Financing options for optimal support?

  • Erstellt am 2019-07-25 23:05:45

Reinheitsgebo

2019-07-25 23:05:45
  • #1
I consulted a bank regarding construction financing and they came up with the following structure:

1) KFW loan which is redeemed after 10 years (maximum fixed interest rate period). The remaining debt is transferred into a
2) annuity loan with a 15-year fixed interest rate period (the bank does not offer more), which still runs alongside it
3) In the meantime, a home savings contract with Riester subsidy is paid into; this then redeems the annuity loan by the end of the fixed interest rate period. The remaining debt is transferred to the home loan contract.

The background is that, according to the bank salesperson, this way you maximize the state subsidies including child bonuses and also secure a fixed interest rate there until the end of the term. Even with the costs of the home savings contract, you would still be in the positive. I could possibly also take some lead time there, but so far this is not yet factored into the offer.

What do you think of such a construct, apart from the fact that the bank gets triple commissions?
 

HilfeHilfe

2019-07-26 05:49:57
  • #2
The upfront fee is €40, probably just a drop in the ocean. Have the Riester disadvantages with deferred taxation and what happens in case of sale, etc. been explained? The thing with KfW is nonsense! The remaining debt will be extended at the then applicable conditions! The sum will probably be so low that you won't get a construction loan. Otherwise, see an intermediary and offer a classic bullet loan and enter both variants in Excel. I can't imagine that the offered arrangement is attractive. Especially since the building society contract and Riester also have high costs.
 

Tassimat

2019-07-26 09:04:46
  • #3
How do you mean the transfer of the KfW remaining debt into an annuity loan?


Normally the same way, with the then prevailing interest rates, not the current ones and certainly not with the KfW interest rates.


Your commission idea is nonsense.

Whether your construct is worthwhile depends on the specific numbers. Have you been to several banks and/or brokers?
 

Reinheitsgebo

2019-07-26 12:25:48
  • #4


I was told that after the 10-year fixed interest period expires, the remaining sum at the KfW is immediately redeemed and the bank loan is increased by the corresponding amount.
 

HilfeHilfe

2019-07-26 12:37:36
  • #5
Wrong advice or you misunderstood it.
 

Tassimat

2019-07-26 12:45:11
  • #6
Are you sure? I am hearing something like this for the first time. Get it in writing!
 

Similar topics
12.08.2013Financing through building savings? I don't see the catch.35
01.04.2016Construction financing | Is the procedure good? Your opinion and tips160
28.11.2015Building savings contract with advance loan versus annuity loan13
17.12.2015Kfw funding 2016 - How to set up construction financing?10
17.02.2016Loan with annuity loan and 2 linked building savings contracts47
10.05.2016KfW funding for two-family house26
29.05.2016Conditions for Riester home savings contract - What interest rate?16
10.12.2017Second residential unit in the house due to KfW funding 15313
18.01.2018Annuity loan vs. home savings contract - comprehension questions47
28.05.2018Annuity loan vs. building savings contract 300k loan10
02.07.2020Annuity loan or interest-only loan in connection with a home savings contract14
28.08.2020Home financing with interest loan and Riester or without Riester95
24.09.2020Financing of 400k with 60-120k equity capital through a combination of BANK/KfW/savings contract22
18.11.2021KfW funding for KfW 40 Plus houses from now and from 01.07.202157
21.03.2021Land registry later than planned - save KfW funding18
08.05.2021New building with granny flat - general contractor restricts rental and KfW funding51
31.08.2021Kfw 40 Plus funding - Ban on feed-in tariff?21
25.08.2021Financing new single-family home construction - full repayment, building savings contract, or annuity loan?13
06.07.2022How secure is the collateralization of the remaining debt via a home savings contract?17
06.03.2023Is a building savings contract with a high outstanding debt sensible as partial security?17

Oben