With or without a building savings contract (interesting model)

Hello everyone! I have been reading for a long time and occasionally write something as well.
We have finally managed to find our house. It is from the 60s but in great condition. The builders (an elderly couple) have lived in the house until today and have taken care of it, but of course there is still a lot to do. The cost breakdown is as follows and unfortunately makes us more complicated customers for banks (keyword: determination of the mortgage lending value):

Purchase price 208,000
Additional costs including broker, notary, land registry...: around 27,000
Modernization, renovation, and refurbishment: approx. 100,000
Total costs therefore approx. 335,000

We viewed the house with an expert and he calculated the costs for us. The 100,000 includes about 15,000 for a kitchen, floors, and walls.
Some of the floors can remain (e.g. parquet only needs to be sanded) and for both (floors and walls) we plan to do a lot ourselves before you complain that 15k won’t be enough here.

We now want to borrow 255,000 and have two offers so far. One from the local Sparkasse and one via a broker from DSL-Bank:

Broker (DSL-Bank):
KFW 124 (1.3%) and KFW 152 (0.75%) each with 50,000 and over 10 years as full repayment loans (each 1 year repayment-free), because I don’t want to have to refinance small amounts in 10 years.
155,000 from DSL-Bank with 20 years fixed interest at 1.97%

Sparkasse:
KfW 124 (1.3%) and KfW 152 (0.75%) as bullet loans with 10 years fixed interest.
10-year loan over 157,206 (building savings contract sum is included in financing) at 2.27%.
Building saver with 2.15% interest from year 11-30 (Sparkasse doesn’t do 20 years). Contract sum 227,000 (1% fee). 40% (around 94,000), which must be saved up, is lent to you directly at the start by Sparkasse at 0.001% (yes, really no zero too many), so basically for free, especially since the credit balance is interest-bearing at 0.1%.
The two KfW loans are bullet due to the low interest rate, in order to put the maximum repayment into the Sparkasse loan. From year 11 you are very flexible and can repay the remaining debt (planned about 135,000 for us) as you like.

I am still waiting for a third offer from BBBank. The non-binding offer was unbeatable at 1.34% over 15 years, but I don’t believe in it yet.

What do you think? Are you missing any information?

Are you still missing any information?

As far as I can see, you have mentioned loan amounts and interest rates. The initial repayment or the annuity is missing. You could add the calculated term. Then it would also be interesting to know what you want (not small amounts for additional financing). But do you want a long fixed interest period? Maximum repayment? Low repayment? Flexibility? Security? Simplicity? One or the other will surely still ask about the (available) income ;-).

Ok, I'll try to add briefly:

We:
Income, net, together approx. 5600 (about equal shares). Both civil servants, PKV already deducted, so actual net!

We want:
To have everything paid off in 20 years. We are calculating with a maximum installment of €1500, preferably a bit less. Interest rate security is important to us, but if we actually get 1.34% through BBBank, we could live with the residual risk of just under €15,000 after 15 years.

Loan amount €255K with a €1500 installment. You will be done after 16-17 years. A 20-year fixed interest period is therefore the wrong approach. KFW 124 anyway, the conditions are unattractive.

Have a 15-year full repayment offered to you. Completely without KFW. As a comparison basis and at the same time the simplest financing option. Next to it, place 15-year full repayment with KFW 152 with a 10-year fixed interest period. For the KFW tranche, you will get a follow-up offer when the 10 years are up. So no stress. Possibly just not such great conditions. But given the framework conditions, rather no drama, in my opinion. At the latest after another 5 years, there is plenty of liquidity available that eliminates any interest rate risk.

If the full repayment conditions unexpectedly exceed the €1500 installment, still take the 15-year fixed interest period. The remaining debt is a joke in any case. Two or three special repayments over the term and that is forgotten too. Or accept the offer to extend after 15 years; after 1-2 more years you will be done anyway. (Example: €255K at 1.8% over 15 years with a €1500 installment results in less than €25K remaining debt; 1.8% is not a great condition now and without consideration of KFW)

Are you considering €15,000 as the (residual) risk for the income? Is that the civil servant mentality? Just kidding :cool:. I would leave out the building savings contract, just a simple annuity loan, definitely no fixed interest rate for longer than 10 years. You could pay off more (unless there are burdens you haven't mentioned).

Just wanted to keep you updated:

We have actually received a binding offer from BBBank. I almost dropped my jaw when I read it... they just ignore the fact that they are supposed to offer these terms only up to 80% loan-to-value and are now offering us 1.29% over 15 years (not a full repayment loan). Really crazy. We will sign there next week.