Error in financing?

Now you can calculate how good your offer really is

At least he got one at all – I remind you of the debts

So the lady had no concerns at all regarding the income and household situation in relation to the remaining debt of about 15k - which is really paid off quickly or does not really burden the total amount.

Due to the lack of equity, there is the EKED - which has an unpleasant interest rate, but 1. compared to earlier, it would have been a normal interest rate for construction financing and 2. special repayments would be made quickly.

I still have an open question about the building savings contract - special repayments of up to 5% annually are possible on the loan itself and of course more can be saved at any time - although repaying is certainly more sensible.

What exactly does that mean? If I have a loan amount of 100k and pay interest on it for the first 15 years and after one year I repay 5k - then 95k remain outstanding and the interest is also reduced directly, right?

At least he got one at all – I remind you of the debts

The saleswoman made him a financing proposal. That is still free of any acceptance/examination by BHW. The lady only sees her 1.3% commission, solely from the financing structure (the broker receives a maximum of €3,965 according to the BHW product data sheet) and just sold a house

so, just spoke with the lady and clarified everything and almost as I suspected.

: Did the good lady tell you how much you have to pay from the 15th year onward (assuming you then make use of the BHW loan)?

On my scratch paper it says about €1820-1920 per month including further servicing of the KfW loan.

And did the lady tell you that the building savings contract product has a nominal interest rate of 2.35% (the effective annual interest rate is however 2.51% – 3.08%) (according to the product data sheet). Often a RLV is mandatory (this is then included in the effective interest rate)

On the other hand, the total effective interest rate (i.e. interest of the "loan" in the first 15 years; combined with interest for the building savings loan for the last 15) for the two BHW ones is quite okay. 2.05% for the first, and 2.5% for the second (no guarantee)

Yes, it's not the best thing. Especially since you can also conclude a building savings contract "privately" at other addresses, possibly better. I don't want to badmouth it. However, here Henrik has to cover almost 2,000 plus the additional costs every month. I am also curious if the financing will go through as desired.

why 2,000 euros?

So the most important thing is exactly the point that it is a proposal, and indeed the first one. I'm not even saying that I naively accept it and think that it is the ultimate.

I will also talk to an "independent" financial advisor who can a) evaluate it and point out what is bad and of course also has other offers.

But I also think that the overall interest etc. is not entirely wrong.

My big problem is actually the "vicious circle" between the exact house contract and the actually required signature with the house provider and then the financing. If that then doesn’t fit or the last 50k have to be offered at a really bad interest rate, then you are in a pretty bad position.

Without the house, however, the bank cannot provide the money...

Your objection regarding the sample calculation and offer, that these are 2 pairs of shoes, probably just quickly sketched by the lady at the counter before the holidays, also occurred to me after my post.