Financing with a building savings contract?

At the age of 65, a life insurance policy of approximately €70,000 will be paid out, which is intended to cover the "rest" of the financing.

This is actually a no-go: a house should be paid off by retirement. That does not mean that you shouldn’t use part of your retirement provision for this.

Equity capital, approx. €20,000

Monthly income of €6,000 net

I hope you will live more sparingly from now on, with that income and your age there should be (significantly) more in the bank.

City villa with 152m², LWW, ventilation system, a bit of special equipment: €232,600

That is tight, currently €2,000/m² is calculated. = €304,000

Eff. annual interest rate: 3.14%

A good interest rate for you would be around 2.6%

income and equity capital way too low

€6,000 net is definitely not too low!

By the way, everyone who eagerly adds their two cents about the costs usually built cheaper themselves. This has been proven here again and again :p

Feel free to listen to people like milo3 who say: €2,000/m² is way too exaggerated. I, on the other hand, would rather have €40k left at the end than have to refinance €40k. Best regards

The income is definitely not too low. As I already wrote, our starting position is worse (only about 10% equity, not all of which we wanted to contribute, and less income, also relative to the amount to be borrowed) and our interest rates on all parts of the financing are below 2%. Therefore, I remain of the opinion that a better financing option will be found.

What do you all have against the interest? The OP surely has his reason why it’s 20k. Suggestions like you can sell your caravan are complete nonsense... relatively speaking, the interest rates here are “high”, but what does the OP have in five years with enough equity? If he’s lucky, the same interest rate because rates have risen, and beyond that, the construction costs have remained the same. Did you all sell your belongings for your new build for a ridiculous 0.1% less interest??? By the way, all those who eagerly add their two cents about costs usually built cheaper themselves. This has been proven here time and again :p

Sorry, but that is mostly nonsense. I asked if selling the caravan was considered. That should be legitimate. If the OP can sell a caravan for a lot of money NOW, then he has more money NOW and not in 5 years. And we’re not talking about a 0.1% interest improvement either, at least 0.5% is possible. With the savings over many years, he can easily afford 2 caravans or a motorhome ;-)

The concept includes the following plan, which I would like you to evaluate:

First of all, it is incredibly difficult to assess the financial statement. It is not clearly visible how much equity is actually being used, how high the credited "muscle mortgage" is, what and how much is being done with the incidental purchase costs for the land, and where costs that are not considered in the actual financing (at least regarding the loan-to-value ratio) are. In other words, you actually do not know what the basis is, and thus the loan-to-value ratio.

And this is important to assess in order to see whether the financing you wrote down is expensive/okay at all, or if you are lucky. In the area of 95% and higher loan-to-value ratios, the spreads are extremely high, the number of banks participating is significantly lower, etc.

Let’s come to financing. So, you could already write down how high the remaining debt after the fixed interest period is. In addition, you have not indicated the rate for your building savings contract/TA construct during the loan phase.

We think the offer is quite good, but the remaining debt compared to a "regular" full loan after the fixed interest period is still quite high.

Did you get one offered? And what is a full loan after the fixed interest period?

Do early repayments on the building savings contract or in the annuity loan make more sense...?

For the first 17 years with your building savings contract/TA, there is no repayment, but you only save in the building savings contract. In other words, early repayments on the annuity loan have more impact on costs.

Is early repayment possible/agreed?

Early repayments considered: €2400 per year, for 10 years (child benefit)

Do you mean now additional savings payments in the building savings contract?

I would also look for another financing option. Have you already been to an independent broker?

The question about the net income without [PKV] is not unimportant. I would also find it a bit unpleasant to plan for a salary increase with another child – possibly one salary might first decrease due to part-time work? [PKV] could probably be removed though.

When the children move out or are no longer considered in the salary, which is not unlikely for a plan extending to retirement ;-) one should also take this change into account.

In the end, you have to be able to live with your installment; no one can make that decision for you – but you shouldn’t be too optimistic in your calculations if you are not risk-tolerant or wouldn’t mind having to sell the house again.

By the way, what happens if the life insurance is worth nothing in 30 years?