Evaluation of LBS Home Savings Offer

Hello. I know building savings contracts are viewed critically, so I'd like to ask for an evaluation. Do you think there are better offers? The installment of 1450€ must not be higher, at least in the beginning, and the term should be a maximum of 33 years.

Key data: total costs 440,000€, equity 10,000€, loan requirement 430,000€. 100,000€ financed via KFW 153 Kfw 40+, 10 years fixed interest rate, 30 years term.

Remaining loan requirement is open. Available repayment installment is 1450€. The latest offer is as follows a building savings contract, all previous annuity loans had a higher installment. I won't mention the KFW loan separately, it is the same everywhere.

1) Interest-only loan
Loan amount 250,000€, nominal interest rate 1.8%, monthly interest 375€, fixed interest rate until the allocation maturity of the building savings contract (approx. 18 years)

2) Building savings loan, monthly savings rate 450€, after allocation maturity (approx. 18 years) repayment of the 1st loan, remaining loan amount 153,500€, nominal interest rate 1.9%, monthly installment 1000€, term 14 years 9 months.
Total term of the building savings loan approx. 32 years

3) Annuity loan
Loan amount 80,000€ nominal interest rate 2.08%, installment 239€, fixed interest rate 15 years, remaining debt after the fixed interest period 45,340€, calculated term 34 years

4) KFW loan, see above

Interest burden, assuming loans 3 and 4 remain the same after the fixed interest period, which is unlikely. But with these amounts we accept the interest rate risk, as most of it would be secured.

Interest burden for 1) 81,000€
Costs for 2) closing fee 2,500€
Annual fee 18€ * 18 years = 324€
Interest burden in the repayment phase 22,499.26€
Interest burden for 3) assuming constant interest after 15 years: 31,975.22€
Interest burden KFW loan assuming same interest rate: 9,250.87€

Total interest burden: 147,549.35€

Installment until allocation maturity: 1419.07€
Installment after allocation maturity: 1594€ (would be acceptable, 3000€ prepayment per year is planned, so probably 272€ would be eliminated from the annuity loan). Otherwise our salary will increase by about 80€ every 2 years, so after 15 years this should definitely work.

What do you generally think about this?

Thanks

Hello maduuto,

what do the individual costs look like and in which city/region (because of the selection of regional banks) is the purchase to be made?

Hello. The location is in the district of Rotenburg, Lower Saxony - Plot: €72,000 partially developed Kanalerschließungsbeitrag 3000 Notar estimated €2500 Grundbucheintrag 1800€ Grunderwerbsteuer 3600€ House costs 293,213 Baunebenkosten 63,887€ Equity capital €10,000

Even if this is not your question and you probably don't want to hear something like this (if you want, ignore my contribution) I allow myself to say your entire financing doesn't sound very healthy (at least based on the little information). With 440k, 10k equity is very little. Payment at the lowest limit and 30 years is also the maximum... and someone factoring in salary increases of 80€ suggests that you are on the edge with the payment. I hope my impression is wrong. My general opinion is, the tighter everything is planned, the more important a long fixed interest period is. Get offers with 30 years fixed interest and a building savings contract through the KfW residual debt. Your variant would give me a headache.

Hi. We are aware that it is "tight," but it is well calculated, and there would still be some buffer available. Together we earn €4600. 33 years is the maximum, then there would still be 2 years until retirement. With a 30-year fixed interest period, the rate was usually much higher. But we still have to wait with the financing, as the new development area is yet to be developed. Securing the residual debt is a good idea, thanks for the tip!

then just take your time to get advice from different banks and brokers. In our development area, the infrastructure work was delayed by 8 months! And don't forget that KFW now only offers 6 months of interest-free provision time. Provision interest is really expensive.