A home loan and savings contract has long been considered the first building block for owning a home. But you should think twice about the deal.
(Photo: dpa)
Frankfurt Bausparen has a long tradition in Germany. In 2020 there were more than 25 million home loan and savings contracts in German households, so almost every second household had signed a contract. Building society savings are not worthwhile for very few today, and building societies are making headlines these days again and again.
The Higher Regional Court in Celle recently ruled that some institutes wrongly demanded account management fees from their savers in addition to closing fees. In addition to quarrels about fees, the practice has been causing displeasure among building society savers for a number of years that building societies are terminating old, comparatively high-interest contracts in a row.
For newcomers, on the other hand, the persistently low interest rates make building society savings unattractive.
Anyone who dreams of owning a home must ask themselves whether a home loan and savings contract is still worthwhile for financing or whether it would be better to save up equity for an annuity loan.
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