Low repayment combined with regular special repayment

But at a much lower rate, Musketeer, so don’t badmouth it... at the same rate you would now have 5% repayment and would be finished much sooner...

Foxxi wants 1% and not 5%.

Hello dear forum community,

We are currently planning to take out a loan for the construction of a house and are already in talks with Interhyp. Additionally, we will obtain offers from a few more banks before we commit.

I am naturally more security-conscious and am considering the option of keeping the fixed monthly burden manageable by a low repayment rate - say €1000 at 1% repayment instead of €1400 at 2% repayment with a free annual right to a €20,000 special repayment. To not neglect the repayment nonetheless, I would transfer the €400 I save every month to a separate account and at the end of the year use the saved €4800 as a special repayment (+ x€, which I can additionally contribute because I was able to save more).

What do you think of this repayment strategy? To me, it looks like security through low liabilities, with the same repayment performance. And from the special repayment amount there would still be €15,200/year left for extraordinary special repayments - I rarely expect such a windfall that this amount wouldn’t suffice.

Thanks already for your assessments!