Interest rate / rate - bank calculation

Just as a little assistance: The bank I work for calculates using a so-called 8-percent annuity. It calculates which installment would result from an 8 percent annuity applied to the remaining debt after the fixed interest period. This calculated installment is then compared with the contractually agreed installment for the fixed interest period. The higher of the two (actual installment versus 8-percent annuity) is then used in the household budget calculation to see if the customer can afford the loan in the long term.

Thank you for the insight!

Just a little help: The bank I work for calculates using a so-called 8 percent annuity. So they calculate what payment would result from an 8 percent annuity applied to the remaining debt after the fixed interest period. And this calculated payment is then compared with the contractually agreed payment for the fixed interest period. The higher of the two (actual payment versus 8 percent annuity) is then used in the household budget calculation to see if the customer can afford the loan in the long term.

Ok, the 8% annuity on the amount still outstanding after the fixed interest period? So, assuming currently with a 20-year fixed interest period a payment of 1600 euros. After 20 years, 200k is still outstanding. 8% annuity on that would be 1333 euros payment. Since that is lower than currently until the end of the fixed interest period, it is checked whether the 1600 fits into the household budget. Thanks in advance for the tip! It’s interesting because the lady from Interhyp mentioned something about 6.5% on the phone. Since a much higher amount came out then, I believe it is still something different that they are calculating there.

But Toxi already said that every bank calculates differently.

: Yes, your calculation is correct. According to the guidelines at my bank, we would compare the current rate of €1,600 with the €1,333 8-year annuity after the fixed interest period.

But as several others have already said here in the thread: every bank has different requirements here. I just wanted to illustrate how it works in practice at one(!) bank.