How to integrate a building savings contract

Hello Forum,

I have a question about financing a home.

The following key data:

Planned house purchase at the beginning of 2011 with max. 150,000 costs (area WHV)
Equity: approx. 40,000
Building savings contract presumably allocation I/2013 with 24,000.00
Household net income: 2,700

Since the house purchase has to take place next year, I have a question about the building savings contract. Can the building savings contract be directly included in the financing, even though there are about 24 months between the house purchase and the allocation? My building savings partner BHW has made me several offers which, however, are definitely not an option for me. Because interest would already have to be paid on my savings.

Second question:
Would it be advisable or possible to get a financing commitment now, since the interest rates are very low, even though no property has been chosen yet, but my maximum amount is 150,000.

Thank you very much!
Rotti

Hello Rotti,

whether it makes sense to include your building society loan in the financing depends on the interest rate for your BHW building society contract (these have constantly changed over the past years and you really have to look closely!).

The monthly total installment amount is also decisive. Because building society loans have a rather high repayment portion.

A financing commitment can only be given once all the data on the property is finalized. As long as you are still searching, you cannot apply for or receive a financing commitment.

Best regards

M. Thiemann

Hello Rotti,

whether it makes sense to include your home savings loan in the financing depends on how high the loan interest rate is for your BHW home savings contract (these have constantly changed there in recent years and you really have to look very closely!).

The total monthly installment amount is also crucial. Because home savings loans have a fairly high repayment portion.

A financing commitment can only be given once all the data about the property is finalized. As long as you are still searching, you cannot apply for or be granted financing.

Best regards

M. Thiemann

Thank you very much for the information!

1. The loan interest rate is 1.9%. The home savings contract is currently being paid with 190 euros monthly. I also had this amount in mind to repay the loan.

2. I more or less suspected that about the financing commitment. Can the bank/lender give me a ballpark figure (monetary) based on my key data to realize my financing? I don’t think my planning is going off the rails, or am I wrong??

Regards Rotti

Hello Rotti,

the financing could look as follows:

150,000 EUR purchase price
7,800 EUR incidental acquisition costs
157,800 EUR total costs

40,000 EUR equity
47,500 EUR KFW 3.00%/3.03% + 1.70% repayment = 186.04 EUR monthly
70,000 EUR construction loan 3.40%/3.45% + 1% repayment = 256.67 EUR monthly
= 442.71 EUR monthly total rate
Mixed effective interest rate = 3.28%

Please email me your email address, then I will send you the complete offer by email.

Best regards

M. Thiemann