Interest after fixed interest period KFN 297?

Hello everyone,

Maybe a naive question but:
In KFN 297 there is roughly:
- 0% interest for 10 years
- 1% interest for 25 years

But only with a 10-year fixed interest period.
What interest change should I expect after the 10 years?

Example/assumptions:
- current building interest rate 4.3%
- in 10 years the average interest rate is either 3.3 or 5.3%

Is the interest rate of KFN then after 10 years at 3.3/5.3% or at 0/2%?

So relative to the 1% or is KFW then completely out and I simply pay market rates? Am I then tied to the same bank? Why should I choose 25 years then?

I just skimmed through all the topics since March 2023 but found nothing on this.

I also read through the KFW documents a few days ago but didn’t see anything about it. Maybe I haven’t read all the documents. I have to clarify many things right now.

But only with a 10-year fixed interest period. What interest rate change should I expect after the 10 years?

If someone could tell you that.. ;)

Seriously - after 10 years, you will be offered interest rates according to the prevailing market level at that time. It could be 4%-4.5% like today, it could be 2%, it could be 10%. You can calculate a few scenarios to see what those levels might cost you and consider whether you can respond to the trend in any way. If in 5 years, for example, there is already 8% on daily money, you know which direction it is heading. Then instead of special repayments, save properly so that you can reduce the loan amount for the due follow-up loan as much as possible. The non-KfW portion should then preferably have a longer term...

1. The term affects the amount of repayment. With a 10-year term, you have to reckon with 12-13% repayment because the loan will be at €0 after 10 years. Then you are not interested in any follow-up financing. With a 25-year term, you can calculate for yourself what remaining debt will be left after 10 years. 2. At the end of the fixed interest period, KfW offers market-standard interest rates at that time. But assume that compared to other banks, it is not necessarily among the top – rather the opposite. And regarding the last question of why you should choose 25 years: Most simply cannot afford to repay the loan in 10 years. With a maximum loan of [T€ 150], you have a rate of over €1,600 just for the KfW.

Thank you both, that has already provided clarity :))

1. The term affects the repayment amount. With a 10-year term, you have to expect 12-13% repayment, since the loan is at €0 after 10 years. Then you are not interested in a follow-up financing either. With a 25-year term, you can calculate yourself what remaining debt is left after 10 years. 2. At the end of the fixed interest period, the KfW offers market-standard interest rates at that time. But assume that it is not necessarily among the top banks in comparison—rather the opposite. And regarding the last question, why you should choose 25 years. Most simply cannot afford to repay the loan in 10 years. With a maximum loan of €150,000, you have a rate of over €1,600 just for the KfW.

Hi, I don't understand the €1,600. Shouldn't it be €1,250/month with a 10-year term? (€150,000)

Hi, I don't understand the €1600. Shouldn't it be €1250 / month for a 10-year term? (€150,000)

It's quite simple. Repayment always starts only after full disbursement. With the KfW, at the earliest one year after contract conclusion, but you can also agree on two repayment-free years. This means that in the worst case, you have to repay within eight years.