Fixed interest rate for the entire term or only 10 years?

Just a little tip. For example, calculate how high your "new" rate in option 1 would be if the interest rate rises to 2% but you don’t want to change the total term. (Otherwise, the term and thus also the total costs would change).

Here are many people who are extremely knowledgeable about this kind of thing. You don't have to spare them; you can calmly mention the complicated facts. Otherwise, it's hard to make any statement. The decision for a loan should be well considered, and above all, you need to understand it. If everything is so complicated that you cannot explain it, it is rather a sign to leave it. Have you ever had an [Annuitätendarlehen] offered for the full amount without a [Bausparvertrag] and such? I would also recommend you see a broker. You didn't write it, but to me it sounds like both options are offers from the house bank.

I basically understand what you mean. I can give it a try.

1. Offer VR-Bank
- KfW 0.85 10 years fixed interest 100,000€ 383.97€ repayment remaining debt 64,866.98€ costs 7,197.51€
- Annuity loan 0.85 10 years fixed interest 292€ repayment 150,000€ remaining debt 92,386.44€ costs 11,606.44€ special repayment 10,000€ one-time and for 10 years Baukindergeld 1,500€
- Repayment suspension loan 250,000€ 18 years 3 months until allocation 625€ 0.6% interest for 15 years and thereafter 2% until the end. From allocation we pay 1,163€. Duration 29.5 years, total costs 44,414.31€

Offer 2: Allianz
- Annuity loan 480,000€ 20 years fixed interest 1.35% 932€ repayment remaining debt 370,611.05€ costs 113,359€
- Building savings contract 370,000€ to be paid off after 20 years 672€ saving rate, 1.25% interest from allocation (eff. 1.85%) 1,750€ repayment 11 years 8 months total costs 20,372€

I hope this helps you further.

I cannot contribute anything regarding the conditions themselves due to a lack of knowledge. However, I can say something about the fixed interest term. Basically, it depends on your personal situation, your willingness to take risks, and your fundamental need for security.

Personally, I have an extremely secure job, am well privately insured in case of potential occupational disability, and have only financed 200k. Furthermore, I do not expect interest rates to rise to 3-4% again in the foreseeable future. The logical consequence for me was a repayment rate of 3% with a good interest rate from 2017 and a monthly payment comparable to the rent of a 4-room apartment. This allows us to continue living comfortably, and in a few years the cards will simply be reshuffled.

But if I were the sole earner, had tight calculations in a job that offers no salary jumps, with a high rate, then I would have chosen the longest possible fixed interest term. Simply to have no fear. This security is what the bank charges for.

So please assess your personal situation and decide for yourself.

What just came to my mind: do you want to buy or build a house? If building, how far along are you with the planning? If there is still a lot to clarify, I wouldn’t count firmly on [Blaukindergeld], it expires eventually.

What just came to my mind: do you want to buy or build a house? If building, how far along are you with the planning? If there is still a lot to clarify, I wouldn't count firmly on Baukindergeld; that expires at some point.

We are building and it starts in April 20. I have all the offers and all trades have been assigned. We will definitely get Baukindergeld.