Financing options for optimal support?

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?

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.

How do you mean the transfer of the KfW remaining debt into an annuity loan?

The remaining debt is extended under the then applicable conditions!

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

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

Your commission idea is nonsense.

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

How do you mean by the transfer of the KfW residual debt into an annuity loan?

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.

It was explained to me that after the 10-year fixed interest period expires, the remaining amount with the KfW is immediately redeemed and the bank loan increases by the corresponding amount.

Wrong advice or you misunderstood it.

It was explained to me that after the expiry of the 10-year fixed interest period, the remaining sum with the KfW is immediately redeemed and the bank loan is increased by the corresponding amount.

Are you sure? I am hearing something like this for the first time. Get it in writing!