Financing plan - sounds almost too good for us

Hello dear forum,

since we have already received very competent answers here, we would like to hear your opinion on our new financing proposal.
This sounds almost too good to be true for us. Therefore, we would like to know if you suspect any potential pitfalls.

Key data:

House construction costs (all incl.) 250,000 Euro
Equity capital: 50,000 Euro
Financing requirement 200,000 Euro

Financing proposal ([Bausparfinanzierung]):
The whole thing is in financing modules. That means the [Bausparkasse] offers us a financing amount of 100,000 Euro per person with the following plan. This means that all values simply have to be multiplied by 2.

Per person and 100,000 Euro:

- Loan of 100,000 Euro at 2.3% effective over 13 years. Only the interest is paid and no repayment. (191 Euro monthly)

- Meanwhile, the [Bausparer] is being saved, which repays the loan after 13 years. (260 Euro monthly)

- Annually, an additional 1000 Euro is deposited per person into a separate account (this results from an annual premium payment)

- After 13 years, the loan is repaid by the [Bausparvertrag]. This includes a saved sum of approx. 45,000 Euro (including 5 special payments of 1000 Euro each)

- additionally, on the date when the [Bausparvertrag] repays the loan, the annually saved 1000 Euro per person (13,000 Euro) special repayment is applied

- the remaining 42,000 Euro are then paid off at 3.1% effective over about 7 years (450 Euro monthly)

- during the repayment phase of the [Bausparvertrag], an additional 1000 Euro per person is annually repaid as special repayment

According to this calculation, we would be completely finished after about 20 years with 900 Euro monthly and 2000 Euro yearly.

What do you say to this financing option?

Best regards,
Micha

Have you already offset any fees there? I have no idea about building savings contracts, but from other capital investments, I know that taxes have to be paid on capital gains. I also keep hearing about the allocation maturity, not in a positive sense. Likewise, you have 1000 euros per person per year. Consistently maintaining that for 20 years is already quite a challenge. You get 200,000 euros with an annuity loan with a 20-year term at almost the same price with a good interest rate. I personally prefer something like that. It leaves no room for capital speculation.

The building savings contract costs 1 percent of the building savings amount upon conclusion. Annuity loans which are tied for 20 years are either not available at all here (Sachsen) or only under utopian conditions. We attach great importance to having a direct contact person at the respective bank on site.

What is utopian about it? 3%, 4%, 5%? How do you come up with 13 years? And why per person? It all sounds so much like "out of the blue."

Still forgot. As I said, I don't know much about building savings contracts. If I’m not mistaken, the contract yields an 11% gain. After deducting the fees, it’s not quite that much anymore. But that still sounds suspiciously high. Especially compared to the current interest rate for deposits. I suspect there are still some costs hidden somewhere. Nobody gives away money for free, especially not a bank.

Hello, I’m not a financial genius either, let alone with the building savings thing, I can only compare roughly. Then there is also a great online loan calculator, which I probably shouldn’t link here. If I take today’s loan interest rates, for example from an online provider for 20 years at 3.08%, then it’s almost the same as your offer, even about ±35 € more per month with 2000 special repayment (for 200,000 over 20 years, equity 50,000).

But you could also use KFW 153 (or not?). Then the interest rate would be a bit lower, since it’s a mixed rate with 1,x% for KFW for 50,000 €. But whether that brings much, or since you also write that you need a personal contact... then the possible difference shouldn’t matter to you, and you can count yourself lucky :D Congratulations!