Financing comparison - should one avoid a building savings financing?

Hello,

I have often read here that a building savings loan is not recommended. We have been offered a building savings contract and classic annuity loans. To compare them, I have created the following overview. Have I forgotten to consider anything in the comparison? For the KfW loan, a fixed interest rate of 7% was used, and for the other loans, 5%.

Thank you for your help

Nancy

You can also overanalyze it to death.

Moreover, it would certainly make sense to list the loan amounts and the installments of the components, as well as the conditions of the [Bausparers]. Otherwise, who else is supposed to check if you have forgotten something.
In addition, you should explain why you calculate with 7% in 10 years and then 5% afterwards. I could somewhat understand it the other way around, even though the calculation is completely unrealistic because you completely ignore the accompanying inflation.
My tip: Take a look at diagrams with historical inflation rates and construction interest rates.

I find it very interesting calculated.

My tip: Take a look at charts with historical inflation rates and construction interest rates.

10 years ago, interest rates were around 5%, how they will develop is of course questionable.

Inflation is around 0-2%: if the annual wage increase corresponds to this, it should not be relevant in the consideration.

The loan amount is of course the same for all offers, so can it be left out in the comparison? For the building society savings contract, I have listed the interest burden including the interest of the advance loan, the fees, the tax deduction, the credit interest, and the interest of the loan phase. The 7% and 5% rates were not determined by me but are taken from the respective offers.

if the annual salary increase corresponds to this, it should not be relevant in the consideration.

Yes, because you have a fixed expense in the form of the loan installment. If interest rates rise to 7%, inflation will also rise to 4-5%. The interest rate increase and the associated inflation do not happen exactly in 10 years, but continuously. If salaries develop in the next 10 years in line with inflation, then there is room for special repayments on the loan installment equal to the inflation rate. Even if the special repayment is not used, the value of money today is no longer comparable with a rising loan installment in 10 years.

Incidentally, one should consider what will happen to public debt in Europe if interest rates of 7% prevail.