Building savings contract or annuity loan - final decision!

2016-06-24 16:15:34

: "Breach of duty, especially default in payment, can among other things lead to extraordinary termination of the loan. In this case, the outstanding remaining debt from the loan becomes immediately due for repayment. If you are unable to make this payment, this can lead to the realization of collateral, in particular the property."

This should be stated in every loan agreement. Whether this also applies to the constructionsavings contract, I doubt based on the wording.

I just did some research on the websites. I can't find anything about it on SH. On WR it explicitly says that the installment for residential saving is flexible. Maybe it depends on the provider and perhaps even on the tariff.

2016-06-24 16:18:37

To examine the case in detail, the complete contract and all ancillary agreements, [AGB] and other general agreements, [ESIS] etc. are required.

I cannot imagine that a bank would offer an "endless" financing in this way.

I could imagine that somewhere there is a condition that, in addition to the advance loan, there is an obligation to save into the building savings contract at least with the regular savings rate (especially since the new guidelines are relatively clear regarding repayment and capital usage rights).

2016-06-24 16:20:46

LBS Tarif KlassikPlus

2016-06-24 16:23:58

Excerpt from the website:

** for an exemplary loan amount of €75,000 in connection with the conclusion of an LBS building savings contract under the KlassikPlus tariff. A processing fee of €750 as well as an annual fee of €9 apply; monthly savings rate €220. Minimum loan amount €75,000. Secured by a land charge (maximum loan-to-value ratio 60% of the mortgage lending value), resulting in land charge registration costs of €219. A lower monthly savings amount (at least €150) is possible, but this extends the savings period until allocation. Subsequent building savings loan with a fixed nominal interest rate of 1.95%, effective annual interest rate 2.21%, monthly interest and repayment contribution €375.
Lender/creditor: LBS Baden-Württemberg, Jägerstr. 36, 70174 Stuttgart.

2016-06-24 16:28:21

Excerpt from the website:

And that means, if I adhere to the agreed installments, there is no risk of a delayed allocation. Thus, my concern about a GaP is unfounded, right?

2016-06-24 16:28:53

: Nice that you mention the LBS product, but that is only decisive for the building savings contract, as well as the 2nd phase of your construct. What you need to know and look into are the conditions of the TA loan that is serviced with the building savings contract.

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Building savings contract or annuity loan - final decision!

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