Get up to €70/year (single) or €140/year (married) in government bonus for your Bauspar savings.
Click to learn about Bauspar concepts, phases, and formulas
What is a Bausparvertrag?
A Bausparvertrag (building savings contract) is a German savings and loan scheme that combines a savings account with a guaranteed-rate home loan. It's offered by Bausparkassen (building societies) and is commonly used for property financing, renovations, or as interest rate insurance against future rate increases.
The Two Phases
1. Savings Phase (Ansparphase)
You save monthly until reaching the minimum savings threshold (typically 40-50% of the target amount). Interest is earned on savings but rates are usually low (0.1-1%). The allocation fee is deducted from your contributions.
2. Loan Phase (Darlehensphase)
Once allocated (Zuteilung), you receive a loan for the remaining amount at a guaranteed interest rate. This rate was fixed when you signed the contract and won't change, regardless of market conditions. The loan must be repaid over a fixed period.
Key Formulas
Fee = Target Amount × Fee %Required = Target Amount × Min. Savings %Balance = Previous + Contribution + InterestLoan = Target Amount − Savings at AllocationPayment = Loan × (Interest + Repayment) ÷ 12Rate = (Total Cost / Target Amount)^(1/Years) − 1Kombidarlehen (Combined Financing)
A Kombidarlehen combines a bank loan with a Bauspar contract for larger financing needs. Instead of waiting to save the full minimum amount, you take out a bank loan immediately while simultaneously saving into your Bauspar contract. Once the Bauspar is allocated, it pays off the bank loan.
Phase 1: Interest-Only + Savings
You pay only interest on the bank loan (no principal repayment) while making regular contributions to your Bauspar contract. This keeps monthly payments lower during the savings phase.
Phase 2: Bank Loan Payoff
When your Bauspar contract reaches allocation (Zuteilung), the accumulated savings plus the Bauspar loan are used to pay off the bank loan entirely.
Phase 3: Bauspar Loan Repayment
With the bank loan eliminated, you now repay only the Bauspar loan at its guaranteed fixed rate. The monthly payment typically decreases in this phase.
Key Benefits
- Access to full financing immediately, without waiting for Bauspar allocation
- Interest rate security: The Bauspar loan rate is fixed at contract signing, protecting against future rate increases
- Potentially lower total cost compared to a pure bank loan, especially if market rates rise