Purchase of a single-family house - Financing

2017-02-03 14:56:50

We obtained an offer from Sparkasse (which was immediately discarded) and also went to Interhyp. The interest rate is indeed very interesting for us at BHW (brokered by Interhyp), but many other banks unfortunately dropped out due to the lack of equity contribution. Additionally, we can only get the loan at BHW if we also finance at least €15,000 through KFW Energetic Renovation. Although we are having the roof renewed, it is by a colleague and not invoiced. We still wanted to have that calculated to see if it still makes sense. However, my husband is skeptical about such brokerage through Interhyp, as he wants a local contact person and does not want to settle everything by phone when problems arise... We don’t have that much equity, only a little for emergencies. We are currently spending all our money on travel. Theoretically, we could save about €1,500 per month at the moment, but the money always goes directly into vacations. And we are aware that with children there is less income and higher expenses. :-)

2017-02-04 08:19:06

You are already aware that a property also means responsibility ;) in your specific case, I would not look at the interest rate xxxx after the decimal point but at the partner. Renovation over 70k through many acquaintances, possibly also without an invoice, could also lead to problems with the payout

2017-02-04 10:18:55

My husband is, however, skeptical about such brokerage through Interhyp, because he wants a local contact person and does not want to clarify everything only by phone when there are problems...

I can understand that. We would have preferred a local contact person as well. But in our case it looked like this: interest rate through a bank via broker Dr. Klein = 1.99% over 20 years. Interest rate through a local bank = 2.25% over 20 years. At the amount of our financing, this would have meant a difference in interest payments of about €12,000 over the fixed interest period of 20 years! And then we thought: Is the local contact person (who is mainly relevant during the comparatively short payout phase in relation to the total term) really worth €12,000 more to us?! We then decided that it is not worth it for us. We prefer to save the €12,000 (about €50 per month) and just don’t have a local contact person. So be it. That will also work out.

So consider how much difference it makes for you and whether it’s worth it to you. If yes, then stick with the local bank :). One should just know that you may actually pay for this service. But if that is no problem for you, then that’s good. A local contact person is indeed more pleasant if problems should arise.

2017-02-04 11:04:01

I see it exactly the same way. The Volksbank will also contractually assure not to securitize and resell the loan. So it always remains the creditor. Volksbanken also very often have very fair terms and conditions. Ours, for example, gives us a loan for 12 months without a commitment fee. Upon a phone call or email in the protected area, it always only pays out the amount actually needed. And that on the day of the order, so that you can possibly take a discount. So: pay out 17,433,- is the order, then the 17,433 are on the current account the next day. And: although it is a special case, our Volksbank accepted as collateral for one half of the loan a soon-to-mature life insurance policy at the same interest rate as the mortgage loan. For the life insurance portion, it does not go into the land register, as the insurance policy itself suffices as collateral. That also saves costs. - And: the rest is a feeling. We know them, they know us.

2017-02-05 00:04:24

I see absolutely no reason to trust Volksbank with these two offers. Bad, ill-conceived offers, sorry. Can someone please tell me why the local bank should appear as a sensible partner for mortgage loans? Especially since the offers are usually worse?

2017-02-05 20:14:28

I can understand that. We would have preferred a local contact person as well. But for us it looked like this: interest rate through a bank via intermediary Dr. Klein = 1.99% for 20 years. Interest rate through a local bank = 2.25% for 20 years. With our financing amount, this would have made a difference of about €12,000 in interest payments over the fixed interest period of 20 years! And then we thought about it: Is a local contact person (who is mainly relevant during the payout phase, which is short compared to the total term) really worth €12,000 more to us?! We then decided that it is not worth it to us. We preferred to save the €12,000 (about €50 per month) and just not have a local contact person. So be it. That will work out as well.

So consider how much difference it makes for you and whether it is worth it to you. If yes, then stick with the local bank :). You should just know that you might actually pay for this service. But if that is not a problem for you, then that's good. A local contact person is indeed more pleasant if problems should arise.

Would you reveal the amount for which you agreed on the 1.99% fixed for 20 years? I would be interested, since we also received an offer for 20 years fixed at 2.15% for €303k.

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Purchase of a single-family house - Financing

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