Loan with annuity loan and 2 linked building savings contracts

I am personally not a fan of [Bausparvertrag], especially not in a low-interest phase. Just have a regular annuity loan offered to you and compare both.

Hello,
I would get two alternative offers:
An annuity loan with long fixed interest period (20 or 25 years - interest rate security) and
An annuity loan with medium-term fixed interest period (10 years - high repayment with low interest and follow-up financing).

Then compare all variants with all costs and pitfalls (amount of interest in follow-up financing, problems with allocation, etc.) in an Excel table. Then you will see which variant produces which total costs.

First of all, many thanks for your numerous help...

@
Why is it assumed that there is no guaranteed and suitable allocation?

@[B] [/B]
With a pure annuity loan over 20 years, however, we would have a noticeably higher interest rate or with a pure annuity loan over 15 years a large residual debt for which, for example, a new interest rate would have to be negotiated in 15 years. With a longer term, the interest rate becomes uninterestingly high, since our equity and the loan-to-value ratio would also be higher.

KFW funds are not planned (although Kfw70 is being built).

The rate of just under 1480 euros amounts to almost 34% of your income.
In addition, there are still the monthly ancillary costs for the house, insurance, property tax, trash, gas-electricity-water, probably about 250 euros per month!

I would possibly pay a small surcharge, secure the loan for 20+ years and definitely have a repayment change clause included! If a child comes along, an income will first be lower and expenses will increase over time (daycare etc.)!

Do you see the monthly rate of 1480 EUR (about 34% of the income) as too high? We have calculated the ancillary costs you mentioned more generously and assume 300 EUR per month.

Income is distributed as follows:
Man: 2700 EUR
Woman: 1700 EUR
Less all monthly expenses. That means including groceries and savings rates (200 EUR / month reserves for the house, 150 EUR reserves for miscellaneous and 100 EUR for vacation - every 2 years) we still have 850 EUR free available together, or 425 EUR each - however you want to see it.

@
We have tasked our advisor with drawing up a concept where we would have no interest rate change risk over the entire term. Therefore, I actually don’t find the solution with a building savings contract (in our current case two contracts) so disadvantageous, do I!? Because we thereby secure low interest rates over the entire term of about 30 years.
I have to admit that I am already somewhat confused… are we making such a big mistake with the solution presented in the initial post?

@
With an annuity loan over 20/25 years, the interest would rise considerably (it is a 100% financing after all) and the loan-to-value ratio would then be accordingly. Also, there would be a residual debt left after 20/25 years that would remain as an "uncertainty".

Thanks for your effort!

@ Why is it assumed that there is no guaranteed and appropriate allocation?

Because that is unusual. I can't think of any BSK that offers that off the top of my head.

Because this secures us low interest rates over the entire term of approximately 30 years.

With an annuity loan over 20/25 years, the interest rate would increase significantly

These two statements are suspicious. Interest rate security over 30 years is supposed to cost less than interest rate security over 20/25 years? I would investigate and look for the catch in this matter (Note: The costs of the building savings scheme do not seem transparent and comparable to me.)

Why is it assumed that there is no guaranteed and appropriate allocation?

Wikipedia says:

Since the building savings loan is essentially paid out of the accumulated funds of other savers whose contracts are not yet mature for allocation, it is not exactly predictable how much capital will be available for allocation. Therefore, no fixed valuation number can be given at which a contract will be allocated. Building societies are also not allowed to make binding statements about the prospects of allocation.

So if your contract is calculated to "fit exactly," but contrary to expectations the allocation occurs 6 months later, then you have to arrange interim financing and incur additional costs, etc. It can go well, but it doesn't have to.