Does home financing with Wohnriester make sense?

Hello,

I am new to this forum and plan to build a house in the future! Currently, I am dealing with the financing.

We need a loan amount of: 140,000€
(enough equity available)

The house bank suggests splitting the loan amount as follows:

1. Normal loan (90,000€) for 10 years
Interest rate: 4.0% / Repayment 1% / Special repayment 10% (planned 4000€/a)

2. Bauspar-Wohnriester (pre-financing) (50,000€)
(1 child 2007, 1 child 2009)
Term: 20 years and 9 months

Pre-loan: 3.9%, Savings rate: 2.5%
Savings plan: 133 months 287.5€

That means Bauspar credit balance after 133 months 23,770€ (incl. Riester contributions)
Bauspar loan 26,230€

Repayment plan: 116 months 218€ (of which 2.95% interest)

My calculation: 133x287.5€=38,237.5€
116x218€=25,288€
Closing fee: 500

Total costs (incl. 50,000€)=64,025.5€ Sounds good! But is there a catch? After all, no one wants to give anything away!

Now my question:
Does it make sense to finance with Wohnriester or
is it better to finance the 140,000€ in the usual way!

Thanks in advance!

Hello,

...Does it make sense to finance with Wohnriester or
is it better to finance the 140,000€ in the usual way!

From the perspective of state subsidies alone, initially yes. But if the house is ever sold, utilized, rented out, etc., the subsidies must be repaid unless the amount is reinvested in a self-used property. The later taxation is also not negligible. With moderate income and pension expectations, one should consider it more closely. Not only the house bank offers Wohnriester! So compare. The negative aspects of a Bauspar advance loan are compensated by the Riester subsidy. Without Riester, I would advise against it. On the other hand, I currently consider a Bauspar contract without an advance loan to be sensible, as we currently have a decent low interest rate environment. However, not in high interest phases.

best regards

For a home savings contract, after allocation, a loan fee of about 3-5% applies. Generally, I would not recommend the BSL, as the costs are simply too high -
- contract fee
- loan fee
- account management fee
- magazine costs
We once calculated that with these costs and an interest rate on the balance of 2.5%, we only get 0.5% as credit.
With Riester, this is initially offset by the subsidy. But what happens later, when the house is built and I reach retirement? Right now, this cannot be estimated, as the legal situation is constantly changing. What will become of it in 30 years?