Home financing with interest loan and Riester or without Riester

At first reading, I had understood your son's rejection was due to higher interest rates and justified this with 20 instead of 15 years fixed interest period.
However, you actually meant the monthly repayment...
Nevertheless, if I were you, I would once consider the total costs and not just the monthly repayment.

I just roughly calculated this and was surprised that in option 1 the costs were quite manageable. You really can’t get close to that with a pure annuity loan at this low repayment.
Assuming a 1% closing fee for the home savings contract, I come to about €66,500 in costs with practically no risk. I would probably now tend to option 1, especially since if interest rates are still low in 15 years, you can refinance to an even better rate than 2.2%.
With a pure annuity loan over 20 years and an assumed nominal interest rate of 1.65%, you would already have over €62,000 in interest costs and an outstanding balance of just under €74K after 20 years, all with a consistent monthly payment of €1,160 from the start.

It’s not even about the insolvency of the insurance company, but rather about fundamental financial difficulties. You’re welcome to inquire and read up on that. The insurance policies for company pension schemes can become non-payable relatively quickly. And I don’t know how it is with you, but often the contracts are concluded between the employee and the company, so the company has to cover the defaults. Which could immediately ruin them.
But that goes too deep into the topic and is beyond the scope here. This is exclusively a warning that I personally would NOT rely on the payout for loan repayment.

With other products, it is sometimes astonishing how much is paid in and then guaranteed to be paid out. You really have to check carefully.

That is now off-topic and I haven’t read the entire original post, but if it is a company pension scheme, shouldn’t the Pension Protection Fund step in in case of insolvency?

I just roughly calculated that and was surprised that the costs for option 1 were quite manageable. With a pure annuity loan, you probably can't get close with such a low repayment. Assuming a 1% closing fee for the building savings contract, I come to about €66,500 in costs with virtually no risk. I would probably tend towards option 1 now, especially since if interest rates are still low in 15 years, you can refinance at an even better interest rate than 2.2%. With a pure annuity loan over 20 years and an assumed nominal interest rate of 1.65%, you would already have over €62,000 in interest costs and a remaining debt of just under €74K after 20 years, all with a continuous rate of €1,160 from the start.

Can you briefly explain how you calculated these sums? With option 2 including the KfW, the financing of the remaining debt of €33,000 after 10 years would also be added. That’s still an unknown amount in terms of size. I have the feeling no one wants Riester; I have not found a complete calculation including all points anywhere yet. So an overview with allowances, tax advantages, taxation, etc., etc.

Now I just noticed an error in my program. Now a few things become clear to me. Sorry, there was still a change in the repayment amount of 350€ per month factored in from my own calculation. That of course changes everything. Sorry, now I have to recalculate. But I would have been surprised if it had turned out so cheap in this case, since the values, as I mentioned at the beginning, somehow don't sound that great.

So I have now corrected my mistake and come to the following values:
Interest in the first 15 years: 15*12*340.75€ = 40,890€
I assume 1% closing costs and no interest, since these would probably be swallowed by account management fees, and then arrive at a building loan amount of 168,160€ at 2.2% interest. I assume that the building saver would then hopefully be ready for allocation. This would result in a repayment period of almost exactly 14 years with a constant rate of 1,160€. In the process, almost 27,500€ interest would be due again.
This means total costs of just under 71,300€ for variant 1.

Sorry again for the input error!

This would be the worst case in this situation. If interest rates are still very low after 15 years and a follow-up financing at e.g. 1% is possible, you would be finished 1.25 years earlier and would only pay just under 11,000€ instead of 27,500€ in interest.
So total costs worst case: 71,300€ with a term of 29 years
Nice case (1% follow-up financing): 55,000€ with a term of 27.83 years

Compared to that, the annuity loan over 20 years with a 1,160€ rate means 65,600€ interest at 1.65% nominal interest rate and just under 74,000€ remaining debt. If this were again financed at 1% (currently probably even cheaper), about 2,000€ interest would be added and you would be finished in just under 25.5 years.
Total costs here are therefore about 67,000€ — maybe 70,000€ with very bad interest in 20 years.

Now you have to decide what you prefer. The building saver definitely has the chance to become significantly cheaper if interest rates remain low.

Hello The BSSumme would be 290,000€ though, or am I mixing something up here. The amount from you would only be the accumulated capital of 169,000, so about 57% of the BSSumme? Right??