Blacksammy
2013-05-25 00:44:03
- #1
Hello everyone,
my girlfriend and I are about to buy a condominium. Today we visited a financial advisor at a building society who proposed two alternatives to us. We have equity of a little over €42,000 in cash, of which about €12,000 will be used for ancillary costs, so €30,000 equity is available for the purchase.
Net income: together €2,700
Furthermore, I have had a building savings contract since 2006, which I am currently paying into monthly with €250.00 plus a prepayment of €40.00. The balance is just under €15,000. Loan interest rate upon allocation is 3.8% and the credit balance interest rate is 1.5%. Building savings amount: €50,000, so I have to save 50% for it to become eligible for allocation. According to calculations, this would still take three years.
The advisor suggested for option 2 to cancel the building savings contract and include the saved capital of €15,000 as equity so that the loan amount is reduced. This will lower the installment and increase the repayment.
The building savings contract is with the same building society as the financing offers. If I continue to pay the building saver and later waive the loan in three years, I think it will still be retrospectively interest-bearing at about 3% over the 7 years.
The state subsidies remain after cancellation because the 7-year lock-in period has expired.
Which alternative would you choose or which one makes more sense?
Thank you very much!!
Financing
my girlfriend and I are about to buy a condominium. Today we visited a financial advisor at a building society who proposed two alternatives to us. We have equity of a little over €42,000 in cash, of which about €12,000 will be used for ancillary costs, so €30,000 equity is available for the purchase.
Net income: together €2,700
Furthermore, I have had a building savings contract since 2006, which I am currently paying into monthly with €250.00 plus a prepayment of €40.00. The balance is just under €15,000. Loan interest rate upon allocation is 3.8% and the credit balance interest rate is 1.5%. Building savings amount: €50,000, so I have to save 50% for it to become eligible for allocation. According to calculations, this would still take three years.
The advisor suggested for option 2 to cancel the building savings contract and include the saved capital of €15,000 as equity so that the loan amount is reduced. This will lower the installment and increase the repayment.
The building savings contract is with the same building society as the financing offers. If I continue to pay the building saver and later waive the loan in three years, I think it will still be retrospectively interest-bearing at about 3% over the 7 years.
The state subsidies remain after cancellation because the 7-year lock-in period has expired.
Which alternative would you choose or which one makes more sense?
Thank you very much!!
Financing
| Purchase price | € 112,000 | |||
| + | real estate transfer tax | 5 % | € 5,600 | |
| + | notary | 1.5 % | € 1,680 | ancillary costs |
| + | broker | 3.57 % | € 3,998.40 | € 11,278.40 |
| = | total | € 123,278.40 | ||
| Equity: €30,000 Ancillary costs are paid separately | ||||
| loan: | interest: | repayment: | cost per month | |
| €82,000 | 2.95 % | 3 % | €406 | |
| annual prepayment: | €4,100 | 10 years | fixed | |
| loan: | interest: | repayment: | cost per month | |
| Including termination | €68,000 | 2.8 % | 3 % | €324 |
| my building savings contract | €68,000 | 2.8 % | 4 % | €385 |
| €68,000 | 2.8 % | 5 % | €442 | |
| annual prepayment: | €3,400 | 10 years | fixed |