Survey: Which of you finances with TA loans?

Good morning,

Yes, for me the only logical thing now is to secure the favorable conditions for the term through the building savings contracts. Whether the building savings contract is then integrated as a component into the construction financing in two years remains open at the moment. Current effective loan interest rates are at 1.8% and, of course, you always pay interest on the entire building savings amount over the term, and therefore it has to be compared to an annuity loan. But for now, I am securing the good interest rate. Possibly it will be 3-4% in 2-3 years; you never know.

What I also learned is about a building savings contract Riester residential pension. I am not a Riester fan because of taxation in retirement and the residential promotion account. However, I was now explained that I could, for example, conclude this building savings contract Riester residential pension to secure even better loan interest conditions of 1.4%. If I do not accept the state subsidy, there is no need to pay taxes retroactively, etc. It is just a building savings contract that can be subsidized, but you don’t have to do it. This way you could secure even better interest rates for later.

I have a similar offer and have a question about it because it is not entirely clear to me!

TA loan with repayment of building savings contract
Amount €150,000
Monthly rate €588.00
Effective interest rate % p.a. 1.50
Term 28/4
Interest years 1-15 1.50%
Interest years 15-rest 2.85%
It should be noted that if the interest rate after the first 15 years is lower than 2.85%, it could be refinanced.

If I understand this calculation correctly, I have interest rate security for the entire 28 years and 4 months. Not like with a normal loan often only 10 or 15 years.

Is there a catch with this system? Has anyone had experience with such a financing or can give tips? I would be grateful for any answer!

Have you compared the financing costs of such a loan with an annuity loan?

Yes, I have, and with an annuity loan, I have an interest rate of 2.1% for the first 10 years, and in the following years, a new interest rate must be negotiated. If the interest rate remains low, I would more or less break even with it. Of course, if the interest rate changes, the option would become more expensive. Note that the average interest rate in Germany is about 5.5%. We are currently well below that. Naturally, it could be back there in 10 years. That is a certain risk. With the TA loan, I pay a maximum interest rate of 2.8% after 15 years. Has anyone had experience with this?

Unless you want to make special repayments, the TA loan-building savings construct actually seems slightly cheaper. However, I find the interest rate for the annuity loan far too high. In recent months, all offers here in the forum have started with a 1. At 100% financing, Dr. Klein shows an interest rate of 1.72%.

I agree with my predecessor. In addition, banks also grant fixed interest periods of 20 or 25 years. What would the best annuity loan offered to you look like? Incidentally, the fixed interest period of more than 10 years only applies to the bank. After this period, if the interest rates are still more favorable than at the time of conclusion, you can terminate without any problems. Prepayment penalties are then not due. Basically, I recommend multiple offers and comparing the financing costs.