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

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

Unfortunately, I have time at the earliest tonight to look at the conditions... I would be careful about being sure that you will get the Baukindergeld. You don't have that in your control. You can only apply for it once you have moved in, so in about a year. Until then, the fund could be empty or the broken GroKo might have led to it being discontinued, etc.... everything is possible.

Unfortunately, I won’t have time to look at the conditions before this evening... I would be cautious about being sure you will get the Baukindergeld. You don’t have that in your hands. You can only apply for it once you have moved in, so about a year from now. By then, the fund could be empty or the broken grand coalition could have led to it being discontinued, etc.... all possible.

There is no fund. You have to have your building application approved by December 31, 2020 at the latest, which we had already two months ago. I can only apply after moving in, that’s true. But I do not expect the government to discontinue it. However, we are not dependent on it, so that is another discussion. Thank you for the many messages, that makes me very happy.

There is no fund. You have to get the building application approved by December 31, 2020 at the latest, and that was already the case for us two months ago.

Phew, you’re losing a bit of the desire to help you. You seem very convinced of yourself, even though you apparently are not deeply involved in the matter. Simply put, a budget was allocated for the child benefit. I called that a fund. I would have to look up the exact amount again. Nearly €10 billion. If it’s gone, it would have to be decided anew... do you really believe that would happen again?

I don't want to talk this down. I also want to take the child benefit, but we are moving in already in January. There is a budget for that as for everything, and once it is used up, there would have to be a new decision. Unlikely. However, I don't know how far the budget goes. It was just meant as a note to keep in mind.

- Annuity loan €480,000 20 years fixed interest 1.35% €932 repayment remaining debt €370,611.05 costs €113,359

You pay €932 initial repayment per month, I interpret, and that over a period of 20 years? Even without compound interest effect, I come to €223,680 being repaid. How can the remaining debt then be only €110k less than the initial amount?

And in variant 1, the interest-only loan... €250k at 0.6%, I come to €125 per month... why are you paying €625 then? Is something already being saved there?

In general... interest-only periods, or saving in a building savings contract, initially cause "losses," because in case one you do not repay, in case two you save and practically get no interest. At the same time, you pay interest on the full loan amount. That is why such variants are always initially more expensive than a classic annuity loan, where repayment starts from the beginning. The "consideration" is the security. You know how it will continue after the end of the fixed interest period. It is your very own risk tolerance that decides whether this security is worth the extra cost to you.

Generally, why are such complicated constructions being offered to you? I would not get involved in that. Plain "normal" annuity loan, combined with KfW, possibly (two?) modules with different terms (10/20 years), plus a special repayment option – then you can make use of it if you can afford a higher rate later. That's it.

How far the budget will stretch, I do not know.

Currently, about one third has been used. Fund size just under €10 billion.