Evaluation of financing offer

Well, we can only sell the apartment in about 5 years to avoid capital gains tax. And then the proceeds will probably correspond to what remains of the 10-year loan. If I were to pay down more, I should logically do that with the more expensive loan, shouldn't I?

We have now almost decided on a different offer.

Only one large loan. Amount €496,000, 20 years fixed interest period, installment €1,600 per month (2.83%), after about 8 years a special repayment of €100,000 is agreed (sale of the apartment). Nominal interest rate 1.04%, effective 1.06.

Looks good. Great interest rate, no complex structure! That's how I would do it too. The repayment is a bit too low for me, but you should determine that based on your income situation. That you managed to agree on the special repayment is of course perfect! Is the special repayment optional for you or is it fixed and a must from the bank’s perspective?

How high is the remaining debt after 20 years? It should also be a very manageable amount.

If one assumes that we do not make any special payments except for the 100,000, 72,000 will remain. However, I already plan to make some additional special payments here and there. So, not too much should remain. The agreed [ST] has even brought me a noticeable interest bonus. It is firmly agreed, but if the sale takes longer than expected, the timing could still be postponed as a gesture of goodwill.

Selling under time pressure is rather a bad idea, who knows how the market will be then. And [Kulanz] is only shown by a bank if it benefits from it...

Well, then there will just be a short-term bridge financing if necessary. But I do find a ten-year horizon for the sale somewhat risky. Who knows what the market situation will be like then. Abstract ideas without any knowledge: offer the current tenants a rent-to-own option? When exactly can you sell tax-free?