Is renegotiation possible for a home loan?

Ask people who financed about 10 years ago, they were still charged 4-5%, they would have been dancing on the table in jubilation at 1.8%...

Well, I financed 15 years ago at 1.9%, that wasn't so bad. However, it was tied to the Euribor and could have been worse. But you're right, it's not so easy at the moment. Still, it’s always worth asking around, as some banks are happy to refinance a solid loan.

To possibly avoid the risk of termination by us

My sister had financed at 5.0x% in 2007 and that was really, really good back then. When the downward trend came, we inquired in writing with Sparda whether the loan could be adjusted to current conditions prematurely. The answer was NO. Only the reference to the termination after 10.5 years was communicated to her, and that she can only terminate in the event of the sale of the property, after payment of a prepayment penalty. If you should succeed, please share it here with us, I would then also like to try and renegotiate my 1.7% from 2015. Especially because we actually did not need the 15-year fixed interest period and would have managed with 10 years..

...interesting discussion. I really don’t want to sound rude, but in my mind’s eye, I see the bank employee either suppressing a laugh or dropping their jaw onto the edge of the desk at that question.

Now seriously... you have a contract. Can contracts be changed? Of course, if both parties agree. Now ask yourselves why a bank would agree to something like that after two years. I can still understand if it were said that the fixed term would only run for 1 or 2 more years; then the bank would have an interest in saying let’s extend early. But with 13 years of remaining fixed interest and 8 years until the first termination option...

If the bank were to adjust the terms now, it would have foregone money for at least 8 years. From now on. And depending on refinancing, it might even lose money because the bank has itself secured the money for that period.

I’m curious about reactions... please feel free to keep reporting here.

Edit: Maybe also call the insurance in this context. The death benefit was not needed afterwards... maybe the amount can be reimbursed.

To possibly avoid the risk of a termination from us The question is whether we currently get such favorable conditions elsewhere that a refinancing would make sense

I wanted to pick this up again because it sounds as if you believe you can just cancel the contract. You cannot do that. You can terminate properly at the end of the term (or the contract then ends automatically) or after 10.5 years following full repayment, provided no changes have been made to the contract, thanks to a consumer protection law. You can only terminate extraordinarily in exceptional cases. These are e.g. death or sale of the property. It is a misconception that you can always and at any time get out of the contract by paying a prepayment penalty.

Cool discussion, I like it! And I mean that seriously, as we have had the same discussions within the family. I rather don't think the bank employee would start laughing, since we are indeed very lucrative customers of the company. The termination referred less to the home loans and more to other investments with the bank. Still, thanks for the hint that terminating the loan is not necessarily possible, I didn't know that. I think if both parties agree, any contract can be changed; the reactions here show that opinions are certainly divided. I will report back on what comes out of our conversation. Thanks for your help... oh yes: of course, I am also very satisfied with 1.8%. Historically speaking, that is one of the cheapest financings of all time and we are already paying less interest for our absolute dream property than we did previously in cold rent for the not-so-nice apartment....

I think if both parties agree, any contract can be changed

Yep, it's all just a matter of price. And talking really helps – in the worst case, you get a no and nothing more happens. With us, it regularly happens that old (still running) loans are restructured through new financing. Then the customer pays the actual loss we have due to the new refinancing, or simply finances it and is happy about preserving their liquidity.