Evaluation of financing offer

Hello, I have received the first offer for our upcoming house purchase. Maybe someone can say something about the offered conditions. Framework conditions: House price 620,000 plus 1.5% plus VAT broker commission plus 35,000 inventory plus Bavarian property transfer tax and notary. Total 700,198 Equity contributed 204,000 The amount is split into 2 annuity loans Loan 1: Amount 130,000€ fixed interest period 10 years, 0.6% effective interest, rate 333 € monthly Loan 2: Amount 366,000€ fixed interest period 20 years, effective interest 1.29%, rate 1149 monthly. We still own a small apartment, which is not included in the equity mentioned above. We plan to sell it when the first loan expires. The proceeds should quite exactly cover the remaining debt of the small loan. The then “free” approximately 300 euros we would use to increase the rate of the large one. Thanks in advance for opinions

We also currently have a construction project over 700k, but with only 100k equity. We also want to have two components alongside KFW (100+50): 100k over 10 years as a full bullet loan and the rest over 10 years as an annuity loan. For the 100k we got 0.67% effective (slightly worse than with you despite the full bullet loan, probably because of less equity, I assume). For the rest we got 0.74% effective. I don’t know the conditions for 20 years, but the markup of 0.69 compared to your 10-year loan seems extreme to me.

It only makes sense if you pay it off faster. Otherwise, in 10 years you'll have a huge amount left to pay.

After ten years, hardly anything should have been paid off on the huge amount. I find that rather worrying.

We have a rate of ~3000. If you borrow half a million, you have to pay it back. After 10 years, it is still a lot, but you can then renegotiate the terms, which will definitely (in contrast to now) become senior.

10 years only makes sense if you repay. I personally find very little repayment