Fuchs WohnbauRente or Normal Loan

Hello,

we want to buy a house and have the following financing offers:

1)
Sparkasse; €165,000; nominal interest rate 3.85; effective interest rate 3.919; 15 years fixed interest period; 1% repayment; installment €667

KFW; €50,000; nominal interest rate 2.55; effective interest rate 2.58; 10 years fixed interest period; 1.85% repayment; installment €183.18

No calculation of the effective interest rate for all loans.

2)
MVB; €79,000; nominal interest rate 3.09; effective interest rate 3.13; 10 years fixed interest period; 4% repayment

R+V FixDarlehen 25; €86,000; nominal interest rate 3.64; effective interest rate 3.70; 25 years fixed interest period; 1% repayment

KfW; €50,000; nominal interest rate 2.8; effective interest rate 2.84; fixed interest period 10 years; 1.763% repayment

Effective interest rate of all loans 4%
Total of all payments €355,048

3)
MVB; €79,000; nominal interest rate 3.09; effective 3.13; fixed interest period 10 years; 4% repayment

Fuchs WohnbauRente; €136,000; nominal interest rate 2.4; effective interest rate 2.48; fixed interest period 25 years;

Effective interest rate of all loans 3.2%
Total of all payments €271,717

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Isn't the loan via Riester the best? Even if you add the tax on the housing promotion accounts (Accounts: €136,625 - 30% deduction (with immediate taxation) = €95,637 x 30% tax = €28,691) only €300,408 comes out.

We are grateful for any help and tips.
Thank you in advance.

I personally think nothing of Riester, I do not want to pay anything back in retirement. Where did you get the offer from [Sparkasse]? I got an interest rate below 3.5% from an independent financing advisor for a higher amount and 20 years fixed interest period, lender also [Sparkasse].

Regards

Sascha

1.
Just roughly estimated, the 1st and 2nd offers should differ by about €100 in the monthly rate. So they are not comparable. The 3rd offer does not specify any repayment at all.

2.
In the 2nd and 3rd offers, the effective interest rates of the individual loans are all lower than the overall effective interest rate. How does that come about?

3.
The effective average interest rate for offer 1 is about 3.60% for a 10 or 15 year fixed interest period.
It is even cheaper with a 20 year fixed interest period.

4.
In the 3rd offer, the KfW loan is suddenly omitted, although it is cheaper than the 10 year fixed interest period of the MVB.

You have only used local providers. If you want a cheap financing, you should go to a loan broker or independent financial advisor. Then you will beat all 3 offers.

@SaschaW
Sparkasse is not Sparkasse. Each has its own conditions.
Moreover, the loan-to-value ratio also matters.

Hello Musketeer,

thank you very much for your reply.

Regarding 1.
Correct, they are different, I had not considered that in the listing.
We had an offer from the same savings bank with an almost identical rate as in 2:
Savings bank; €165,000; nominal interest 3.85%; effective interest 3.919%; 15 years fixed interest period; 1.96% repayment; rate €800
But the interest remained the same. That is why I did not consider it. We need a follow-up financing next year (heating), so we reduced the rate with the savings bank to leave room.
Repayment of the 3rd variant in the first 10 years €1078, then 6 years €1279, then 5 years approx. €500
End of loan 2035

Regarding 2.
I don’t know either. That is a question I asked myself as well. What is the reason for that?

Regarding 3.
Cheaper would be nice.

Regarding 4.
KFW is omitted because allegedly Riester would be the cheapest. The bank advisor does not want to omit their own from Mainzer Volksbank (MVB).

We also have an offer from Ing-Diba, €133,300 at 4.18% effective with 15 years fixed interest period and additionally €50,000 via KfW with 2.43% effective and 10 years fixed interest period. Total effective interest rate 3.7

Since this is even worse than the savings bank, I did not mention it.

How do I find a good independent advisor? I wouldn’t trust Google for that, and there is no official association for something like that, is there?

Thank you very much for your help!

Hello Sascha,

I personally think nothing of Riester, I don't want to pay anything back in retirement.

Just for the sake of clarity -

You don't have to pay anything back in old age if you don't sell the house. And even then, you can avoid repayment if you only withdraw 30% of the sum and let the rest run as a monthly pension payment.

Best regards

I agree with Musketier ... that works much better and more comfortably... You should fix a loan for at least 20 years. But it also depends a bit on the environmental variables. Why are you getting such bad conditions? Was it due to the property's value? No equity? Poor or uncertain income? That's why it's hard to judge something like that. In general, a loan of 200,000 € over 20 years should be possible at about 3.5 effective.