Home purchase financing despite high interest rates?

We need a loan of €150,000 for this. We were a bit shocked by the first offer, that we would have to repay it over 30 years at 3.4% interest.

At €686 and €513 per month = €1199/month, the following results [ATTACH alt="1704553213655.png"]83525[/ATTACH] and from that the repayment schedule, which then says that you will be finished in less than 12 years. In the setup with a building savings contract, you are at over 13 years. [ATTACH alt="1704553323826.png"]83526[/ATTACH] So ... always calculate yourself ... how do the 30 years come about? With half the rate or what?

- Where is my flaw in reasoning? 1.69% is much less than if we were to pay 3.4%.

For the building savings contract, you have to contribute 40%. The interest rates therefore only apply to the remaining part. And until then, you enter into a so-called negative interest differential transaction. You pay 3.4% interest on the interim financing and receive 0.1% (or similar) for the money in the building savings contract. You cannot compensate for this with the low interest rate afterwards.

Wow, thank you very much. That makes sense, good that I brought this up here. I checked again. The 30 years came from the initial offers. However, back then we calculated with a loan of €230,000 at 3.47% and a term of 20 years. Since we do not want to repay for 30 years and thereby end up paying the bank a third in interest, we have increased the equity and only need a €150,000 loan.

And here is an update: We will take the loan of 230€ after all, then we have a buffer. We have now independently obtained offers and get 3.06 for a 10-year term.

Why not alternatively with 20 years? Because of interest rate security. After 10 years anyway the option to change something if required.

Why not alternatively with 20 years? Because of interest rate security. After 10 years anyway the option to change something if required.

At 3% no interest rate security is needed, especially not with the amount of 230,000 EUR. Assuming reasonable repayment, after 10 years there is so little left that even follow-up financing at 6% should not be a problem.