What do you think about this offer for financing?

Hi everyone,

we met for the first time with someone who professionally handles house financing.
He has put together the following offer for us, what do you think about it?


Total 188,000 € monthly 864.22 € over 25 years
Thanks to you

Hello lorits,

can you please also write what you had in mind regarding how it should look after the 10 years?

Is the building savings contract already in place and saved up?
Did you definitely want to include Riester?
The Riester loan runs shorter than 20 years in my opinion, the other two run longer than 30 years.
Are special repayments possible or planned?

I don’t think the interest conditions are bad, but after 10 years the fixed interest period ends for all 3 loans. No one can say how the interest rate will develop until then.
There are very divided opinions on the topic of Riester being included in the financing. It can become very expensive under certain circumstances if you might not want or be able to use your house yourself anymore.

Hi Musketier, after 10 years the interest rate is fixed at 2.7%. Including Wohnriester in the financing was an idea, are there perhaps other or safer alternatives? It would be a full repayment over a 25-year term. Thank you

Hi Musketier,
after 10 years the interest rate is fixed at 2.7%.

How do you hedge that?
Hopefully not via an additional home savings contract?

Including Wohnriester in the financing was an idea, are there perhaps other or safer alternatives?

We will decide against Wohnriester and use a regular annuity loan. That will surely be a bit more expensive primarily, but safer in case we have to move out. Moving out can be caused, for example, by a change of location due to a job, by need for care, but also by separation. We prefer to additionally take out a Riester contract as a pension provision.
The advantage of Wohnriester is of course a state-subsidized repayment of your loan. Especially with several children, that can be very lucrative.
The pros and cons of Wohnriester must be weighed individually. Maybe you should read up on it a bit more.

It would be a full repayment over a term of 25 years.

In principle, the rate should allow that with the current interest rates, but the loans have different repayment rates. Thus, there will be terms above and terms below 25 years. Or do you want to consolidate the 3 loans after 10 years?

Total €188,000 monthly €864.22 over 25 years

I don't understand, in all three types of loans it says fixed interest rate for 10 years. No one can say if you will still be paying €864.22 in the 11th year. The contracts may last that long, but the interest rates (as stated in the table) definitely do not.

At least 15, preferably 20 years fixed interest rate should be included.

It may be that in 10 years the interest rates will be as good as they are today, but if not, you suddenly have 3 out of 3 creditors on your back, all wanting X,xx% more interest. What then? Especially the KfW program 124 (if I interpret it correctly) is quite inflexible.
I also think it is risky to take so much money from Riester just because today the interest rates (compared to the other two loans) might be the cheapest. I would get more (the largest part) from the bank, secure a long fixed interest rate, and be willing to pay 0,x% more interest.

The question is, would a monthly burden of €1,000 already be possible today or is the nearly €900 already the entire monthly financing budget?