the [Bausparvertrag] and paid off over another 10 years.


Does this plan make sense in your opinion, or are there better approaches?
Are the conditions acceptable?


Monthly burden in both cases is about €750 to €800


Thanks in advance for your feedback!


Best regards
Stephan

Paying almost €50,000 in interest over 10 years without having paid off anything at all does not sound good to me.

If only €10,000 equity, where does the other 50% of the purchase price come from?

What is the interest rate of the [Bauspardarlehen] for the €75,000? How much credit is that?

Are there additional fees for increasing the [Bausparvertrag]? How high would the [Bauspardarlehen] be in that case?

I meant €40,000 interest ...

Hello

This is an inheritance case. There are 2 heirs (each holds 50%). The second heir now has to be paid out.

The current interest rate for the building savings loan is 3.75%
approximately 30,000 euros have been paid in (I don't have the documents at hand right now)
Apparently, there are no fees for the increase.

Best regards
Stephan

Paying almost 50,000 € in interest for 10 years without having repaid anything at all does not sound good to me.

If only 10,000 € equity, where do the other 50% of the purchase price come from?

What is the interest rate of the building savings loan for the 75,000 €? How much credit is that?

Are there any fees again for increasing the building savings contract? How high would the building savings loan be?

I would consider a regular loan and get offers.

The interest rate of the [Bauspardarlehen] is currently of course high, but if you fully use the existing [Bausparvertrag] and then only need an additional €90,000 in loans, you will certainly get a good interest rate. You could be finished in 10-15 years and – above all – the interest expenses over the entire financing will probably be significantly lower than with your offer.

Or use [BS-Guthaben] (depending on conditions), so €165,000 - €30,000 - €10,000 (?) = €125,000, there should also be a good interest rate.

The installments should then be about the same.

I just think that the interest for the first 10 years is simply "for nothing".

I see it similarly to backbone. Securing the interest rate with a home savings contract makes no sense given the amount and the planned installments. Either use the home savings contract and finance the difference with an annuity loan, or it might even be more sensible in some cases to completely dissolve the home savings contract. In my case, there is an additional special interest rate of 2% over the term if the loan is not used.