Home financing with interest loan and Riester or without Riester

Which LBS tariff are you financing with? Is the 2.2% for the building savings contract fixed, or do you have a tariff where, depending on how much you pay in within the 15 years, you can even get better conditions?

We financed with the LBS W4. The loan basically runs at 2.25% in the worst case with 30% savings. With 45% savings, the loan interest rate goes down to 1.5%.

I have to inquire about that; I didn't know such a thing even exists.

Hello kbt09

if we have miscalculated, the comparison of course is no longer valid. Do you mean by "the annuity loan can be terminated after 10 years" that the interest rate could then be even lower or what would be the point of that?

Yes, for example, that would be one scenario. Another would be a lottery win or an inheritance, then one could pay off the remaining debt amount in one go without a prepayment penalty.

Just a question, does your son actually inform himself and try to understand what financing means and what the contracts mean for him?

We do all of this together, I just ask in the forum. We make the appointments together as well and he calculates everything on sheets and iPad. It's fine, he just works in shifts but puts a lot of thought into it. It's his future after all.

Regarding your response about the incorrect calculation, I now have the complete offer here.

Since it will not be paid in full for 30 years (1068€ and 1000€), the total sum for the building savings contract and annuity loan is 67,000€ in interest plus the 290,000€, totaling 357,000€.

Due to a possible double burden (rental apartment and loan), for example, he only fully pays the building savings contract starting from 9.2021, and the annuity loan from 9.2020.

I have attached the offer for clarification

You decide ... I'm just not a fan of repaying a large amount of debt (EDIT: only paying the interest) just to pay into another product that has the "expected allocation" as a guideline. It's just not my thing.