Construction financing | Is the procedure good? Your opinion and tips

therefore my two lines above are also to be seen, that it is probably certainly different with you or with us
But certainly others can help.

In the past, building savings contracts had a 6-month notice period upon termination. You had to wait this out or pay a penalty of 0.5% per month on the balance, meaning a 3% loss. I don’t know if this is still the case with today’s contracts, but you are also talking about older contracts. You should pay attention to this in case of early termination! Such things can exist. On the other hand, many building savings customers are probably glad to be rid of a few well-interest-bearing contracts.

Good morning everyone,

On Friday we had our final bank appointment, or rather the appointment with the building savings contract advisor.

We were offered the following:

- split the current building savings contract and thus within three months one could access the paid-in money without problems and the loan if it would be needed.
- increase and save the other part of the building savings contract to €50,000 or €100,000 to secure the good conditions on day X of the construction financing. This building savings contract could then be used as a TA loan on day X or the saved money withdrawn. However, this would have to be decided depending on the current interest rate situation.
- Furthermore, we were now also advised to conclude 2 Riester building savings contracts of €50,000 each. IMPORTANT: I am not a fan of Riester and was told that this Riester building savings contract simply allows subsidies but you do not have to make use of them. Then you have no retroactive taxation and no housing promotion account. However, you would secure the good conditions of the loan interest rates.

These would then all be modules that would be incorporated into the construction financing depending on the interest rate situation.

Doesn't sound completely crazy now.

Did the consultant inform you about ALL the costs incurred? I see a total of about 1500 to 2000 euros plus X for the one-time costs of the division.

Sounds not completely crazy now.

Did the advisor inform you about ALL the costs that will arise? I see a total of about 1500 to 2000 euros plus X for the division one-time costs.

Yes, the creation costs of the building savings contract are also known from other contracts. 1% of the loan amount is to be paid as a closing fee.
Since I currently also have another building savings contract, 3 of them or rather 4 over a total amount of 200,000 euros should be sufficient, I think.

Since one is currently only being divided, only the remaining costs arise there. The other is already being taken into account here. For the Wohn Riester building savings contract, 100€ are automatically deducted annually; these do not have to be paid all at once.

For me, as written, it was new that these "Wohn Riester" building savings contracts are not necessarily subsidized and that there is then no additional taxation in old age as well as no housing promotion account. I always assumed that as soon as it is a Riester contract, these points also apply.

What I still haven't quite been able to, well, classify is the mentioned TA loan. I understand it as meaning that for the term (saving and repayment period of the loan) you have a complete interest on, for example, the closing sum of 100,000 euros. On day X, a comparison is made (depending on the interest rate situation) between TA or annuity loan, which is better. With the annuity loan, the interest decreases with repayment of the amount, and with the building savings TA loan, you always pay, for example, over 24 years the interest for 100,000 euros. If the interest rate for a loan in 2 years were, for example, 4%, the TA loan could probably also be the cheaper option.

Have I understood that somewhat correctly? ops:

Without Riester subsidies, a Riester contract really makes sense. Thumbs up. Sorry, nonsense.

And 100 euros a year makes 1,000 euros in 10 years, and that with 50,000 euros BSS... Respect...

And if the interest rate is 1% in 2 years, the TA loan is the most expensive option.... Honey around the mouth...

What the peasant doesn’t know, he doesn’t eat....

Very many numbers with a lot of opacity. And the seller of course presents his product as if it were the solution.

Counter question: Why then do not all smart heads finance like this...?