Financing with grace period loans + building savings contract

Caution, these are simplistic calculations!

You cannot compare the interest rate of an annuity loan directly with that of a TA loan.
In an annuity loan, the interest burden decreases over the repayment period, whereas with the TA it remains constant at a high level.

The interest rate of the building society savings contract is the nominal interest rate during the repayment phase. The savings phase and fees are not taken into account. The effective interest rate is likely to be above 2.5% for the building society saver.

It is best to compare the costs over 30 years and not the interest rates if you want to draw a comparison between different financing forms.

It is already clear that additional costs arise and that you have to pay for interest rate security, I had already written that.
For that, the initial interest rate is also at 1.8, and the building society contract also yields 0.1%.

Maybe someone wants to calculate that concretely and compare it to a fully amortizing annuity.

Only the statement by I do not understand.
After a good 31 years, the OP is debt-free without interest rate risk!

Well, you tie up capital and save for a future bet. In the hope that income will increase when the [Bausparvertrag] comes into effect. And honestly, paying for 31 years in a low-interest phase? Foolish

It is already clear that additional costs will arise and that the interest rate security must be paid, as I had written.
For this, the initial interest rate is also 1.8 and the home savings contract also yields 0.1%.

For this, the TA loan costs a whopping €90,000 in interest in the first 15 years without repaying a single euro.
Plus closing fees (1% or €3,510?), account management fees.

30-year fixed interest at 90% loan-to-value currently at HVB at 2.05% nominal.

Only the statement by I do not understand.
After just over 31 years, the OP is debt-free without interest rate risk!

The big untruth in this thread. Unfortunately, the OP probably believes it too.

He saves €590 monthly, after 15 years that's €106,200 without interest on the balance (I’ll leave the peanuts aside, that’s not even €1,000).
Capital requirement from the home savings contract €244,800. Divided by 15 years = €16,320 necessary repayments per year, or €1,360 monthly. WITHOUT (!) interest.
But he writes about €1,200 monthly burden from year 15 ... something is wrong there.

Definitely not debt-free.
On the contrary, this is likely to be tens of thousands of euros more expensive than an annuity loan.

It must be clear that at the current interest rate level (see above), capital requirement of €351,000 and €1,100 monthly burden, a full repayment over 30 years is not possible. It would be about 38.5 years at a constant interest rate.
By the way, this corresponds to an initial repayment of 1.71%, which is actually too low. It should be €1,200 per month (2.05%). The term would then be about 34 years at a constant interest rate.

To put it bluntly: The advisor probably only sets up this construct because the customer actually wants to finance beyond his means. Payment too low, desire for security too high. Ergo horrendous financing costs.

He saves €590 monthly, after 15 years that is €106,200 without interest on the credit balance (I'll leave out the peanuts, that's not even €1000). Capital requirement from the building savings contract €244,800. Divided by 15 years = €16,320 necessary repayment per year, or €1360 monthly. WITHOUT(!) interest. But he writes about a €1200 monthly burden from year 15 ... something is not right.

Thanks for the calculation, I have now recalculated it myself. The numbers from the OP were simply wrong. I had assumed that the 31 years were calculated correctly. And with 31 years, €1200 annuity and €351,000 that corresponds to an interest of 1.65%. Yes, if I had spent more time on it from the beginning, I would have noticed that something could not be right there.

, either you have to increase the rate or term, or reduce the loan. Where did you get the 31 years from? Probably because the building savings contract must be repaid after 16 years? But that corresponds to a rate of almost €1500 and not €1200.

And overall, the offer does not sound as attractive now as I initially wrote (based on your data).

Correct, as said, is always a naive calculation and a bet on the future like in 15 years everyone will have 3000 net more per month

Correct, as said, it is always a simplistic calculation and a bet on the future like everyone having 3000 net more per month in 15 years

Basically, I wouldn’t demonize it either! You just have to calculate it carefully. And here the OP or the advisor simply miscalculated and I continued with his numbers. That is a mistake!

The option to save 40% and then have 1.25% sounds more interesting. That would be 788 saved + 529 interest = 1317, if you then continue to pay down with that, after 15 years you’re done in under 30 years. That corresponds here to a comparison interest rate for an annuity loan of about 2%, depending on how exactly you calculate account management, closing fees, credit interest, etc.

30 years fixed interest rate at 90% loan-to-value and 2% is not fundamentally a bad offer.

The other option with >2.5%, on the other hand, is.