Home financing: living Riester is the first choice

Low-interest rates and high government subsidies make residential Riester offers the ideal financing for a home. The offers of building societies cut in the test from unexpectedly good, better than the Riester loans of banks.

Niedrige interest rates and high government subsidies make residential Riester offers the ideal financing for a home. The offers of building societies cut in the test from unexpectedly good, better than the Riester loans of banks.

The winner is the living Riester loans of Schwäbisch Hall building societies and building societies Baden-Wuerttemberg, Bavaria, and West. They demanded the combination of building savings and repayment-free loans with about 20-year term effective interest rates of only 4.26 to 4.41 percent.

That’s a surprise. Because in recent years, this funding model was expensive. However, to benefit from these building society offers only builders with enough equity. At least 20 percent of the purchase price and the utilities must find the customers out of pocket.

The investigation, the testers have laid a model couple with two children born before 2008 to reason that buys a single family house for 200,000 euros. 40,000 euros, the family puts itself on. She needs a loan of 160,000 euros. Financed the couple with the sum Riester loans, it annually receives 308 euros basic allowances and 370 euro child allowances.

Within the repayment term of about 20 years, the Riester subsidies add up to a total of around 13,000 euros. To arrive at a joint gross income of 60,000 euros per year, nor about 15,000 euros in tax savings. There are also many thousands of euro interest savings because the family paying off the loans by promoting faster. Such as residential Riester worthwhile for others, are shown in the infographic.

Building loan with repayment-free loans

Under favorable combination loans, the customer includes a building loan from a savings sum equal to his credit requirements. With the grace loan, Bausparkasse extended contract sums ago and has so long saved up a minimum balance, for example, 40 percent of the home savings and the savings agreement is allotted. Then he gets his credit and a savings loans disbursed.

Up to the assignment, the customer pays the savings rates for the building loan and the interest on the advance loan. If the building loan granted, it will trigger the advance loans from the banks and build society loans. He then pays the rate for housing loans. The interest rate is specified in the rule for both phases.

Riester loans with direct repayment

Most institutions offer the simpler variant: All banks in the test and two building societies offer Riester loans with direct repayment (annuity) and a duration of 10, 15 or 20 years.

Conventional loans it differs only by the state support. The best Riester loans with direct eradication and a comparable rate fixation period of 20 years provided the Alliance with an effective interest rate of 4.75 percent. This was cheaper than most unsubsidized bank loans but significantly more expensive than the best building society combo loans.

But not all Riester loans are favorable. Most deals in the test were more expensive than your average credit without subsidies.

Several conditions must be met so that customers receive the residential Riester: The funding must flow into a self-occupied property. They must be placed so that the loan is repaid until the 68th year at the latest. Each spouse must complete a separate loan agreement to exploit the promotion. And finally, contracts are only promoted that are certified by the Federal Financial Supervisory Authority.

Riester loans. Riester loans are for your home financing because of the high promotion first choice. Suitable: loans with direct repayment and combined loans of building societies. but also pick up a credit offers without subsidies. Make sure that the effective interest rate for the Riester variant is not, or not much higher than for a ungefördertes loans.

Winner. The combination of loans home loan Schwabisch Hall, LBS Baden-Wuerttemberg, Bavaria LBS and LBS West were most favorable in the current test. However, the interest rates on housing loans are changing almost daily. Therefore, always observe the Riester loans with direct repayment. The best deals in this variant had Allianz, Dresdner Bank, and LBS Baden-Wuerttemberg.

Total effective interest. Pay for combined loans of the building societies on the overall effective interest rate – called by the building societies’ total cost as an annual percentage. ” Only on this information, you can compare the building society models with other offers similar maturity. Let also create a financial plan including savings and repayment schedule for the building loan.

Old contract. You may see through and used as equity, the accumulated assets from Riester annuities, Riester bank savings plans or Riester fund savings plans. By the end of 2009, you are only allowed if you found at least 10,000 euros. has so much been but hardly anyone saved. But from 2010 You may use any amount saved in your Riester contract for your equity.

Promotion. When you complete a residential Riester loan, you should take advantage of the future benefits solely. If you already have another Riester savings contract, stop the payments for it.

Taxes. As a user of Riester subsidy, you have to pay taxes on the previously funded amounts in the retirement age. Let yourself calculate the sum of the bank or building a society that you have to pay tax from the expected retirement. So you can estimate which belongs tax burden on you.