Home bank financing, building society saver, repayment

What do you mean by saying that this is not thought through to the end?

Of course, it is possible that in 10 years the interest rate jumps to a utopian(?) 15%. Is that the risk you are talking about?

15% is rubbish anyway. I also consider 3.7% impossible (when you look at the conditions), but it’s not that far off, so an interest rate increase of 2% is not unrealistic. (I still don’t believe it)

What about the guaranteed additional costs for the first 10 years with a 15-year term? Same repayment? How high is the remaining debt in both variants? The question that ultimately matters: Can I still afford the residual payment if interest rates rise? And how much money is security for 5 years worth to me? Because the 15-year variant is, ceteris paribus, always the more expensive option at first.

My current tendency is really to take the 10 years with my main bank, with a repayment rate of 4% at 1.59% interest. But without the building savings contract. That is manageable for us in terms of payment, and we could even accomplish something extra with special repayments.

The 1.59% is definitely only achievable in combination with the building savings contract, which then serves as additional security. Without the building savings contract, the interest rate for a 10-year fixed interest period is likely to be somewhat higher.

My financial advisor thinks I should go for 15-20 years and reduce the repayment rate and try to solve everything with special repayments.

If you have enough leeway, I wouldn’t reduce the repayment rate too much, otherwise you take away the chance for special repayments if more money than the 5% becomes available. It is possible to agree on 10% special repayment options in some cases, but that is probably again associated with an interest rate surcharge.

Going for 20 years when you expect to be finished in 15 years is complete nonsense.

Roughly calculated: 1000 cold rent + 800 savings rate minus 100€ additional incidental house costs compared to the apartment minus 300€ reserves for renovation results in 1400€ financial leeway.

1400€ minus the 940€ installment leaves 460€ surplus per month. So just over 5000€ surplus per year.

I find the rate just over 900€ quite well chosen. This leaves room for special repayments upwards and downwards, and with about 5000€ in special repayments, you can manage to pay off in 15 years.

You could post the interest rates of Ing-Diba, where you can calculate more precisely, since I – as mentioned above – don’t believe that you will get the 1.59% interest rate. I personally would go to a broker. There you have the interest rates of all banks at a glance and can find the most favorable one for you without much effort or negotiation skills.

Also, get an offer for a full repayment loan over 15 years if you plan to be finished in 15 years anyway. It is an alternative where the monthly burden is higher, but you will probably get a better interest rate and you do not need [Sondertilgung].

Thank you very much for the great answers :-)

: Of course I know that the 15% is not realistic.

: We had an offer from ING-DiBa of 1.54% two weeks ago. Unfortunately, I have meanwhile learned (from my financial advisor) that this was probably an offer and is no longer available now. She said that a rate of 1.64% is probably to be expected. But I would still have to clarify that.

Since we have been well advised for years and of course have no experience at all with such financing (Ok, yes, we once financed a digital camera years ago with 0%), we thought it is always better to go to the house bank. Since you know each other... But as mentioned here too, this trust has taken a hit (building society savings contract that does not make sense and only serves the bank's cash register).

: A full repayment loan is actually not an option for me, as it is relatively inflexible.

End of the story...

1.59% at the S without a building savings contract or anything.
Plan A finished in 10 years.
Plan B finished in 15 years.
Plan C will not exist!

Wish me luck, thanks for the answers.

Best regards, Stefan

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