Financing existing property - Attention beginners ;-)

Hello dear forum,

I am overjoyed to have found this forum here. We (my wife and I, 29 and 31 years young) are about to purchase an existing property. It is a 15-year-old, well-maintained house. The building structure seems to be apparently fine, the basement is "odorless" and dry. The purchase price amounts to 265,000 EUR plus additional purchase costs. Our household net income currently amounts to 3,900 EUR/month, we currently spend about 800 EUR on fuel (2 cars), groceries, and hobbies. We currently have 80,000 EUR in equity but want to keep 20,000 in reserve for minor cosmetic work (wallpapering, painting, flooring, and a future used car purchase to replace our eldest). Our house bank (a VR-Bank) offered us the classic plan with building savers with the following key data:

Purchase price (including additional costs): 286,200 EUR
Equity: 60,200 EUR
Financing requirement: 226,000 EUR

The following modules cover the financing including interest rate lock:

Annuity: 146,000 EUR, fixed for 10 years, 2.69%, 2.81% repayment, 99,200 EUR residual debt after 10 years, ~670 EUR installment
Building savings contract of 99,000 EUR (redemption of the annuity): Savings phase: 10 years at 155 EUR/month plus an annual special payment of 2,500 EUR; repayment phase 600 EUR monthly, term ~9(?) years

2xTA loans: each 40,000 EUR, term 12.5 years, 2,xx%, 88 EUR monthly
2xRiester building savings contracts of 40,000 EUR each (redemption of TA loans): Savings phase: 12.5 years at 100 EUR/month each; repayment phase 200 EUR monthly, term 12.5 years

In the first 10 years, that would be a monthly rate of about 1,200 EUR/month, then after ~19 years about 1,020 EUR/month, and then only 400 EUR/month for the two Riester-BSVs.

What do you think about that? The house bank did not agree at all to an annuity with a long fixed interest rate. Tomorrow there is an appointment at the next bank scheduled. Do you have tips on what I should insist on?

Many thanks and best regards,
Thommy

Yes, the VR-Bank was also our first point of contact. At least for us, they had problems with higher lending values (over 60%/80%) and had to cobble together such constructs. We are out of that and knew it wouldn't work that way. Personally, 6 components for a financing would be way too much for me. Nobody can see through that anymore, and it is hardly comparable. But that's also what the bank wants. Building savings contracts are more worthwhile for long terms. However, you want to have paid off most of it after 20 years. Read the advantages and disadvantages of building savings combos and financing through Riester on the internet. We went to 2 brokers and had independent offers made. With that, we were by far better off.

Have you already informed yourself about Wohnriester?

Yes and no, I am aware of the existence of the fictional housing promotion account as well as the disadvantage of retrospective taxation upon retirement, but I really can't put a precise figure on it in hard euros. Tax advantages and the annual subsidy definitely sound tempting, but whether it pays off, I really don't know... Are there any good contact points with condensed information?

Although I have to say that we are not dependent on the Riester-BVS, as we unfortunately only took it out a month ago. Cancellation is probably still possible with only a small loss...

I think the offer is good if you can live with the [Riestergeschichte]

I wrote down the details in my post this afternoon from memory, so I wanted to quickly provide a few small corrections:

Additionally regarding the TA loans: These have a nominal interest rate of 2.6%, effective 2.68%, the Riester BVS only run for 10.5 years in the loan phase and have a nominal interest rate of 2.5% or 2.77% effective.

Just as information: The total costs for the financing (including all closing fees and excluding Riester subsidies) would amount to around 74,600 EUR.