Outstanding Debt Protection in 15 Years

Loan amount: 287,500 Euro
Repayment: 2.0 percent
Outstanding debt in 2030: approx. 205,000 €

What is so wrong with a financing

Just a quiet suspicion. After 15 years still an outstanding debt of 205,000€. From my experience here in the forum, you currently calculate interest + repayment at around 5%. (even if you already say more is not possible)

I really don't know what you want. He got 0.75% for 10 years and could theoretically terminate his loan after 10 years. At 0.75%, it doesn't matter whether he repays today or saves his money, which is intended as repayment, on the side and deducts it once at the end from the total amount. You could even invest the 0.75% yourself at a slightly better interest rate and still make a profit.

I had only pointed out that with consistent saving, securing the then very low remaining debt of under 115 k€ is not necessary - especially not through a [Bausparvertrag].

I agree with you. If you have close to 100k saved up by the end of the loan, you can pay back part of the bank with your money and take out the remaining balance again. A remaining 100,000€ is then no problem anymore, even if it were to get 1-2% more expensive again (which is very unlikely to happen). A home savings plan simply doesn't make sense for something like this today. Securing the interest for later is nonsense, or only for people who really want to be absolutely zero risk-conscious. You also have to consider that in 15 years you will earn more money, while the remaining balance stays the same (it does not increase due to inflation or salary increases).

Hello,

the problem is what many people are seeing now: the very high remaining debt combined with the low repayment. Of course, it is clear that the L-Bank offers a great interest rate for the first 10 years but only allows 2% repayment (without special repayment rights). They also want cash flow security and to make money. You still have the option according to the Building Code to terminate the whole thing after 10.5 years, provided the interest rate is below 2% and attractive for you. But we don’t know any of that.

You should really choose an investment form that you don’t touch. Of course, you get more than 0.1% for daily/fixed deposits, but it is human nature to reduce or cut the 500 € savings or spend the saved money recklessly. 500 * 36 months = 18,000 € so then let’s get ourselves a better Audi.

That’s why I always say, 15 years + special repayments and a high repayment rate. Anyone who struggles with 1-2% financing is, in my opinion, negligent.

So I have to say we have this at L-Bank as well. It was only a 215k loan and after 15 years it's still 177k. Until then I can pay off the family loan over 100k and another 34k at the bank.

The low repayment thus only helps. Especially since my wife is on parental leave and I am the sole earner. As soon as my wife works again in 5-10 years, one can take care of the remaining 177k debt. The L-Bank simply requires consistent saving aside or the knowledge of enough income in 15 years....