Real estate financing through Schwäbisch Hall Fuchs Wohnbau

Good evening,
I have been following for a while and had my financing discussion at the bank a few days ago.
We are looking for an end/middle terraced house or a semi-detached house.

Briefly about us:

- Total purchase price €270,000
- Required loan amount €235,000
- Both in permanent employment
- Cash funds €35,000
- Children initially not considered in the financing
- Net income together €3,350

I hope this information is sufficient for a start to help me further. We received the following offer from the bank. I would like to know if this financing is really advisable.

Financing component 1:

KFW program 124 (loan amount €50,000)

Monthly burden is €212.63 with a 10-year fixed interest rate. Afterwards, the remaining debt of €38,687.55 must be renegotiated. This risk is acceptable to us since the remaining debt is relatively low and still manageable in 10 years, even with rising interest rates.

Financing component 2:

Schwäbisch Hall Fuchs Wohnbau (€188,000 deferred repayment loan)

The bank recommended the Fuchs Wohnbau tariff from Schwäbisch Hall to us. It makes a very good impression on me because we have a fixed rate of €866 over the entire term of 30.1 years. Is there still a catch that I might have overlooked?

Before I write too little, I will try to explain the financing calculation of Schwäbisch Hall.

Loan: €188,000
Duration of the deferred repayment loan 17.1 years
Fixed interest period 17 years
Effective annual interest rate 3.25%

After 17 years, the matured building savings contract will repay the remaining debt of €114,975.
This sum will then be paid off within 13.5 years at the same monthly rate.
Thus, we will be debt-free after 30 years.

I hope I have explained it somewhat understandably. Thank you very much for your help. Regards

Hello,

at the current interest rate level, I would also have a normal annuity loan with a fixed interest rate for at least 15 years calculated for me. KfW funds have identical conditions everywhere

Have we already had it calculated, unfortunately the interest rates were significantly higher. In addition, with a fixed interest rate period of 15 years, a minimum repayment of 3% must be made at our bank.

What is your general opinion about this Schwäbisch Hall model?

What are the interest conditions for the first 17 years and for the last 13 years?

What are the respective rates for the accumulation of the NS plus interest and later for interest and repayment?

You are aware that you pay interest on the FULL loan amount for the first 17 years and on the accumulation presumably a negligible credit interest?

Compare the offer with a normal annuity loan with a comparable term and fixed interest rate and look at the total costs.

For the first 17 years, an effective rate of 3.35%. For the 13 years, that is an effective 3.2%.

The first 17 years: nominal interest rate €509 savings contribution €358
For the remaining 13 years: interest and repayment contribution €866

Yes, we are aware of that, but if the total sum is correct, isn't that okay? Credit interest is only 0.25%
I just see the advantage of the interest rate lock for the entire term.