Replace KfW 151 with a building savings contract

Hello everyone,

we want to buy an old semi-detached house, the purchase price is €132,000. For this, we want to take out a "regular" annuity loan.

Bank XYZ: €90,000, 30 years full repayment, 2.67% -> approx. €387 installment
The rest, additional costs and some "renovations" will be covered by equity.

Additionally, we want to take out a KFW 151 loan also with €90,000 for the renovation.
There are several variants here; in all cases, the fixed interest period ends (at the latest) after 10 years, during which we could make approx. €15,000 special repayments.

With a term of 30 years (1 year repayment-free), this results in an installment of approx. €300 and approx. €45,000 outstanding debt (due to 5% repayment bonus and special repayments) after 10 years.
The outstanding debt will then be paid off over another 20 years with a new interest offer, whereby the interest rate will only be known shortly beforehand.

To "secure" the KfW repayment, we have considered the following option:
The KfW is not repaid and is due in full after 10 years, monthly interest payment: approx. €72
After deducting the repayment bonus and possible special repayments, approx. €70,000 outstanding debt remains.
To repay these €70,000, we would save about €34,000 with a (new) building savings contract at €288 and then repay for another 15 years at €280, with an interest rate between 2.68% - 2.74%.
The goal of the whole thing is a fully planned financing whose installment should not exceed €750.

- Are special repayments possible at all with the bullet KfW 151?
- Is it even possible to do it this way or does that make sense?

Thank you :)

Hello,

no matter which loan. If it is bullet repayment, you can do whatever you want with it. Refinance, repay, partially repay.

At this interest rate level, I tend to repay as much as possible. Thanks to the compound interest effect, it would make more sense to repay the KfW loan. Especially since you also have to pay 700-1400 depending on the promille for the building savings contract.

Hello, You are right, there would still be a €700 completion fee due for the [Bausparvertrag]. In option 1 (30 years / 1 year without partial payments), the [KfW] is not due after 10 years, but the fixed interest period expires. There will probably be a new interest offer from the [KfW] or the "intermediary" bank, probably following the "take it or leave it" principle. Since the [KfW] is secured in second charge, it is not so easy to refinance through another bank. (Please correct me if I am wrong!) A similar problem arises with option 2 (10 years / 10 years without partial payments), but here the remaining debt is covered by the [Bausparvertrag]. In both options, the monthly burden is almost the same; there is not much room for additional special repayments.

Well, there is no "take it or leave it" offer from KfW after 10 years. About 6 months before the end of the fixed interest period, there is a market-based offer. With a high loan-to-value ratio, the offer is usually better than alternative offers from banks. With a low loan-to-value ratio, it is often worthwhile to redeem the KfW loan through the bank that has been processing it so far. This usually works without additional costs. If you "change the bank" after 10 years, e.g. to an external BSK, the property will have to be assigned, which usually incurs costs (assignment + court). This cost is only waived with cooperating BSK/banks.

I would check whether the full repayment + KfW151 30/1/10 + saving in a home savings contract variant is feasible. As a result, the rate will probably be somewhat higher overall, but in my opinion, it is the best structure, unless you find a home savings contract with more than 1% interest on the balance.

Ok, that is good to know (regarding "Friss oder Stirb"), thank you very much :) I will take a look at the variant Volltilger+KfW151 30/1/10 + Besparung Bausparvertrag. Does anyone know if special repayments are possible with the KfW 151 10/10/10?

Yes, the KfW or your intermediary bank knows that.)