How secure is the collateralization of the remaining debt via a home savings contract?

You save into the building savings contract over a period, in our case the term of the loan. When it is then allocated, you receive 1.5 times your savings amount as a building loan on top – at exactly the 1.15% interest rate I mentioned above. With the amount paid out, I repay the remaining balance of the annuity and afterwards the building loan is repaid. The rate is based on per mille of the building savings amount. Prepayments are allowed at any time and as often as you like.

The rough outline has been mentioned many times, I want to know concretely. Please calculate your exact case, then one can compare.

The point lies in the guaranteed (low!) interest rate at the end. Whether that was really necessary is known: afterwards.

Yes, but now honestly. How high do the interest rates have to rise for it to be worthwhile? Consider the following calculation: - you pay in 440€ every month, that's 79.2k over 15 years. - as a special repayment, you save yourself tax-free 4% interest, which amounts to 28.8k over the total term - the value of the special repayments is therefore almost 110k - in the building savings contract you get 0.1% interest, that’s 600€ over the total term. The capital gains tax would theoretically be due on that, but we ignore it here - there is also a closing fee in the building savings contract; if they actually give you 1.15% loan interest, it is certainly quite high The low interest on a 110k building savings loan would have to get you over 30k more compared to a normal loan of 80k. Now the big question... what interest rate do you assume? Base scenario 4%, 2000€ rate, you’re done in 4 years, paid interest about 6k Scenario 8%, 2000€ rate, you’re done in just over 4 years, paid interest about 15k Scenario 10%, 2000€ rate, you’re done in 4.5 years, paid interest 20k You see, the building savings contract can only win in scenarios where 190k can buy a mid-range car in 15 years...

So: if in 15 years 190k should be allocated at 1.15%, then you can probably save 50%, does that make sense? Not really, I would rather pour the 85,000 EUR into a special repayment (where you pay 4%!) = 5,666€ per year.

Short example:
380,000€ financing for 15 years
4% interest
190,000€ remaining debt after 15 years
Costs for the 15 years = 177,000€

If you now put the 5.66k as a special repayment every year here instead of a [Bausparvertrag]:
Costs for the 15 years reduce to 148,000€ (so already saved 29,000€!)

Then 85,000€ remaining debt remains, and now what interest do you have to pay with 29,000€???
In addition, you have also saved the closing fee (1,900€ or even 3,040€)
and the interest (1.15% which would apply after the 15 years!)
So in total certainly 34,000€

If you continue to pay 2,000€ monthly as a rate after 15 years, then the 85,000€ would probably be paid off after 5 years, and then the parameters would be as follows:
Interest rate: 14%
Repayment: 14%
After almost 5 years you have paid it off and paid about 33,000€ in interest!!!!

So if you assume that the interest rate will be 14% in 15 years, then the [Bausparer] would make sense in your case.

The rough outline has already been mentioned dozens of times, I want to know it concretely. Please calculate your exact case, then we can compare.

Yes, but now honestly. How high do the interest rates have to rise for it to be worthwhile? Here's the calculation:
- you pay 440€ every month, that’s 79.2k over 15 years.
- as a special repayment you save yourself tax-free 4% interest, that’s 28.8k over the entire term
- the value of the special repayments is therefore almost 110k
- in the home savings contract you get 0.1% interest, that’s 600€ over the entire term. In theory, capital gains tax would still be due on that, but we’ll ignore it
- additionally, there is a closing fee in the home savings contract; if they really give you 1.15% loan interest, it’s probably quite high

The low interest on 110k home savings loan would have to save you over 30k compared to a normal loan on 80k. Now for the question... with what interest rate are you calculating?
Base scenario 4%, 2000€ rate, you’re done in 4 years, interest paid about 6k
Scenario 8%, 2000€ rate, finished in just over 4 years, interest paid about 15k
Scenario 10%, 2000€ rate, done in 4.5 years, interest paid 20k

You see, the home savings contract can only win scenarios in which 190k can buy a mid-range car in 15 years...

Thanks, I’ll check that.

For now, only the annuity loan has been applied for, it’s not a combo package, so nothing has been “purchased” yet.

I haven’t had time to calculate it myself so far, since it had to go quickly now, I wanted to get it through before the next interest increase. Besides, we are buying from my parents, who now needed cash because of their project. The time I had, I first spent reading into the topic of the home savings contract… until recently I wouldn’t have even known what to calculate there.
I requested the home savings contract from the advisor by email, but it hasn’t been finalized yet. I assume as long as we haven’t signed anything there, I can cancel it again free of charge!?
I just don’t like having to take back my own word, but well.

The rough outline has already been mentioned dozens of times, I want to know it concretely. Please calculate your exact case, then we can compare.

Will come once I have followed ’s calculation, I’m sitting here right now with an amortization calculator.

So if the financing is applied for, and 1) you anyway plan to pay the 5666€ ON TOP per year, so 500€ more monthly, that means 2500€ as a monthly installment.

then the consideration would rather be like this:
what would the 10-year fixed interest rate cost (probably considerably cheaper than the 15 years)
then put the repayment into the building savings contract, so that it takes effect in 10 years
(I would choose one here where you have to save less, but can also repay over 10 years, so about 2.20-2.35%)

and switch after 10 years.

I think this option would be cheaper than the 15 years ;) but it depends on the interest rate for the 10 years (I can also be helpful there ;)

probably the total costs would be below the 177,000€ you roughly have above ;)

So:
if in 15 years 190k are to be allocated at 1.15%, then you probably have to save 50%, does that make sense?

It is supposed to be 40%, but allocation would already be from 50k. Completion 1.6%

As I said, for two reasons it had to be done quickly now, I had less than a week. Since an annuity is unavoidable and the amount and the property are fixed, we had the 380k arranged for 15 years.

By email, I had informed the advisor that the offer with building society saver over residual debt would be "our thing".

The building society savings contract is not held at the bank and is not assigned, it is not a combo package.

So I might cancel that again, do you see a problem with that? So far we have signed plenty, but only consent for processing our data, many times.