Interest rate fixation - financing assessment

I have an offer where I can make a full special repayment after allocation if the interest rates at that time are lower than the guaranteed ones from the building savings contract

This makes the building saver really pointless. Paying interest on the full amount all the time and at the moment when it can play to its strengths, it gets terminated.

I would pay 0.85% until then, which is not more than for a normal loan

: But you always pay 0.85% for the TA in the 1st phase on the full amount, since no repayments are made. So, a classic annuity loan at 0.85% would be cheaper (at least for the first 10 years).

A building savings contract is primarily a bet that interest rates will rise in the future (otherwise, only the building savings advisor has benefited), and it cushions (or excludes) the risk.

Secondly, building savings contracts are also useful for leveraging equity in financing, since the building savings contract is subordinate (or, under certain building savings contract amounts, even unsecured). In other words, it can be worthwhile to include a building savings contract for the loan-to-value ratio, which might make the main loan cheaper.

And thirdly, if you are into Riester, you can nicely incorporate your subsidies into financing.

Can you please back up "significantly higher premiums" with numbers? And does this apply to every advisor? I also ask for evidence here.

Otherwise, it's just nonsense.

1% of the building savings sum is the "processing fee". How much the advisor gets is probably a matter of negotiation with the employees. But in any case, the employees will receive instructions that a building savings contract should be preferred for sale.

I find over €300,000 with just under €4,000 household net income quite ambitious. 2% repayment is okay there, after all you are not financing quite a bit here, which definitely occurs. Additional costs of €20,000-30,000 in the next 1-2 years should be expected at least.

That is just one considered aspect (even if this statement is not generally correct).

And what commission does such a consultant receive for an annuity loan? Hmm?

Either the employee gets an hourly wage or if they work there purely on commission (essentially quasi self-employed), really hefty commissions. I don’t know if quasi self-employment is possible/allowed in the bank. The truth is probably somewhere in between, hourly wage + referral commission, which depends on the earnings of the contract. A €300,000 loan over 20 years easily brings in €60-70,000 in interest (revenue) – provided it is fully serviced. It can happen that the loan eventually defaults. But every company has that risk. The craftsman who repaired your heating at home also has the risk that the invoice might not be paid. etc... As a “salesperson” there is normally a commission so that they sell more and benefit from it.