Once again, opinion on the financing offer requested.

For fun, I increased the installment of the Allianz offer by saving the difference in the installment of €47.58 as a special repayment every 2 years (consistently saving away).

This results in the following for the total term:

At 4.00% interest between the 15th and 20th year, the Sparda contract is better
At 4.50% interest between the 15th and 20th year, the contracts are equal
At 5.00% interest between the 15th and 20th year, the Allianz contract is better

After the 20th year, both contracts have to contend with the same interest rates.

How likely are additional Sondertilgungen? They would make the Sparda offer even more attractive. We faced a similar decision in 2012/2013 – 15 or 20 years – and chose 15 years because, in case of unemployment and due to parental leave, we opted for a low repayment rate (2%) and planned to cover the rest with Sondertilgungen. Now, after the first 3 years since moving in, we have already repaid so much through Sondertilgungen that 10 years would probably have made more sense. However, this varies from person to person. Those who cannot bear to have money just sitting in their own account and tend to spend it before they can take advantage of the option for Sondertilgungen will not make such repayments. I personally also do not believe that the interest rate will rise exorbitantly.

Prepayments of €8,650 every year as included in the price with Sparda are unrealistic for us. Perhaps there is one year where you would prepay more (windfall, not predictable) but not permanently.

Regarding the prepayment I mentioned for the Allianz contract to "increase" the rate, we would handle it like any other reserve (car depreciation, repairs, annual bills). At the beginning of the month, we would transfer these €47 to a separate account, use the money for nothing else, and when the minimum amount for prepayment (€1,000) is reached, we would make this prepayment. For me, it doesn't really feel like a prepayment but rather like a rate increased through discipline.

€47 * 12 months equals €564 accumulated per year. With the Allianz contract having a 2% prepayment option, we would still have €2,896 possible prepayment per year left. That should be enough for us to reduce the remaining debt a bit, and that’s what it’s about. If there is extra money, then you can put it in. When the prepayment option is used up, you simply pay the next year.

We have no ambitions to be finished through prepayments within the fixed interest period. That is unrealistic for us, besides maintaining a comfortable lifestyle.

Especially the time with the children should be enjoyed, and leisure time simply requires money.

I only stumbled over this sentence.

Whereas the difference of €47 is not exactly huge when you consider that in my calculation not the average salary but the lowest salary (after all €200 below the annual average) was included in the household calculation and my wife certainly will not be unemployed permanently if the job does not continue after the fixed term.

This led me to conclude that with a €200 higher annual average and a planned special repayment of €47, an additional €150 of "free capacity" would be possible. That would be €1800 per year.

Originally, we also did not think we could pay off so much extra. Then my wife changed jobs with a salary jump and I also have quite a bit more net income compared to the signing of the loan contract. Since living costs have only risen slightly for us and the loan installment remains constant, there was more left for special repayments. However, I also included provisions for vacations, car replacement, repairs and the house in our expenses. If none of this is planned yet, then I would not count on special repayments (or only on the €47).

We have no ambitions to finish within the fixed interest period through special repayments.

At 4.50 % interest between the 15th and 20th year, the contracts are on par.

You don’t have to finish within the fixed interest period, but the smaller the remaining debt at the end of the fixed interest period, the higher the break-even point for the follow-up interest rate. That means here and there a €1000 special repayment during the first 15 years, and the follow-up interest rate at which both loans are equal might rise from 4.5% to maybe 4.7% or 5%.

we financed 1 year ago and just like you had 2 offers

- an offer from Allianz through Interhyp
- local Sparkasse

Interhyp sometimes just goes way too far with the requirements and stories (for example, they wanted proof of where my equity comes from, I wrote to them that it’s none of their business or with you that other properties are registered with some kind of land charge etc...). you must not forget that Interhyp only acts as an intermediary and the banks basically work independently. with Allianz we also read in the terms that their payout is linked to numerous conditions and it immediately looked like trouble. since everything is done over the internet, there is no local person to talk to about this and that.

with the Sparkasse it was exactly the opposite. a statement from the overnight money account was enough and the equity was clear. it wasn’t quite enough for 80% loan-to-value, but 80% was accepted anyway (better interest rate). the whole paperwork was much simpler. the bank only wanted invoices from the construction company, we could freely spend €70,000 for the house (which might also have advantages...). for us it was basically the same as for you. same equity share, same loan share. however, we only got €50,000 through KfW, but a main loan of €220,000 at 1.92% effective over 20 years.
we then decided without any doubts for the Sparkasse and did not regret it. Interhyp only looks somehow cheaper at first glance, but in the end is not really more attractive.

reasonable prepayments are also possible with us. whether that will ever really happen remains to be seen. however, we want to make prepayments in such a way that after 20 years there will be a manageable remaining amount. but first "the kids have to come"