Question about construction financing offer

Hi,

I have a question about a construction financing offer for the purchase of land and house construction.

Total costs: 350K

100K equity

255K bank loan: 15 years fixed interest, 3.26%

144K building savings contract: 15 years savings period, 2.75%

50K KFW (program 153), 2.5%

The building savings contract starts at the end of the fixed interest period of the bank loan. What do you think about this financing option? How about the Kfw program 124? Should that be considered as well?

Thanks and best regards Herbert

124 must in my opinion only be taken into account if you actually have too little money to build a house anyway ;) The limits for the maximum income are set relatively low if I remember correctly..

How is the building society savings plan supposed to work? Is the bank loan meant to be repaid in such a way that after 15 years there are still 144k outstanding, which are then redeemed by the building society savings plan? What does the monthly installment look like?

How is the building savings plan supposed to work? Is the bank loan supposed to be paid off in such a way that after 15 years 144k are still outstanding, which are then paid off by the building savings plan?

Yes, that is exactly the idea.

What does the monthly installment look like?

The savings rate for the building savings plan would be 230€ per month. Repayment after 15 years 850€ per month.

Is the construction with the building savings plan worthwhile?