Conditions for Riester home savings contract - What interest rate?

That may all be true, but as a borrower, I actually don’t care what happens in the background.

The bank gives me 100,000 euros; in the given case, I then have to pay 225 installments of 512 euros each.
The amount is fixed, so there are 2 parameters that interest me.

The monthly installment amount for a defined term or
the term for a defined installment amount

Accordingly, I can simply compare the building savings contract (Riester or not) with other types of loans. And ultimately, as a borrower, I don’t really care how the money is wasted in the background as long as I find the optimal combination of the mentioned parameters.

Well, you’re doing the Riester plan because it is subsidized. You have to pay back this subsidy in the end. So you have to include the housing promotion account in the calculation. The entire subsidy accrues interest at 2% per year until retirement. And that even if you have finished paying off years ago. That adds up. Either you pay the taxes on the subsidy after retirement or you pay it all at once. But for that, you have to set aside something every year and month. The money is gone in the end, it just must not be forgotten.

Well, you do the Riester pension because it is subsidized. You have to pay for this subsidy in the end. So you have to include the housing subsidy account in the calculation. The entire subsidy is interest-bearing at 2% per year until retirement. And that even if you have been finished paying off for years. It adds up. Either you pay the taxes for the subsidy after retirement or you pay in a lump sum. But for that, you have to set aside something every year and month. The money is gone in the end, you just must not forget it.

Oh, I see ;) but Joichi doesn't want to hear that ;)

You probably won't believe it, but Jochi is well aware of that :-). I didn't write for nothing that the pros and cons are known. The amounts to be repaid are manageable and at the appropriate age, with a paid-off house and grown-up children, can be saved up in no time. Just so we're clear, I don't necessarily need a Riester contract, for me it is purely a matter of calculation whether it is worthwhile or not. However, I found the offer quite attractive and in my opinion worth examining more closely.

For a home savings contract, the interest rate is certainly good. However, since no other data such as age and equity ratio are known, it is certainly difficult to make a comparison here. Even if the disadvantages are known, if one wants to speak of a good or bad offer, the amount of deferred taxation should be calculated and factored in. Likewise, the question is whether one has so far done a Riester pension and how one can alternatively build up a retirement provision. Without exact data, it is simply difficult.

If I ask: is an interest rate of 1.6% good, everyone will say yes who assumes 100% financing and 20 years fixed interest. But everyone will say no who assumes 10 years fixed interest and 50% equity. A home savings contract is even more difficult to evaluate because much more goes into it.

I always thought a BS-Riester only goes up to 80,000€, are you sure that you don’t have two contracts where the subsidies of both partners go in?

Age 37 years
Equity ratio ~40%
Term 20 years
The deferred taxation is stated in the offer as ~10,000, based on a tax rate of 25%
Retirement provision is company-based, absolutely sufficient, the previous Riester is used as equity ~25,000
The offer is only for one Riester, there are other offers for my wife, as the advisor sounded they must also run separately due to the subsidies.