Current conditions 20 years fixed interest rate

Hello from Hamburg,

now I would like to ask you for your opinion.

Regarding the situation:

I want to take over my grandfather’s property.
For this, I would have to pay out my uncle and, in return, receive the other half from my father as a gift transfer.
The size of the property is about 1550m2
built on with a house from the 60s
standard land value 2020 = approx. 622,-€

Equity 180 thousand € + 60 thousand € in stocks.

The purchase price we agreed on amounts to 900 thousand €, so my price is 450 thousand € + incidental costs approx. 30 thousand €

I pay the incidental costs myself and would contribute 100 thousand €, so the financing volume to be raised is 350 thousand €.

The financing is in my name alone… monthly income 3200 € net

The mortgage lending value is below 50% in all offers due to the gift transfer.

Offers for 20 years

Commerzbank 350 thousand, rate 1367,-€ at 1.21% eff.

ING 350 thousand, rate 1387,-€ at 1.32% eff.

HUK Coburg life insurance, rate 1350,-€ at 1.10% eff.

Yesterday I already received a message from the advisor of Dr. K. stating that Commerzbank and ING will increase their conditions and the offer will only be valid until the end of next week.

The 1.10% eff. sounds very good to me; I am waiting for further info from the advisor…

What do you think of the conditions?

Best regards

The interest rates will rise, and looking at 20 years, it all sounds pretty fantastic. Waiting will not bring any advantage here. A 1350€ installment sounds okay, with 3200€ net income it still seems justifiable – will someone live in the house and share the costs? The general risk of sole financing remains, but this is countered by equity and a gift. I would get started.

Interest rates will rise, and looking at 20 years, it all sounds pretty wonderful. Waiting will bring no advantage here. A rate of €1350 also sounds okay, with a net income of €3200 it is just about bearable – will someone else live in the house and share the costs? The general risk remains with sole financing, but this is offset by equity and gifts. I would get started.

I will move in there with my partner and our children. However, I want to have the financing solely in my name, which according to the advisors is no problem.

The total household net income is therefore significantly higher but should not be taken into further consideration. At HUK Coburg, an allegedly free appraisal is necessary; the advisor is now trying to find out how this works.

Interhyp comes up with a purchase price value of about €770,000 and Dr. Klein with €1.15 million, which I was recently told not to care about…

Also consider full repayment loans. I secured an offer from Allianz last week before last for an effective rate of 1.02% with a 25-year full repayment term. My starting situation was similar to yours.

the 1.10% eff. sound very good to me, I am waiting for further information from the advisor…

So good that the bank (practically) does not make any money with it. Says the banker ;-)

Also consider full amortization. I secured an offer from Allianz two weeks ago for an effective rate of 1.02% with a 25-year full amortization. My starting point was similar to yours.

Good suggestion! Strangely, Allianz was far down the list with 1.48% among all providers…