What financing options are available for new construction?

I also think that it is necessary here to fire up Excel and compare the total costs of the loans/[Bausparvertrag].

What is generally meant by saying that the [Bausparvertrag] is not worthwhile is that a closing fee is due for the [Bausparvertrag], which is often not included in the calculation... Additionally, it is already the case that with the [Bausparvertrag] you save money over 10 years with 0–0.25% interest, while on the other hand you pay significantly higher interest for an ongoing loan. This "gap" is of course not charged by any bank and has a clearly negative effect. With our current low interest rates, it can quickly happen that the financing is more expensive overall because of this. The costs are not obvious but occur "hidden." Anyone who therefore plans a [Bausparvertrag] in their financing should know Excel well and set up a calculation of what the house ultimately costs them in the end.

I also often view critically that such financing often includes a loan over 10 years and a [Bausparvertrag] with a term of about 10 years. Roughly looking at the numbers, you are still not debt-free after 20 years, are you??

For our financing, we went to an independent advisor and have an offer with a 30-year fixed interest rate at 2.25%. Other variants (also with [Bausparvertrag], etc.) are currently being calculated and hopefully will be offered to us in the coming days. I will then also calculate this and can gladly post the interest data etc. here...

Then one should also know: "The estimated allocation date at the time of concluding the building savings contract is not guaranteed." (Wikipedia) And if you see what problems building societies have today with the high savings interest rates promised back then, you can imagine what will happen if the interest rate level is unexpectedly high and the building society customers all want to be allocated their favorable loans. The suggested security is not guaranteed.

Our construction project looks almost identical. €316,000 loan and we are doing it through an annuity loan. No 2-3 companies to deal with afterwards. No 2-3 different fixed interest rate terms. One loan, one contact person, one interest rate, one fixed interest rate term.

The interest rate for us is 1.95% for 15 years and thus just over €1000 in installments.

Thank you very much for your numerous answers and tips

We had an appointment with an independent advisor on Friday. He rather advised us to take out a loan with a fixed interest rate for 15 or 20 years (like most people here in the forum).

Another possibility would still be to conclude a building savings contract in addition, in order to have interest rate protection for the remaining debt of the KFW loan after 10 years. The building savings contract could be saved voluntarily on the side.

A few more questions:
What experiences have been made with Hypovereinsbank?
What do you think of the KfW Home Ownership Program loan (124)?
Which links are recommended for calculating loan costs?

Thank you for your help

If the building savings contract is to be eligible for allocation in 10 years, saving is not "voluntary" but mandatory. I would not conclude a building savings contract. If interest rate security (in 10 years) is important to you, then forget KfW and conclude a contract for 15 or 20 years. Otherwise, you simply risk the KfW follow-up conditions. The KfW also has, AFAIK, different models; you can also repay more, then you will have correspondingly less remaining debt in 10 years. Maybe you can save that freely.

Links are forbidden, but I find the site Zinsen-berechnen.de helpful. It also does no harm to recalculate an annuity loan once in "Excel".

Why no annuity loan without KfW?

The KfW conditions currently look as follows (product 124):

50,000€
1.51% interest
Repayment usually around 2.2%
Fixed interest rate period 10 years
Term 35 years

Then take a look at what a bank currently charges for a construction financing loan of 50,000€ with a fixed interest rate period of 10 years. You will see that banks demand around 1.5% or less, exactly what KfW charges. So why bring a second bank on board and complicate everything?

Most do this to get a better rate (the mixed rate).

We decided on a pure annuity loan with a fixed interest rate period of 15 years.

Then you don’t have to worry after 10 years about how to refinance the almost 40,000€ from KfW. KfW will come to you and offer a really bad interest rate and other banks don’t want to be in second position in the land register, or they charge an even worse interest rate for it.

We now pay an interest rate of 1.95% for 15 years and thus a rate of just under 1,040€.

In your first calculation, I don’t even understand how a building savings contract with over 55,000€ should cover the residual debt of the main loan and the KfW loan. In the building savings offers made to us, there was a loan over the amount of 300,000 at Bank X and a building savings contract over the same amount. Nothing was repaid on the main loan and after 15 years the loan was redeemed by BHW (up to then 80,000€ had been saved in the building savings contract) and the remaining 220,000€.

You also don’t say how high the repayment is. If I assume 1%, then about 223,000€ is still outstanding from the 250,000€ and about 40,000€ from the KfW. Then 263,000€ is supposed to be covered by a 55,000€ building savings contract? How is that supposed to work? Is the KfW loan repaid or the main loan or both? A lot of information is missing there.

It would actually only make sense if the KfW is not repaid, because the KfW loan size almost matches the building savings contract. But then the 223,000€ would still have to be refinanced after 10 years, where there is no interest rate security.