Question about Riester and home savings contracts

Hello everyone,
over the weekend my wife and I made the decision to deal intensively with the topic of building a house. While browsing the internet, we quickly came across this helpful and very interesting forum.

The following questions have come up regarding financing:
1. Riester
I currently have a Riester contract and pay €150 monthly.
If I understand correctly, I can withdraw all amounts paid so far and use them as equity. Is that correct?
Is it possible for me to use the monthly €150 payment not for a pension but initially for repaying the building loan?

2. Building savings contract
I have a building savings contract where I receive €75,000 as soon as I have deposited €30,000. Do these €75,000 then count as equity if I manage to save the €30,000?

These are my current questions for now.

Thanks in advance.

Hello MilanLee,

the 75000 then of course count as equity...

Hello MilanLee,

the 75,000 then of course count as equity...

Hello!

That must be a joke, right?:)

Consistently, one would then have to put the 75,000 euros into another building savings contract and already have 187,500 euros in equity - and after the 3rd contract, it’s 468,750 euros and the house is already paid off!:D

Regards,
Tom.

Currently I have a Riester contract and pay €150 monthly. If I understand correctly, I can withdraw all the contributions made so far and use them as equity. Is that correct? Is it possible to use the monthly rate of €150 for repaying the construction loan instead of for a pension at first?

The vague wording "withdraw all contributions made so far" is a bit imprecise. A Wohnriester building savings contract is not an account from which you can freely deposit and withdraw at will. Nevertheless, your balance in the Wohnriester counts as equity. Either a) reduce the contract so that it is assigned SHORT-term, or b) cancel it, then your employer subsidy is gone, or c) suspend contributions and take a Riester loan (classic annuity loan with subsidy). Not many banks offer this because the subsidy means it is paid off faster :-) (Wüstenrot offers something like this) d.) also possible is a combination of a bridging loan with a Wohnriester building savings contract held as collateral. I personally would combine b.) and c.), requesting the transfer of your allowances into the Riester loan.

2. Building saver I have a building saver where I receive €75,000 once I have deposited €30,000. Do the €75,000 count as equity if I manage to collect the €30,000?

TomTom said it correctly: NO, only your balance counts as equity, of course. Your building savings loan, if it is a favorable rate, you can and should use as an interest rate hedging instrument at the end of the fixed interest period.

Questions? Gladly, whether open or as a PM, whatever you prefer.