Repay savings or save? + Secure interest rate

On the subject of the home construction premium Aren't most users here who buy or build houses exceeding the limits for the home construction premium?

That's what I think too. At least those who build or buy a newly built house in a similar price range.

May be so, but there are still those who fall below the threshold. They shouldn’t be deprived of the information, right? We are also still far, far below it. Still, one can easily afford a (modest) house with such an income, although not necessarily a new build. It’s about 3000 net, which you have to have first. These are incomes that most people I know (including homeowners among them!) can only dream of. A full-time temporary worker takes home 1200 net, a beginner in an office job earns 1300 (each with tax class 1 and 40 hours per week), these are not extraordinary figures, that’s normal nowadays. Even with two full earners you don’t get over the threshold for the WoBauPrämie, and even less as a couple with one (good) earner – which still supposedly exists today ;)

we have now decided on a lender and fixed the interest rate for ten years. [...] to simultaneously conclude an independent home savings contract, which we can save according to our wishes. [...] of course we also want to make as many special repayments as possible annually, especially at the beginning of the loan term. But a certain amount must also be saved on the home savings plan.

How much should flow into the home savings contract? Why don’t you increase the annuity?

I would extend the fixed interest period, remove the possibility of special repayments (hopefully the interest rate will not change overall), increase the annuity. The money that you might put into special repayments, you can save flexibly. Or you end up spending it anyway, after all a house costs ...

We do not want to increase the annuity. We want a flexible savings option. The building savings contract is rather intended to secure the interest rate, in case it should be, for example, seven percent in ten years.

How useful is the building savings contract if you cannot afford its rate permanently (i.e., the allocation maturity may not be reached)? And if you can, you could put it into the repayment. It may also be sufficient if you are allowed to change the annuity twice (?) free of charge.

Very sensible. With a building savings contract, you are indeed somewhat more flexible than with a classic annuity loan. Here you can change the amount of the savings rate according to your needs (e.g. income reduction or loss due to parental leave, longer illness, unemployment). And if you pay less for a while, you can still get the building savings contract allocated at a later point through additional savings installments (--> end of the fixed interest period of the annuity loan).

That can go terribly wrong. Even if you have reached the minimum savings rate, that does not mean that the building savings contract is ready for allocation. For allocation, the evaluation number must have reached a certain size. By shifting the payments, it can happen that this evaluation number is not yet large enough. Then you have your money tied up in the building savings contract, but you cannot use it yet. One must understand this building savings construction.

We have taken out a 15-year loan, the annuity with 2% repayment set rather modestly, and if something is left over, it goes into special repayments. This way the rate is manageable so that it can also be paid during unemployment or occupational disability/incapacity to work. Through special repayments of up to 5% of the loan amount, we are just as flexible as you with the building savings contract, but we repay regularly instead of paying into a low-interest building savings contract. After 15 years, enough should be repaid so that an interest rate increase no longer hits as hard. We will probably even be able to repay 4-5% as a special payment in the first year. However, I admit that this model is not for everyone.