Jochen104
2015-01-22 13:37:01
- #1
I will now try to explain a building savings contract simply and understandably:
A building savings contract with a savings target consists of a savings phase and a loan phase. In order to use the loan, you have to save a certain percentage of the savings target (usually 40 or 50%).
Example based on a contract with a savings target of €60,000 and 50%: First, you have to save €30,000 at a certain interest rate. When this (and other factors) has been achieved, the contract reaches allocation. Then you have the choice whether you want to have the €30,000 savings paid out or whether you want the €30,000 savings + €30,000 loan. The conditions and repayment rate etc. are already set at the time of contract conclusion.
More details can also be found on various websites – or very importantly: with the respective contract.
If the contract was concluded many years ago, it will probably not be worthwhile to use the loan (interest rate too high). However, you should reconsider this when the contract becomes ready for allocation. (Decision for building loan if the building loan rate is lower than the normal loan interest rate and the monthly burden fits.)
A building savings contract with a savings target consists of a savings phase and a loan phase. In order to use the loan, you have to save a certain percentage of the savings target (usually 40 or 50%).
Example based on a contract with a savings target of €60,000 and 50%: First, you have to save €30,000 at a certain interest rate. When this (and other factors) has been achieved, the contract reaches allocation. Then you have the choice whether you want to have the €30,000 savings paid out or whether you want the €30,000 savings + €30,000 loan. The conditions and repayment rate etc. are already set at the time of contract conclusion.
More details can also be found on various websites – or very importantly: with the respective contract.
If the contract was concluded many years ago, it will probably not be worthwhile to use the loan (interest rate too high). However, you should reconsider this when the contract becomes ready for allocation. (Decision for building loan if the building loan rate is lower than the normal loan interest rate and the monthly burden fits.)