Change repayment rate - bank now requires new documents

I did the same thing 2 years ago and save the difference in fixed-term deposits. With 4.5% fixed deposit and 0.5% loan, there isn't much to think about. And I trust myself not to recklessly spend the money in between. The bank didn't care, just approved it - of course, it's also in the contract and I can even switch once a year free of charge.

Aren't any of you afraid that at some point there will be another currency reform that converts assets differently than debts?

I don't know what you mean, but whatever it is, it doesn't happen overnight.

Hyperinflation devalues debts quite effectively. What is half a million on the house when a loaf of bread costs billions? This is a problem for institutions that live off lending. And with what money would banks still grant loans after a currency reform? After a currency reform following hyperinflation, debts and credit balances are usually transferred at different rates. Banks have assets again and receive money every month. At the same time, they are practically rid of liabilities.

Well, anyone who believes in such a scenario should better quickly fill the basement with canned goods. That is not a rational approach to current asset management.

Your amazement probably relates to this?!

By the way, I also ran through this calculation last month and spontaneously increased the repayment rate after a few quick calculations ;)

About €40 more repayment per month… as a result, we won’t be done with the financing in 10 years, but already in 4-5 years.
For us, it is not a competitive sport to generate as much interest as possible, but rather to get by alone in old age, consequently to pay off a burden.

But of course, like my constant talk, this is always to be considered individually. Whoever knows that they will earn twice as much in 10 years as now has a different perspective than someone for whom nothing will change – for whatever reasons.

A daily allowance account is of course also used by us (we are not unrealistic), but certainly not with €40/month or €480 annually… that should remain in the financing so that, as an annuity loan prescribes, at some point much more is repaid than is paid in interest.

And that’s why I still stick with the OP, to leave the loan as it is or even increase the repayment (yes, yes, it doesn’t hurt, but does something positive with the loan) and invest everything else in the 4- or 5-digit range.