Request for support in comparing financing offers

  • Erstellt am 2019-06-24 18:50:07

Annanas86

2019-06-24 18:50:07
  • #1
Hello everyone,

my husband and I are about to finalize and have obtained initial offers through a bank advisor; we lack the expertise and necessary knowledge to assess whether we are on the right track.

Attached are the key data of the property:

-Property price: 600K€
-Loan amount: 400K€
-Equity: 212K€ including 12K€ for the notary

Important to us:
- We expect somewhat larger sums soon through inheritance etc. (amount and timing cannot be predicted exactly), which we can also use for repayment and thus hope to pay off the house promptly.

Offers from banks:

Option 1 - Annuity with interest rate protection building savings contract:
- 400K € annuity via Allianz, 2% repayment, interest rate 1.32%, 20 years fixed interest period, monthly rate: 1,326€
- 216K€ building savings contract via Alte Leipziger, interest rate 2.45%, 20 years fixed interest period, term 31 years, monthly rate: 220€ (special payments of any amount possible, building saver flexible, can be adjusted or suspended).

Total burden: 507,300€, total costs 107,300€

Option 2 - Full repayment annuity:
- 400K € annuity via Hannoversche, 2% repayment, interest rate 1.92%, 35 years fixed interest period and term, monthly rate: 1,306€
- 10% special repayment possible, repayment rate change possible

Total burden: 548,800€, total costs 148,800€.

At first glance, we find option 1 more attractive and have initially focused on it, so the bank advisor has renegotiated for this model and presented other banks; the listed conditions are basically the last ones we received.

With option 2, something could certainly still be done.

Questions for you too:

- Which options would you recommend from your point of view? I have now looked around online and apparently combinations with building savings contracts are not so attractive, as the payout date cannot be guaranteed.

- How do you assess the interest rates? Or is there another option that we have not considered at all?

- Are there questions that should definitely be asked to the bank advisor or points to pay special attention to?

Many thanks again for your assessment and your feedback in advance. I hope I have outlined everything important for now. As mentioned, we are quite inexperienced on this topic.

Best regards from Hamburg!
 

Johnny7

2019-06-24 19:59:12
  • #2
Are you allowed to make special repayments with Option 1? I come to a remaining debt of about €157,000 after 20 years! I would skip the building savings contract there. What is €157k in 20 years? (In 20 years that might still be a good mid-range car). You can cancel and re-contract at any time between year 10.5 and year 20. An inheritance is also coming up, so the protection with the building savings contract seems unnecessary to me. My tendency would clearly be Option 1 without the building savings contract. If possible, make special repayments whenever you can or when the inheritance comes, and from year 15 onwards watch the interest rates a bit to possibly cancel and re-contract.
 

Annanas86

2019-06-24 21:34:11
  • #3
Hello

thank you for your feedback!! I checked again and discovered an error in the data transfer, the monthly rate is €1,106.67. I will correct that above again. So we still assume a remaining debt of about €216K.

No special repayments have been negotiated for Option 1. Option 1 without a building savings contract would then be the second variant and here the interest rates are somewhat higher.

Did I understand correctly that you would rather recommend the variant without a building savings contract and with an interest rate lock of 20 years (instead of 35 years) for now?

Best regards
 

Johnny7

2019-06-25 07:24:04
  • #4
Yes, that's how I would do it and put the €220 from the home savings contract into the repayment. Furthermore, see if a special repayment option is possible. Why is the interest rate worse without the home savings contract? (That would be my question to the bank advisor). It is also a question of how high the inheritance will be? As I said: With €1326 you will still have €157k outstanding after 20 years without inheritance. If you subtract that, only a few peanuts are left.. The home savings contract probably costs a €2000 connection fee
 

Annanas86

2019-06-25 07:42:18
  • #5
Hello Johnny 7,

Thank you for your feedback, I will call the bank advisor today and make sure he addresses my questions.

So far, I have the feeling that the consultation is too brief, because we only received the calculations by email after the conversation, but so far he hasn't done or commented on anything advisory? (E.g. What pitfalls are behind the building savings contract etc. and what do you have to consider?) Is that normal?

Best regards
 

Tassimat

2019-06-25 09:04:14
  • #6

Have you thought about the real estate transfer tax?



What does "somewhat higher amount" and "in the near future" mean?
I ask because your financing does not match the hoped-for windfall. Why a full financing over 35 years if, for example, you receive the money in 10 years.
 

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