Construction Financing - What Installment Amount to Choose in Financing?

Hello Steffen, apart from the building savings contract, I am on your side... I have also gone through building savings once (both the savings phase and the repayment phase). My experience: I found building savings the least attractive. On the one hand, you got little interest during the long savings phase. Elsewhere, you got much more. And in the end, internet brokers (e.g. Dr. Klein) also offered almost equally good building loan interest rates as the building societies! And as the icing on the cake, you have to repay completely very quickly (7...8 years), which results in a very high rate. I don't even want to talk about the high costs of a building savings contract... I then had enough of building savings. Best regards, Steffi.

I already know the rate and it is not that high. The Bausparer is simply a bet on significantly higher interest rates in 15 years. It's quite simple: low interest = bet lost, high interest = bet won.

Regards, Steffen

I was surprised that my bank only offers a max repayment of 5%.

What fixed interest period did you discuss with them?

What fixed interest period did you discuss with them?

10 years. Alternatively, there is also the option of full repayment.

Well, then significantly more than 5% doesn't make sense anymore. A full repayment borrower also only has around 8 or now 9%. And repaying with 6 or 7% and then extending the last 20,000 EUR for 3 years only causes disproportionately high costs.

Update: Financing will be signed today. The installment will be 1,155 €/month. Hopefully, it will be possible to manage this somewhat painlessly even during parental allowance phases. By the way, we have taken out a loan with special conditions for young families, such as the possibility to have made special repayments paid out again in "tight" times or to suspend repayments for a limited period after the birth of a child. Hopefully, we will never need this, but it reassured us.

Now it can start, and I will ask my further questions in the appropriate subforums for building.