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?
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?