Change repayment rate - bank now requires new documents

Has he already posted that as a quote, what exactly is stated in the contract? I must have overlooked it ;)

I honestly don’t. If I change my repayment from the current just under 3.5% to 1%, the duration for the complete repayment increases to 70 years. Then I would be 110. A bank must reject that as unrealistic, unless the borrower is really in financial distress and needs to reduce the installment for a certain period for that reason.

And honestly, I don’t understand the problem there either. Our capital service is designed so that we could also manage it with a pension. The bank still has the registered mortgage as security, and if the borrower dies before full repayment, the house, with all rights and obligations, passes to the heirs.

By the way: Auto Europa Bank grants car financing to 80-year-olds with a 60-month term.

Has he already posted a quote of what exactly is stated in the contract? I must have overlooked that ;)

The contract does not provide any details about the range in which the repayment can be changed/is allowed to be changed, only that it is free twice and then costs €100 processing fee for each further change. But as I said, in online banking the selection is preset and 1% is the lowest value in the selection list that I could choose.

I called my former broker/financial advisor for the financing this morning and he said it's no problem at all, just submit the documents and it will go through.

Then I would be 110.

So what? Your children will only inherit the house along with the loan. As long as the loan-to-value ratio is adequate, the bank has no risk.

I called my then broker/financial advisor for the financing this morning and he said, it's not a problem at all, just submit the documents and it will go through.

If your financial situation hasn't significantly worsened, I also think that at worst they might just not want to go down to 1% (because of the term or something) but otherwise you basically don't have to fear anything (note: layman's opinion). (Basically in the worst case it stays as it was, but a reduction is quite possible) Otherwise, most loan agreements also contain a clause that you have to report financial deteriorations (which many don't do and the bank usually doesn't care much as long as they get their money every month as agreed) but maybe they always check this pro forma first in case of any change anyway? (I wouldn't be surprised if they were legally required to do so, but I have no idea if that's the case or not)

We have also reduced the repayment to 1% and instead are saving in a [Tagesgeld] account with a significantly higher interest rate. No inquiries were made to us at all. This is exactly ideal for homebuilders from 2 years ago and earlier with interest rates just above 1% and now [Tagesgeld] interest rates of 3-4%.