Evaluation of our financing offer

Do you already own a house? Free of encumbrances? And the 300,000 is for renovations? So renovations, refurbishment, are always evaluated differently by the bank. But if the existing property already has some value, and then the 300 TEUR are added, even if not everything increases in value, then it should also be possible to get a better rate...

Yes, we own the house and it is free of encumbrances. Estimated value of the property with house approx. 150,000 €

Alternatively, Debeka has now offered us the following:

100,000 € via KFW
10 years interest-only payment of 63 € / month
effective interest rate 0.80 %
10 years savings with building society savings contract at 361.00 € / month -> results in 41,600 € credit balance
after 10 years building society loan of 40,900 € (100,000 € - 41,600 € credit balance - 17,500 € repayment bonus)
approx. 9 years at 424 € / month until full repayment
effective interest rate 2.20 %

100,000 € annuity loan fixed for 25 years
319 € / month
1.46 % effective interest rate
2.37 % repayment

Since the first 100,000 € are paid off after 19 years, the rate for the second 100,000 € increases accordingly and the loan is repaid after 25 years.

According to their overview, a combined mixed interest rate of 1.13 % over the entire term; total costs (interest and fees) = approx. 35,000 €
I find the 1st option somewhat better, or am I overlooking something?

Hey,

I have received an update again due to slightly increased interest rates and the fact that we have increased the loan amount to 220,000 € . Maybe you could share your opinion on this with me.

1.
100,000 € via KfW
10 years interest-only payment of 63 € / month
effective interest rate 0.80 %
10 years savings with building society saver of 361.00 € / month -> results in 41,600 € balance
after 10 years building society loan of 40,900 € (100,000 € - 41,600 € balance - 17,500 € repayment subsidy)
approx. 9 years at 424 € / month until full repayment
effective interest rate 2.20 %

120,000 €
Debeka building society loan
almost 19 years saving at 270 € / month -> results in approx. 60,000 € balance
afterwards repayment of building society loan at 816 € / month; approx. 7 years long
effective interest rate until allocation 1.26 %
effective interest rate after allocation 1.73 %

2.
100,000 € via KfW
10 years interest-only payment of 63 € / month
effective interest rate 0.80 %
10 years savings with building society saver of 361.00 € / month -> results in 41,600 € balance
after 10 years building society loan of 40,900 € (100,000 € - 41,600 € balance - 17,500 € repayment subsidy)
approx. 9 years at 424 € / month until full repayment
effective interest rate 2.20 %

120,000 €
Debeka annuity loan
20 years fixed interest, effective interest rate 1.20 %, 2 % repayment
327 € / month
remaining debt after 20 years 58,000 €

But in step 1 there is missing a loan of 120000 euros for the time during which you are saving up your building society savings.

Yes, sorry. For the €120,000 you pay €122 / month until allocation after 19 years.