Construction financing proposal, opinion?

Hello What do you think of the financing proposal? We would like to know if the proposal is okay since building society loans are being concluded with the financing. Best regards About us: -How old are you? 24/28 -Are there children? 1 -Are more children planned? Another one -How many hours do you work? 40h/week and 18.4h/week -What income do you have (gross/net)? Both incomes together 3200€ -How much child benefit do you receive? 194€ -How much equity do you have? 15,000€

For new construction or existing property?
How do you yourself find the financing proposal?

The building savings contract's fixed interest period ends in 2028 and in 2038, so it is only eligible for allocation 10 years later. Also interesting :p.

Where will interest rates be in 10 years? Do you know that?
Why take a building savings contract then! Have you also calculated a plain ordinary annuity loan? If not, why?

EDIT: Then a bullet KfW loan with a building savings contract. Is that financing for an investment property?

Please change the financing broker!!!!

I agree with zaba

I have to admit we have no idea what to make of it. It’s about a new building. No, we have not had calculations done, we trusted our financial advisor because it is assumed he does it more often and will give us a good offer. We will live in the house ourselves, it is not an investment property. If we go to someone else for a loan now, should we then say they should calculate an annuity loan for us?

Always choose a financing option that you understand and can follow. That way, no one can confuse you with fancy talk. Yes, the classic annuity loan is a very transparent thing, easy to grasp. Bullet loans are also easy to understand, but very specific. Actually only reasonable if you already have the capital, but for various reasons cannot or do not want to access it yet, and as long as you only pay interest, the capital is then repaid in one lump sum. But if you have to save it up first, annuity is clearly better, because with it the interest portion decreases and the repayment portion increases over the term. Karsten

A second opinion is certainly advisable. Sometimes there are differences between brand-bound and independent advisors. The temptation to provide commission-based advice unfortunately exists.