Loan with annuity loan and 2 linked building savings contracts

@ With an annuity loan over 20/25 years, the interest rate would increase considerably (since it is a 100% financing) and the lending value would be correspondingly adjusted. Moreover, after 20/25 years there would also be a residual debt remaining as an "uncertainty".

With an annuity of 1477 euros and an amount of 370,000 euros, you would need an interest rate of 2.57% over 30 years to be finished in that time. That is indeed difficult, but I would still consider having it offered to me. Are you sure with your variant that all costs of the building savings contract [contract fees (estimated at 3,360 euros), account maintenance fees, etc.] are included?

Hi!

Very nice that you are so involved with the topic!

The closing fees for the [Bausparvertrag] are 1.6% per contract and are proportionally paid monthly over the contributions made in the first period. Otherwise, I am not aware of any costs in this model (also no account management fees).

Regarding the allocation of the [Bausparvertrag], I will definitely inquire again, that has to be right of course. "nordanney" and "Bieber0815" have unsettled me a bit there. Of course, I don’t want any nasty surprises in 15 years.

As "jochen104" already said, a classic annuity loan does not exist for this amount of 370,000 EUR and 30 years – at least not at a "affordable" rate (1,500 EUR is our target limit) or a reasonable interest rate. A combination with a [Bausparvertrag] then doesn’t seem unreasonable, does it?

Although with us there is the "special feature" that there are two [Bausparvertrag] and 1x an annuity loan + 1x a forward loan.

Best regards
Gatho

It doesn't matter what the thing is called, just call it "Through the Knee into the Eye" loan.

Serious question: Why do you absolutely want this interest rate security?

Regarding account management fees, I would double-check. How are the building savings contracts interest-bearing during the savings phase? With an assumed interest rate of 0.1%, you would have only saved 30% of Building Savings Contract 1 and 44% of Building Savings Contract 2 after 15 years. Are these then already allocated?!?!

Hi,
we also have this combination of a building savings contract and a bridging loan. The fixed interest rate over the entire term was also important to us, and it was cheaper for us than a pure annuity loan.

We also have a 50k-kfw-loan and we use Wohnriester. The tax savings are worth it for us, despite the Wohnförderkonto.

I also asked the advisor about the allocation because it seemed too uncertain to me. The interest rate lock of the bridging loan is fixed with us until allocation, and according to the advisor, the building society has so much money available that an allocation will always work for the next 15 years. Well, the second part, no idea if that’s true, but with the interest rate lock until allocation, I feel on the safe side.

Hope this helps, this financing combination is not very popular here in the forum. You just have to deal with it intensively BEFORE signing, especially with Wohnriester.

Do you consider the monthly installment of 1480 EUR (approx. 34% of the income) to be too high? With the additional costs you mentioned, we have calculated a bit 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 shopping and savings rates (200 EUR / month reserves for the house, 150 EUR reserves for other things and 100 EUR for vacation - every 2 years) we still have 850 EUR available together, or 425 EUR each - depending on how you want to look at it.

Roughly speaking, one usually says that 30% of net income is appropriate for financing. I don’t see it as that strict for you at the moment either.

If you feel that this is exactly the right financing for you, then go ahead and do it.

Make sure to get well informed about the points mentioned here again, so there won’t be any nasty surprises later!

Good luck