TA loan with repayment through building savings contract

Hello everyone,

I would appreciate feedback on the following financing proposal:

joint net income 4,000 euros
required loan 240,000 euros
construction project single-family house with basement and double garage 430,000 euros including land + additional costs
equity 200,000 euros
children planned for the future

TA loan
fixed nominal interest rate 0.45% annually
interest rate fixed for 10 years
disbursement rate 100%
effective annual interest rate for the entire term from disbursement of TA loan 1.09%

building savings account
building savings contract amount 240,000 euros
interest rate on building savings balance 0.10%
monthly regular savings 5% of the building savings contract amount = 1,200 euros
optional allocation 43%
nominal interest rate 2.15% annually
effective annual interest rate 2.44% from allocation

monthly total burden
2016-2026 900 euros savings contribution + 90 euros nominal interest rate instalment
2016-2036 1,228 euros interest/repayment

savings period 10 years + repayment period 10 years 2 months

building savings contract costs
contract fee 2,400 euros
annual fees 123 euros
nominal interest rates building savings contract 15,237.77 euros
- interest earned 521.37 euros
= 17,239.6 euros

TA loan costs
nominal interest rates 10,800 euros
additionally assumed securities 535 euros

total costs financing proposal: 28,574.60 euros

A term life insurance is still added on top, as we do not yet have any figures for that.

Do you think this combination is good? Have we overlooked any costs? We hope to be able to reduce the repayment rate, i.e., the interest, a bit. Does anyone have experience with a similar loan amount?

Best regards,
khaleesi

Conversely, what speaks against a regular loan for the equity ratio? Interest rates should be fairly low, making a pleasantly high initial repayment possible

Hello again,

our first preference was always an annuity loan.
That is why we also have an offer for a full repayment loan:
240,000 euros
nominal interest rate 1.58%
effective interest rate 1.65%
interest fixation 25 years
initial repayment 3.43%
installment 1002 euros
special repayment 9600 euros p.a.

here a risk life insurance would also be added: partner tariff monthly 22.12 euros

Interest costs full repayment loan: 51,931.50 euros so the TA loan/building savings contract variant would be cheaper or have we overlooked something?

Regards,
khaleesi

I just calculated it because I couldn't quite believe it either, but here a very good [Bausparkombi] is compared to a bad [Annuitätendarlehen].

If I make the installments comparable (990€ 1st-10th year, 1228€ from the 11th year), the [Annuitätendarlehen] (fixed interest rate for 20 years) would have to have an interest rate <1.05% to be better.

Congratulations on such financing.

But it is already "bitter" to get such a bad interest rate with an equity ratio of around 45%. Although that is probably really a hefty surcharge on the 20-year fixed interest period.

It says 25 years. I do not understand why the equity ratio is fixed for longer than 15 years.