Financing and interest rate fixation when buying a house - remaining debts

Hello dear forum.
I registered here because – who would have thought – I want to buy a house.
We roughly calculated the financing with the advisor.
I now want to ask you for advice regarding the financing because the bank advisor included Riester-Wohnen and did not tell us about the pitfalls.

So, the following:
- Family, 2 minor children
- Price: €129,000 + €13,000 for commission, land registry entry, property tax, notary.
- Renovation costs = €50,000.
Loan amount: €190,000, equity €20,000.
Net income, both = €3,100/month + €368 child benefits.

Financing proposal from the advisor:

€190,000 total costs - €20,000 equity = €170,000 loan amount.

Breakdown:

1:
Riester-Wohnen = €70,000
13 years at 2.75% = €335
13 years at 2.97% = €424
= 26 years with fixed interest.
-- That we are tied to the property here, must pay taxes on the amount when we retire, etc., etc., was not told to us!

2:
€50,000 loan from the bank, interest fixed for 15 years at 3.3% =
€220 for 15 years.
Then €30,000 remaining debt.
If we pay €290, the remaining debt after 15 years is still €14,000.

3:
€70,000 via L-Bank, living with child
10 years fixed interest at 3.1% = €190 (I don’t remember exactly)
After 10 years remaining debt = €36,000.

To secure the remaining debt here, €98 is paid into a building savings contract.
After 10 years, this is available with €12,000 allocation, which can reduce the €36,000 to €24,000.
On the €24,000, there is then a loan from the building savings contract at 2.95%, with which the remaining debt is paid off.

I wanted the highest possible security regarding the interest rates.
The residual risk in his opinion is the €30,000 respectively €14,000 after 15 years from 2.

What do you think of this financing?
Are there any additional closing fees?

Is this sensible, or should I rather do everything directly at the bank at 3.3%?

Of course, I will inform myself at other banks or ask a buddy who works there and grants loans.

But your opinion is also important to me.

Thanks and best regards

1) Riester is not for me. You already mention the reasons yourself. In general, I like to keep financing as simple as possible. Riester makes it complicated.

3) Also more complicated than necessary. Building savings contracts pay good commissions, so they are gladly sold. It only pays off if you win the interest rate gamble – probably not nowadays. How do you come up with 36,000 EUR residual debt? With 190€ over ten years, you have only repaid about 1,000€.

Since you just mentioned the interest rate risk, I can recommend trying to secure the longest possible fixed interest period. I am glad about the 30 years. In 10 years, I won’t face a high interest rate that I possibly cannot afford anymore.

Hello Meecrob, thank you very much for your reply.

I have completely abandoned this financing in the meantime and am quite angry at the advisor.

I have also thoroughly informed myself about Riester again and after a very long conversation with a friend who is a bank employee, many things have become clear to me.

Where on earth do you get a 30-year fixed interest rate?
My buddy says that a maximum of 15 years is possible, no bank does 20 years!
Which reputable bank offers a fixed interest rate for 30 years?

Well, we have secured a large part of our financing through a building savings contract. I guess no one can say today who will win the interest rate poker in 10 years.

For us, for example, the preparation time is included. That’s already 80 € that our boss pays for the house. Regarding the interest:

For the first 10 years, we effectively have a loan at 3.06. As a repayment substitute, the building savings contract is behind it. After 10 years, it goes into allocation, repays the loan 100%. The building savings contract is effectively at 2.9%. So we have a fixed interest rate for 20 years and an average interest rate of just under 3%. It was, together with [KfW], currently the cheapest option for us.

I have sent you a PM regarding the fixed interest period.

You have relatively little equity. In addition to the purchase price, the bank therefore has to finance 43,000 EUR. This is called full financing and is usually penalized with high interest rates. I am therefore a bit surprised by your low interest rates. However, I do not know the current level.
Such financing is tricky. If the house is sold out of necessity, you still have debts that are not covered by anything. You then have to pay these off in addition to the rent.
The interest and grants for Riester and building savings plans are also missing in the calculation.
Full financing is certainly done with very high income, but I consider it negligent in your situation.

I would also like to take the PM with the bank with a 30-year fixed interest rate