How successfully did you negotiate?

But 0.7% is more like a 50,000 euro difference over the total duration.

That would be roughly like taking the 1000 euro TV from the weekend sale out of the store for 400 euros. That’s not possible and that doesn’t exist.

I looked at the interest rate curve, so what?

No, it wouldn’t be like that, because what you are outlining would be a 60% saving! With an investment volume of 400,000€, that would correspond to 240,000€ savings! So the example is flawed. Put into the correct relation, the saving would be 12.5% – so 125€. And that – I think we can agree on – is always possible when buying a TV.

I know how my acquaintances negotiated. Similar patterns, so that sounds absolutely credible to me. Whether that’s still possible today is another question. But that they managed it, I have little doubt about.

Excuse my harsh words now: But what are you babbling about? Investment volume? You have to repay the loan amount. I am talking about the costs, specifically interest costs. And there I am right with 60% more or less pulled out of thin air.

Please do not explain my job to me.

A bank cannot adjust by 70BP without interest rate changes in the market and without changing the parameters (such as equity or collateral or fixation) (unless the bank was previously 50-60BP too expensive).

But be honest. No bank will give the best conditions with the first offer. The first thing our LBBW advisor told us: If you have a better offer, just let us know, we will give you a better one. And that's exactly how it was, the banks / Interhyp etc. play each other off. My tip: Keep going back and forth until someone finally drops out. The interest rate of the LBBW was "allegedly" approved by the board.

The interest rate of LBBW was "allegedly" approved by the board.

What do you mean by allegedly? There are competency directives... up to 10BP over Noko you can decide yourself, up to 15BP the department head, from 20BP a board member and from 25BP only the entire board. There is no allegedly there, or has it never happened to you at MediaMarkt/furniture store etc. that someone has to ask first?

Thanks for the info. I hope it was not just a board with me, otherwise even more would have been possible :P

But be honest. No bank will give the best terms right away with the first offer. The first thing our advisor at LBBW told us: If you have a better offer, just let us know, we'll give you a better one. And that's exactly how it was, the banks / Interhyp etc. play each other off. My tip: keep going back and forth until someone finally drops out. The interest rate from LBBW was "supposedly" approved by the board.

The game ended very quickly for me and I was immediately told that they couldn't compete. Just post a contract and black out the relevant parts.