Is the financing offer good?

Hello home builders,

we (M 25 + W 27 + child 1) are currently in the process of buying a house. We have already found the suitable property and had the first appointment at the bank.

Our plan:

House: €180,000
Additional costs: €9,600 (notary, property transfer, [PRIVATVERKAUF])
Renovation: €55,400 (roof, small bathroom, kitchen)
Total: €245,000

Equity: €95,000

So we need to borrow €150,000.

Both are in permanent, unlimited employment.
She: €1,050 / net
He: €2,200 / net

We have now received the first offer from the bank.

Home loan savings contract:

We pay about €700 for 10 years (1.49% interest = €198 / the rest into the home savings contract)
After 10 years, we start repaying the loan. Remaining debt approx. €89,000

We would then repay this within 11 years with 2.5% interest and a monthly rate of €750. Special repayments are possible at any time in the second half.

What do you think? I find it a reasonable offer.

Thank you very much for your replies!

An open and honest word?

You are naive, the offer is too expensive and it can be done much cheaper. Both with the same fixed interest rate period, and even cheaper with a manageable residual risk after 10 years.

Short version, as there is no time right now.

I would have 2-3 counteroffers made by intermediaries. One can also include useful [KFW loans] here.

I don't see any eligible renovation costs there, and the homeownership program is probably more expensive than any annuity loan from a bank with that loan-to-value ratio. So no KFW.

Sure, I wanted an open and honest opinion.

We had a second appointment for comparison today.

Here is what the offer looks like:

Loan still 150,000€

We pay a loan with 0.7% interest for 2 years = 400€
Plus 300€ into a building savings contract

After these two years, there is a remaining debt of about 140,000€
Then we pay for 10 years with an interest rate of 1.45% = 400€
Plus 300€ building savings contract.

And then the building savings contract within 9 years with a rate of 758€ / interest rate 2.25%

So better. Also here, special repayments are possible at any time after the first loan.

It is important to us – to pay relatively little, have security, and special payments to be possible.
Since we are both still young, the term of 21 years is also completely fine for us.

Best regards

That is even more nonsense (although apparently cheaper) than the first offer.

If you are concerned about interest rate security, have an offer for an annuity loan with a 20-year fixed interest rate provided by an insurance company (or broker).

Or, because the outstanding debt after 10 years is really manageable, an offer with a 10-year fixed interest rate assuming a fictitious term of 20 years.

In both cases, you should come out cheaper overall.