Financing offer: TA loan with building savings contract

That's correct, but I wanted a rate of just under 2000. So: of course, if I repay more, the remaining debt decreases, but we wanted this exact rate.

It's a bit too comprehensive insurance for me. Or are more children planned, and will something change with the household income? What is the market value of your properties? And how much equity is going into the project overall? With a little more annually (2000€ - 2100€) and some special repayments, the whole thing should be finished in 20, maximum 25 years.

Otherwise, this is all historically cheap money; if you definitely want 1900€ over 33 years, you have to take this route. It will work out either way.

Have you also looked at regular full amortization loans (fixed payment, fixed term, usually no special repayments)? At least as an alternative to the [Bauspar] approaches, you should also calculate that.

Thank you very much. I will take a closer look at it with the consultant tomorrow. And yes. I am the control freak full coverage type. I understand that it basically costs money. I was just fundamentally uncertain. By the way, in my opinion, another advantage is that you can sell a property at any time and put the proceeds into the [Bausparvertrag] without a prepayment penalty. That was also important to me. That way, I can sell within the next ten years if I want to.

I would pay off as much as possible for now, as long as I can. That way, the total amount goes down initially. If it gets tight at some point, you can change the repayment rate. At ING, you can change the repayment rate twice for free (I did that too, but increased it, and it annoys me that I didn't start higher right away). Regards, Olli

If I understand the contract correctly, then I can make a 5% special repayment annually. I prefer that over an extremely high rate. It keeps you flexible (and seriously: how many can actually repay these 5%, realistically it's probably more like 1 to 2 percent).