Loan with annuity loan and 2 linked building savings contracts

Hello,

we are currently in the exciting phase of buying a house. It is going to be a new development project (small settlement with 15 semi-detached houses), where we have already non-bindingly reserved one semi-detached house from the developer.

We are both in our early 30s and have a combined net income of about 4,400 EUR.

In recent weeks we have had various financing discussions and currently have a favorite. I would like to present this here once and ask you for an assessment.

322,000 EUR for house + land (including all incidental construction costs) 27,370 EUR for tax office + notary + court 21,000 EUR special requests 27,000 EUR other costs (kitchen, floor coverings, painting work, outdoor facilities, etc.) = 397,000 EUR total

30,000 EUR equity capital

370,000 EUR loan amount

We now have an offer from Deutsche Bank for financing. This consists of two loans (amortization loan and advance loan) and two home loan savings contracts – which secure these loans.

This looks as follows:

--- 1. --- 120,000 EUR amortization loan 2.09% nominal interest rate 15 years term 9 months interest-free provision monthly rate 370 EUR

This loan is secured by the following home loan savings contract, which is saved in parallel and redeemed after 15 years:

86,000 EUR home loan savings sum 2.35% nominal interest rate 11 years term 152 EUR monthly rate (during the loan) 516 EUR monthly rate (after the term of the amortization loan has expired)

--- 2. --- 250,000 EUR advance loan 1.57% nominal interest rate 14 years term 9 months interest-free provision 330 EUR monthly rate

This loan is secured by the following home loan savings contract, which is saved in parallel and redeemed after 14 years:

250,000 EUR home loan savings sum 2.35% nominal interest rate 15 years term 625 EUR monthly rate (during the loan) 950 EUR monthly rate (after the term of the advance loan has expired)

Monthly burden in the first 14/15 years: 1,477 EUR Monthly burden after the amortization loan and the advance loan have expired: 1,466 EUR

Based on the home loan savings contracts, we secure a low interest rate over the entire term and have no interest rate risk with this financing model. Since it is a 100% financing (the equity capital goes towards tax office + notary + court), from our point of view not a bad solution. The costs for the home loan savings contracts are allocated monthly.

We would very much like to hear your opinion. Perhaps there are one or two additional points to consider – if everything is okay, we will of course also be reassured.

Many thanks for your effort! Gatho

Food for thought: What minimum savings amount must be reached for the allocation of each of the two [Bausparverträge]?

The whole thing is calculated so that it exactly works out with the mentioned contributions.

For the [86,000 EUR Bausparvertrag], there will be about [26,000 EUR Bausparguthaben] in 15 years.
For the [250,000 EUR Bausparvertrag], there will be about [100,000 EUR Bausparguthaben] after 14 years.

So I think these amounts should also be within the periods specified in the contracts.

Regarding "flexibility," we thought that we might reduce the installment a bit (e.g., when a child arrives) and then catch up on the missing payments through special payments.

Hello,

I have a general question, hope that is not a problem.

I did not know the term Vorausdarlehen and found the following on Wikipedia:
Ein Vorausdarlehen ist eine Kombination eines Kredites mit dem gleichzeitigen Abschluss eines Bausparvertrags als Tilgungsersatzleistung.

Why is loan 1 then an annuity loan and not also a Vorausdarlehen like loan 2? I somehow do not see the difference.

Thanks and regards

The bridge loan has no repayment, the annuity loan has repayment. Basically, however, it is the same. So loan 1 is a "quasi-bridge loan" as well as an annuity loan. And it is contractually not linked to the building savings contract.

The whole thing is calculated so that it works out exactly with the mentioned contributions.

Just have it put in writing that the matching allocation is guaranteed... I’m curious about the advisor’s reaction. Although, actually, I already know it.

And first pay 90,000 euros in interest before even starting to repay... if you like, you can do that.

Just get it in writing that the appropriate allocation is guaranteed... I'm curious about the advisor's reaction. Although, actually, I already know it.

And first pay 90,000 euros in interest before even starting to repay... whoever likes that can do it.

What do you want to say with that? How do you think the reaction will be?

And about the 90,000 EUR interest, without repaying beforehand... seen that way, it doesn't sound positive at first. But what consequences would that have?
With the concept, we are buying security -> no interest rate risk. Don't you find that positive?