The financing proposal shows an interest payment and a savings contribution. Together they make for a manageable monthly burden. Nevertheless, you should not automatically read them as interest and repayment of an ordinary annuity loan. First it must be clear where each payment flows and when the loan is actually to be repaid.
Distinguish two accounts and two purposes
Our editorial recommendation: Have the loan balance and the savings balance shown separately. For each monthly payment, ask whether it pays costs, builds assets or reduces the outstanding loan amount. The total transfer alone does not explain this effect.
The LBS describes for its pre-financing a model of an interest-only loan, ongoing interest payments and parallel saving into a building society contract (Bausparvertrag). After the envisaged settlement follows the repayment of the building society loan. [VORFIN] That demonstrates the functioning of this described offer model, not universal terms of all providers and not a recommendation for your personal situation.
Have the transition between the phases explained
Set out with the offering party the prerequisites for the intended settlement. What balance level, what contract status and what further conditions are required? Which date is confirmed and which is based on an assumption? A later expected allocation is not simply an arbitrarily selectable date in your own planning.
Also ask for the payment schedule after the transition. The later instalment and remaining term are part of the overall comparison. Costs for conclusion or further contractual services must be considered on the basis of the concrete documents. The article neither claims a fixed allocation date nor a general saving compared with another financing.
Example: savings balance is not the same as an account repayment
In an invented simplified model an outstanding loan debt of 150.000 euros initially remains, while 30.000 euros of savings are built up in a separate contract. From this one must not claim that the loan account already shows only 120.000 euros. Only the intended actual use of the savings and the further financing change the respective account balances. Fees, interest and details of the real processing are deliberately not calculated in this illustration.
The example helps when reading the documents. It is not a complete comparison of the economic net position and not a forecast of how much savings you will have on a particular date.
Do not compare only monthly instalments
If you look at an alternative, use the same financing requirement and comprehensible time periods. Request a clear course of all obligations including a possible later loan. Identical initial payments can mean different remaining debts, asset positions and later payments.
Also note what consequences a lower saving performance or a changed transition would have. An option to change should only be called flexible when the concrete agreement actually supports it. The next sensible step is a comprehensible overall plan in which loan debt, savings, costs and future obligations are recognisably separate. Only then can a suitable individual decision be prepared.