Financing proposal for 300,000 Euros - a first attempt

2013-02-11 19:12:54

Hello financial experts,

my wife and I have actually dared to request two financing proposals from a building society... just as a benchmark. Of course, this is absolutely the best on the market (according to the advisor). "It can’t get any better," etc. ...

However, since I have read several times that financing based on building savings contracts is not always optimal for the builders (commission still for the broker), here are the data with a request for active participation in the discussion:

1.

1.1 L-Bank Energy Building / interest rate 0.900 / payout 100.00 / repayment 3.020 / fixed interest rate 01.03.2023 / effective annual rate 0.90 / financing 50,000
1.2 L-Bank Living with Child / interest rate 2.550 / payout 100.00 / repayment 1.850 / fixed interest rate 01.03.2023 / effective annual rate 2.58 / financing 50,000
1.3 Interest rate security total term / interest rate 2.400 / payout 100.00 / repayment building savings contract / fixed interest rate until allocation / effective annual rate 2.48 / financing 100,000
1.4 Interest rate security total term / interest rate 2.400 / payout 100.00 / repayment building savings contract / fixed interest rate until allocation / effective annual rate 2.48 / financing 100,000

2.

2.1 Okay, I just realize that the second draft is the same as the first... so never mind.

Thanks in advance for your opinions!

Leon

2013-02-11 19:43:56

Hello financial experts,

my wife and I actually dared to request two financing proposals from a building society... just as a guideline. Of course, this is supposedly the absolute best on the market (according to the advisor). "It can’t get any better," etc. ...

But since I have read several times that financing based on building savings contracts is not always optimal for the builders (due to commission still for the broker), here are the details with a request for active participation in the discussion:

1.

1.1 L-Bank Energie Bauen/nominal interest 0.900/payout 100.00/repayment 3.020/interest rate lock 01.03.2023/effective annual interest 0.90/loan amount 50,0000
1.2 L-Bank Wohnen mit Kind/nominal interest 2.550/payout 100.00/repayment 1.850/interest rate lock 01.03.2023/effective annual interest 2.58/loan amount 50,0000
1.3 Interest rate security for entire term/nominal interest 2.400/payout 100.00/repayment building savings contract/interest lock until allocation/effective annual interest 2.48/loan amount 100,0000
1.4 Interest rate security for entire term/nominal interest 2.400/payout 100.00/repayment building savings contract/interest lock until allocation/effective annual interest 2.48/loan amount 100,0000

2.

2.1 Okay, I just realized that the second draft is the same as the first one... so consider it done.

Thank you in advance for your opinions!

Leon

Hello Leon, are you building with a granny flat? I think 1.1 is good that he included that—>> not everyone does that! 1.2 is debatable between 2.55% or 2.60 you should also be able to get a normal bank loan that allows special repayments—>> with "wohnen mit Kind" no special repayments are possible. 1.3 and 1.4 you would need more detailed data to be able to make a statement. Feel free to message me privately.

2013-02-11 21:07:56

Hey b0012sm,

we plan to run the 3 children's rooms, plus bathroom and room with pre-installation for a kitchenette as a granny flat. That would be basically 2 x 50,000 euros in terms of Kfw-55; 150,000 euros in terms of Z15 (formerly LAKRA) at L-Bank and then another 50,000 in an as yet unknown way.

I think the advisor meant well and pushed two 100,000-riester plans on me so that I can claim the subsidy for three children per year – I think that’s 1000 euros. That’s not a bad thing. Whether it ultimately pays off or whether I’m better off with Z15 and 2 x KFW 55, that’s the big question.

2013-02-12 10:45:46

Have you already looked at the funding requirements for the Z15? Do that on l-Bank.de and then reconsider it.

2013-02-12 11:03:39

Know the requirements (except for the second rank/have already clarified that via private message) and they are fine so far. Income limits, structural conditions, size of the children's rooms, maximum living area, etc. are being adhered to. The repayment would also be okay... the option for special repayment is eliminated, which doesn't exactly crown the whole thing. Nice and good to have great conditions, but if I end up with a balance of 80,000 and have to refinance it... yay... my banker is happy and buys himself a brand new set of 8 tires for his Porsche from the commission :cool:!

Similar topics
28.03.2011	Which financing model?	11
21.12.2011	Current experiences with interest rate conditions	15
14.05.2016	Allkauf house financing condition	50
28.06.2013	Construction financing / fixed nominal interest rate / commitment interest	15
25.07.2013	Financing option - Which one is better?	36
15.08.2013	Please evaluate the financing offer	12
18.04.2015	Is a building savings contract still worthwhile with the current interest rates?	10
27.06.2016	Building savings contract or annuity loan - final decision!	45
22.01.2017	Which financing option, TH or building savings contract?	23
18.01.2018	Annuity loan vs. home savings contract - comprehension questions	47
27.02.2018	Old home savings contract - what should you do with it?	31
28.05.2018	Annuity loan vs. building savings contract 300k loan	10
03.11.2022	Use special repayment or save to pay off a small loan?	14
21.11.2018	Financing with a building savings contract?	18
11.12.2020	Reorganization of finances after house construction, building savings contract, occupational pension scheme, Riester	15
06.07.2022	How secure is the collateralization of the remaining debt via a home savings contract?	17
15.12.2022	Follow-up Financing 2030 Prepare Now Building Savings Contract/Special Repayment/Fixed Deposit	64
08.06.2025	L-Bank Z-20 limited residential area with basement	39