Home financing ever possible? Probably not!

Was there really such financing? I still financed around 1% and it never went below 2%, mostly even 2.5% repayment. No bank simply did that. If at all, only with much smaller financing amounts (but then the residual debt is not a problem) or other securities in the background.

Yes, we had it recently here in a thread. 1.x% interest and overall under 3% annuity. It wasn't bad because stocks were invested in alongside. But it does seem to have actually existed.

Of course there is that. I have €475K at 0.5% for 10 years (annual repayment rate change possible between 2% and 5%) and €100K at 0.75% for 25 years. That makes you think these days, but there is still time before it gets serious. Just the thought that a current follow-up financing would increase the interest amount eightfold...

For the main loan, I have lowered the repayment to 2.5% since the beginning of 2022 and set aside the difference by standing order.

Were there really such financings? I still financed around 1%, and it never went below 2%, usually even 2.5% repayment. No bank simply did that.

You will be surprised at what financing brokers managed to make possible. Of course, it was not sensible. But many wanted their own house at any price. Often a long fixed interest period was then used as a substitute for proper repayment. I see my 10 years calmly for now. With about 3% for the follow-up financing, I would be about the same with the longer terms. That means at the current 3.5-4%, I am making the worse deal, but it is still far from a catastrophe. If inflation settles at 3-5% and salaries keep pace, I can easily increase the rate in 2031. And who knows, maybe in 2028 the possibility will arise to finance cheaply with a forward contract.

In the main loan, I have reduced the repayment to 2.5% since the beginning of 2022

Which is far, far away from the 1% Tilgung discussed above.

...and overall below 3% annuity.

0.5% + 2% = 2.5% ;)

The purely nominal repayment is only one aspect when considering the remaining debt. In reality, the development of the financing burden is more interesting, and for that, the annuity is decisive.

The problem is that many repay very little with low interest rates at a repayment rate of 2%. With high interest rates like 5%, there is much less remaining debt at the end with 2% repayment. Many are not aware of this.