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What use is a 30-year fixed interest period to you if you would already be finished with the annuity loan in 20 years with a comparable offer to your [BSK]. Even if you still have 50K left after 20 years, the interest rates can rise to 6-7%.

By the way, the question about the offer is pure nonsense if you don’t post any conditions.

We also financed with a building savings contract and are not happy with it, as after the fixed interest period expires, we only have no guaranteed interest on a maximum of €50,000. Nevertheless, the others are right that you are being given unequal offers. You should calculate with 20 years of fixed interest and comparable installments. Only then will you get a real comparison. Then you will probably be paid off after 22-23 years and will have paid less overall, with a slightly higher risk, because after 20 years there should not be more than €50-60,000 left. Also, are you aware that from the 11th year you have to pay €400 more monthly?

30 years exaggerated? I don't think so. Who knows what tomorrow will bring? Will the Euro still exist in 20 years? Might interest rates not be extremely high again at 6-7% ??

Nobody knows, so we'd better be safe

Then calculate how it looks if you continue financing at 6-7% after 20 years. And then you can calculate from which interest rate the building savings contract first pays off (assuming that you also adjust the rate accordingly from the 11th year onward).

30 years exaggerated? I don't think so. Who knows what tomorrow will bring? Will the euro still exist in 20 years? Won't interest rates perhaps be extremely high again at 6-7%??

Exactly, and we simply replace GB with Turkey, practically as a creditor/debtor switch within the EU. That way, you also avoid the exit.

Extremely high at 6-7%? Should I rummage through old files and look up mortgage rates at 12 or 14%?

You can also just keep calculating everything to suit yourself.

Extremely high at 6-7%? Should I rummage through old files and find housing loans with 12 or 14%? You can also just conveniently calculate anything to suit yourself.

It is always the question of how high the security should/must be. 6-7% are really utopian numbers at the moment. But my parents also financed with 11% not too long ago. So I am with you on that. In the next 10 years I definitely don't see that, but anything beyond that is just guesswork.

Still, one has to ask the question from when it makes sense to rely on the building savings contract. The building savings contract also does not yet state how high the loan interest rate is (i.e. from allocation). If I calculate the installment of €1300 over 11 years, that would be an effective interest rate of 3.5% and that would already be very high for a current building savings contract.

By the way, the total interest of €55,000 is not correct, since you have neither considered the last 10 years of KFW nor the interest for the building savings contract:
- The KFW (if calculated over 30 years with a constant interest rate of 1.5%) costs €25,000
- The interest on the annuity loan at 1.43% costs €36,500 for the first 11 years
- Added to that is the interest for the building savings contract from the 11th year on. I am setting this rather low at 1.8%, then that is €17,000 for 11 years remaining term. If I take the theoretical 3.5% from your framework data, it would be €29,500
That makes a total of: €78,500 (building savings contract 1.8%) or €91,000 (building savings contract 3.5%).
If I now look at a standard annuity loan, then at 2% interest and 22 years term, €54,000 interest would accumulate. Whether you can negotiate a better interest rate than 2% with a 20-year fixed interest period I do not know. Regarding security, I would not worry, because with €25,000 remaining debt after 20 years, even 12% interest does not ruin the financing. The installment would be consistently at €1080 (plus KFW). So you pay slightly less overall, but that is also logical, since in your model you postpone repayment and therefore have to pay more interest.

The advantage of the annuity loan is usually that it is more flexible. If you really can pay less at times, you simply adjust the repayment rate. In the end, the remaining debt is indeed a bit higher, but so what. With a building savings contract, you really can’t reduce the savings rate, because otherwise the interest rate lock until allocation is not sufficient. For you, that would mean having to bridge finance after 11 years until the allocation takes place. Even for one year that gets really expensive, because you would have to pay the potentially higher interest on the full €232,000 (no cent has been repaid yet). With the annuity loan, it is "only" the remaining sum of maybe 20%. During the loan phase, you must not pay less than a minimum amount (I assume that is the €1300 in your case). If your salaries maybe develop differently in 11 years, a jump of €400 can already hurt.

But it is important that you really compare the same numbers, i.e.:
- same monthly rate
- same term

It is always a question of how high the security should/must be. 6-7% are really utopian numbers at the moment. However, my parents financed at 11% not too long ago. So I am with you there. I certainly don’t see that in the next 10 years, but everything after that is just guesswork.

That would have to be about 35 years ago. I no longer count that as "not too long ago."