Financing with a building savings plan or a classic loan?

Hello!

I have been following along for a while and appreciate the lively exchange on all topics. I am facing my financing decision and would like to include the experiences and opinions of the forum. Essentially, I have two options at the moment.

Initial situation: Single-family house; 2 adults, 1 child.
The income situation is sound and manageable. However, the rates described below should not be exceeded at the moment.
Required capital through financing: 280,000 €

1st option: "classic" loan + KFW 124

Loan: 230,000 EUR
- Interest rate: 1.45 % p.a. nominal
- monthly installment (interest and repayment): 790.00 EUR
- special repayment option 5 % p.a.
- remaining debt after 15 years: 128,082.32 EUR
- interest rate risk after 15 years, total term 30 years

- monthly burden year 1-15: 790.00 EUR

plus 50,000 EUR loan KfW 124 - fixed interest for 10 years, term 25 years

- current interest rate: 0.85 % p.a. nominal
- monthly installment (interest and repayment): 191.98 EUR from year 2
- remaining debt after 10 years: 32,434.05 EUR
- interest rate risk after 10 years

Total monthly rate save for 10 years = 981.98 €

2nd option: Loan with Bauspar contract and KfW 124

Bullet loan: 230,000 EUR for 15 years
- Interest rate: 1.45 % p.a. nominal
- monthly interest payment: 278.00 EUR (no repayment!)
- remaining debt after 15 years: 230,000.00 EUR will be repaid by the Bauspar savings and loan
- no interest rate risk after 15 years

Bauspar contract:
- monthly savings rate Bauspar contract (from year 2 to year 15): 561.00 EUR
- Bauspar sum minus fees at allocation: approx. 92,000 EUR
- guaranteed interest rate of the Bauspar loan from year 16: 2.35 % p.a. – fixed for the remaining term of approx. 15 years
- monthly annuity of the Bauspar loan: 920.00 EUR until the end of the term
- special repayments for the benefit of the Bauspar loan are possible at any time

- monthly burden year 1-15: 839.00 EUR
- monthly burden from year 16: 920.00 EUR

plus 50,000 EUR loan KfW 124 - fixed interest for 10 years, term 25 years
- current interest rate: 0.85 % p.a. nominal
- monthly installment (interest and repayment): 191.98 EUR from year 2
- remaining debt after 10 years: 32,434.05 EUR
- interest rate risk after 10 years

Total monthly rate save for 10 years = 1,030.98 €
From year 16 save 920.00 EUR plus KfW rate


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In the meantime, the KfW interest rate has probably also dropped to 0.75 %...

I am torn. On the one hand, I am attracted by the greatest possible planning security of the combination with the Bauspar contract for the larger part of the loan.
But I also see that when the KfW fixed interest period is over and I have the Bauspar loan, I will probably have to handle a rate of about 1,200 EUR (no matter how the KfW interest develops). And I have great respect for the fact that after 15 years I still have not repaid anything on the original loan. Plus: The fees of about 2,300 EUR for the Bauspar contract really hurt.

As a precaution in case of emergency, we also have insurance solutions in mind. Among other things, a life insurance is offered, the sum insured of which decreases linearly during the financing period (basically to purely secure the remaining debt). That seems to me only sensible with the first option without Bauspar, because the remaining debt also decreases continuously here.

Security costs, I am aware of that. But I do not really find the Bauspar option very secure – and it is expensive... Or am I overlooking something in my considerations?

I find the repayment a bit low. Have you ever inquired about an annuity loan with a 20-year fixed interest period? You would also have significantly more security. I don’t find the interest rate that great either. I just signed for 20 years at 1.04%. Were you only at the house bank? In that case, I would definitely also go to a broker.

I find the repayment rate a bit low. Have you ever inquired about an annuity loan with a 20-year fixed interest period? You would also have significantly more security. I don't find the interest rate that great either. I just signed for 20 years at 1.04%. Were you only at the house bank? In that case, I would definitely also go to a broker.

A monthly payment of 1,000 - 1,100 EUR is what we would consider "healthy" in our household. We don’t want to exceed that for at least the next 10 years. The term should also be such that we are noticeably finished before retirement, so about 30 years total would be ideal. That limits the scope for negotiating interest rate lock periods toward 20 years.

It is indeed the house bank. I have another appointment in one to two weeks at another bank. We recently had unpleasant experiences with a broker. He quoted us an interest rate of 1.67% for the same fixed interest period on the main loan plus KfW.

Is it actually to be expected that brokers are cheaper? Considering the commission claims of brokers, which would also have to be factored in...

Is it really to be assumed that intermediaries are cheaper? With regard to commission claims of the intermediaries, which would also have to be factored in...

Yes, inquire and compare! It doesn't cost anything either.

What interest do you get on your [Bausparer]? Check whether you don't simply want to keep it and make the loan and more returns than you pay in interest for another loan.

What interest do you get on your building savings contract? Check if you don’t just want to keep it and make the loan and more return than you pay in interest for another loan.

The building savings interest rate here is fixed at 0.05%. I don’t see much return in continuing to save. For me, it only makes sense if I use it to secure the loan interest rate of 2.35% starting from year 16.