Evaluation of financing offers for our house construction

Hello everyone,

we are now entering the final phase and we have received a few financing proposals. Due to the conditions, some providers are excluded and I still have to update the offer from the local Sparkasse, so it is excluded here.
Our maximum monthly rate is 1400 euros, which leads to these options:

1) Ing-Diba
Fixed interest rate period: 15 years
Nominal interest rate 1.9%
Repayment 1.5%
Outstanding principal at the end of fixed interest period: 210,000 euros
Rate including KfW standard: 1025 euros

BHW building society saver
Rate savings phase 337.55
Balance after 15 years 58,000 euros
Contract fee: 2150 euros
Saving period 14 years 9 months
Loan amount 157,000
Nominal interest rate 2.35%
Effective interest rate 2.56%
Term until full repayment 11 years 8 months
Rate 1290 euros
Any special repayment per year

So first 15 years 1362.55 euros per month, then 1290 for about 12 years.
But: No guaranteed allocation!

2) Ing-Diba
Fixed interest rate period: 15 years
Nominal interest rate 1.9%
Repayment 2.75%
Outstanding principal at the end of fixed interest period: 150,000 euros
Rate including KfW standard: 1325 euros

Risk after 15 years manageable for us, only from a nominal interest rate over 7% it becomes serious.

3) DKB
Fixed interest rate period: 20 years
Nominal interest rate 2.36%
Repayment 2.5%
Outstanding principal at the end of fixed interest period: 105,000 euros
Rate including KfW standard: 1378 euros

So I read it as the DKB offer being less attractive than both Ing-Diba offers.
Option 1 has an uncertainty factor that I currently cannot really assess. What happens if the building society saver is not allocated? How expensive is bridge financing? The total term of under 27 years would be extremely attractive.
Option 2 offers a significantly lower outstanding principal and up to a nominal interest rate of about 3.5% in 15 years this would probably be the better choice.
Option 3 has a lower outstanding principal, but to fully repay in 7 years, the interest conditions in 20 years have to be really good.

Maximum term is 30 years, anything less is, of course, better.

How do you evaluate these options?

None of the offers is "better" or "worse," as you cannot compare apples and oranges, except regarding personal preference. The financing offers involve quite different terms and instruments.

It is all a matter of one's own risk preference and the expected interest rate development.

Personally, since I do not like constructions with [Bausparvertrag] and consider the added value of a 5-year longer fixed interest period with a surcharge to be low, I would go with the Ing-Diba offer.

I would personally take the first offer. But that depends on my need for security when it comes to interest rates. Why shouldn't the [Bausparer] be allocated?

So the first 15 years 1362.55 euros per month, after that 1290 for about 12 years

The 1290 is then without KfW, correct? Or already with KfW?

The 1290 are then without KfW, correct? Or already with KfW?

You’re right, thanks for the hint. It is without KfW follow-up financing.

That means 1290+x. Probably 200-max. 300 euros. That makes the whole thing a bit more difficult again, and option 2 would be preferable.

Why shouldn't the building savings contract be allocated?

There are no building savings contracts with fixed dates, that contradicts the system.
That means if building savings contracts are linked with annuity loans, then only at the joint conclusion and with the guarantee that the annuity loan continues with the same conditions until the building savings contract can be allocated. Otherwise, there is a risk of potentially expensive interim financing.

lastdrop is right that these are apples and oranges.
One also reads a preference for 2 from the OP, as the risk is manageable. I would additionally look for a 20-year option, which is cheaper than 3) DKB, there might still be something possible.

ING has recently adjusted the conditions, they have dropped a bit again and the special promotions (interest discounts) are currently not bad either. Maybe have the conditions updated again before signing.