Construction of a single-family house --> Financing??

hi

we would like to build a single-family house (kfw70)

the architect says that the total costs (incl. land) will be €295,000

we have already paid for land, notary, water connection

and have about €90,000 equity left (plus some reserves).
So we need to finance €165,000

People: 1 man (employed), 1 woman (currently on parental leave), 1 child born in 2011

how could our financing look like?

I want to be as safe as possible, so that I don't have to pay 8% all at once after 15 years

one bank offered us
€50,000 KFW 1.25%
€115,000 building savings contract (2.86% effective) --> no Wohnriester (the bank also doesn’t do that!)
means that everything is fixed (except for the kfw)
unfortunately €1,150 closing costs for the building savings contract

should one do something like that?
or better on three components
annuity loan, building savings contract and kfw?

Your information is very sparse. For example, there is nothing about what you want/can pay monthly as a rate.

My personal opinion:
Building savings contracts rarely pay off. They are more meant to secure low interest rates in the long term.
The effective interest rate is not comparable with the interest rates for annuity loans, because with a building savings contract, repayment is not made initially, but rather savings are accumulated in parallel to the minimum balance interest rate.
I suspect the actual effective interest rate over the building savings contract including repayment deferral loans is slightly above 4%.
With an annuity loan, you repay much more during the fixed interest period with a comparable monthly rate.
Only when the fixed interest period for a comparable annuity loan expires, the interest rate has risen sharply, and a large remaining debt still exists, will a building savings contract ever pay off. If the remaining debt is too low, or the interest rates do not rise as predicted, a building savings contract will never pay off.

You have more than 90,000 € in equity + land. You must have somehow saved this (unless it was inherited or gifted). So the income so far cannot have been that bad. The 50,000 € is a KFW loan for which the fixed interest period expires after 10 years. The risk of an interest rate increase for the remaining debt from the 50,000 € is still manageable.
The remaining loan is then 115,000 €. Aren’t you able to repay most of the 115,000 € in 15 or 20 years? There are currently fixed interest periods of 15 or 20 years at a fairly good interest rate. Even if a small remaining sum is still left, an 8% interest rate wouldn’t shock you then.

From the (albeit sparse) information, I personally don’t believe a building savings contract will ever pay off for you.

Therefore, the general advice is: Definitely go to a financing advisor and have various options calculated.

If you repay the 165,000 with €1000 per month as an annuity loan and around 3.5% interest, you will be finished after 19 years.

So go to a financing broker and have them find a 15-year contract where the interest rates are below 3.5%. That should definitely be possible.
With similar equity, we took out a loan of 250,000 fixed for 20 years at an interest rate of 3.1%... concluded in January 2012. And the interest rates have since fallen even further.

This whole fiddling around with [Bausparverträgen] only makes sense if the loan amount is higher. Especially since this processing fee is increasingly being declared illegal by courts.

hi

first of all, thank you very much for your answers

we are both 33 years old
and have been working for 13 years
we have thought that we want to pay 650€ per month
plus one-time payments (like, for example, Christmas bonus)
we didn’t want to pay more monthly at first, because we don’t know yet when and how many hours my wife will start working again (and on the side, we also wanted to still have some money to live on)

too bad
wanted to edit more
somehow doesn't work
we have two other offers from different banks
I'll post them here later
best regards

The effective interest rate is, by the way, not comparable to the interest rates for annuity loans, since with the building savings contract repayment does not take place initially, but savings are accumulated in parallel with the minimum balance interest rate.
I suspect the actual effective interest rate over the building savings contract including the deferred repayment loan is just over 4%.

hi
how can I find out whether the building savings contract is at 4%?