Building savings loan vs. annuity loan

Good day,

I am planning to purchase a property worth 260,000€

I now have the following question: which financing model makes the most sense. The typical financing through the house bank is being considered, and on the other hand, through a financial broker using the building savings loan model.

Offer from the house bank

Amount 260,000
Repayment 2%
Effective interest rate 2.58% with 10 years fixed interest period
Duration 32 years

Monthly rate 997€

The broker's offer will arrive today

(50000KFW+210000Remaining)

Can you give me a tip on what is "future-proof, affordable and also the best"?

After 10 years, the remaining debt is still high. With the low interest rates, terms of 15, 20, or even longer are reasonable. After 10 years, you have a legally anchored right of termination, which you could use if the interest rates are even lower than today in 10 years. If the interest rates are higher, you'll be happy about your long-term loan with a low interest rate.

With home savings, you first save up. The interest during the saving phase is probably below the inflation rate, so it's money destruction. For later, a low interest rate is tempting, but whether it’s still worthwhile including fees, closing costs, etc., you need to have calculated.

Go to Interhyp or Dr. Klein. There you sit at the computer and see which offers from various banks and insurers suit you. Have all possible offers from Interhyp or Dr. Klein printed out or sent by email and then compare them at home calmly. Just one offer from a broker is a bit too little.

Regards
klblb

Hi
check out Stiftung Warentest.
There are comparison calculators available for download, with which you can compare, for example, a standard annuity loan with a building savings loan and a preliminary loan. We decided on the latter due to a favorable offer, in combination with KFW loans.