Riester home savings financing - where is the catch?

Hello everyone,

I was offered a Riester home savings financing yesterday. Under 2.9% effective annual interest rate with a term of 20 years. Additionally, there is an annual tax refund of over €1000.
Otherwise, normal conditions. Special repayment, 1 year free of commitment interest, etc.
I wonder where the catch is, since with normal annuity loans you don’t get below 3.2% effective over 20 years.

Best regards
Tobi

Hello

Normally, I am not a fan of doing the job of a fun bank or cooperative bank... The person should have told you that.

There are disadvantages if you sell, rent out, or inherit the property. Similarly, a kind of shadow account is created where you have to retroactively pay taxes on the tax advantages now in old age. How it works or what you can expect a good financier should be able to explain.

We decided against it because the amount was too high in old age and we chose long-term financing at the current interest rate level. We still contribute to the Riester pension in parallel for retirement. But we had also concluded that years ago.

In short.. what you save now on taxes and receive from the state in subsidies over the years, you have to pay taxes on again upon retirement at a percentage rate and percentage factor not yet known today.

I never claimed that "normal" Riester was any different..^^

And yes.. with all Riester plans they always just say: "You save here.. and get there..." but what you have to pay back in the end, nobody tells you (because no one knows, not even the person who offers it to you!!)

I never claimed that "normal" Riester was any different..^^

And yes.. with all Riester contracts, they always just say: "You save here.. and get there..." but no one tells you what you have to pay back in the end (because no one knows, not even the person offering it!!)

but even there I have to say if you claim subsidies now, the tax effect is higher than the tax payment later :) (half-income procedure, lower taxable income etc) :-)


but we don’t need to confuse the questioner. He should get a counteroffer calculated and ask if he is willing to accept such disadvantages and be ready at 65/67 to finally pay off his house

Hello Tobi,

I agree with HilfeHilfe and Milambar.
One should be aware of the disadvantages.
However, the taxation in retirement is not 100% comparable to the statutory pension!
But how is your financing supposed to look, as I wonder why below 3.2% is not possible.


Best regards
André