Offer from an insurer

Hello,

we had a conversation yesterday evening with a financial advisor from a large German insurance company regarding the financing of our own home. We were actually in talks with the insurance about [Bauherrenhaftpflicht] and he then warmly recommended his colleague to us, who was able to get an appointment for us very quickly.

Specifically, it is about a total loan requirement of €330,000.

At first, everything sounded great, financing over 35 years (which seems very long to us) we always thought 30 years was the maximum. We are both 30 years old.

When we looked at the offer more closely later, we first saw a fee of €3,500, which apparently are closing costs for the included building society savings contracts.

Also included is a KFW component 153, which we will not repay immediately but which is covered by a building society saver of the insurance and will only be redeemed after 10 years. At least, that is how it appears in the financing plan to my layman's eyes.

He did not want to include a Riester component; he thought nothing of it. (We have 3 children - isn’t it sensible to include the Riester or better to save in a "normal" Riester?) it amounts to €1,200 per year for all.

In addition, we repeatedly pointed out that we still have €40,000 in equity in various building society savings contracts, partly also Riester with another company, which we would like to use. The gentleman did not comment much on that, avoided it and calculated the loan amount as €350,000 instead of the €330,000 we wanted without pointing that out. He always emphasized that we have absolute interest rate security upwards through the building society savers (max. 3.5%) and that this NEVER exists with banks.

We have not yet received an offer from the bank, we have already had a conversation there, so it will come in the next few days. However, our bank advisor also said that they currently remain below 3% interest for 30 years.

Basically, I would be interested in your opinion on offers from insurers. We had not been aware until now that they lend such large amounts. Is this done often? The closing costs seem very high to us; is that also usual for bank loans?

Thank you all

You actually don't need to have closing costs. Get offered a regular annuity loan. Then you can compare the [Bausparer-Konstrukte] again. Be careful with the stated interest rate ... you probably have to calculate it yourself (with the [Bausparkombination]).

The consumer advice centers also provide good information about the suitability and appropriateness of a proposed financing. Personally, I don't think much of all this combination stuff, all with different conditions, etc. Hardly anyone can remember it over the years, and few unforeseen developments are very likely to break one of these components.

If there is already rebellion in your gut, it may be due to the unconsciously absorbed feeling that someone here is trying to sell you something that doesn't fit you. He knows it and tries not to show it. However, you subconsciously notice this, and that's why this uneasy feeling creeps over you. ;)

Thank you for your assessments.

It confirms my feeling.

The thing sounds... somehow creepy. I don't want to add anything more to that. Otherwise, the post will be too long and won't leave much good about the offer. Actually, nothing at all, except maybe KFW.

Kfw is offered by every bank. I also find it creepy, including the tip to go to consumer protection.

I would also consult a big broker (Interhyp Dr. Klein) and have a completely normal boring annuity loan including Kfw offered. Be careful with the years. Fixed interest rate period is the magic word. Often, fixed interest rate period is confused with the total term.

You are talking about building savings contracts. Are these allocated? Or under what conditions were they concluded? If they are older, it might be less interesting to use them as a loan. But a professional would have to look at that.