Savings Phase
You conclude the building savings contract for a specific contract amount. You then save toward this amount in monthly installments, which can be based on the standard savings contribution. If you receive government subsidies or other asset-building benefits, these can also be paid into the building savings contract. Special payments, such as Christmas bonuses or cash gifts from parents and grandparents, can also be contributed. Through these deposits and the fixed annual interest, your savings grow until the minimum required savings balance of 30–50% of the contract amount is reached.

Allocation Phase
Once you have saved the minimum balance and met the minimum savings period as well as the required rating score, you become entitled to allocation. The building savings contract then becomes ready for allocation, giving you several options:

You can draw down the loan and, together with your saved balance, use the full contract amount.
Alternatively, you can withdraw all or part of your savings and take the loan at a later date.
If you do not yet need the payout of the building savings contract, you can postpone the allocation and continue saving. However, this proportionally reduces the amount of the later loan in relation to the contract amount.
If you do not wish to use the loan at all, you can also simply have your accumulated savings paid out.

Loan Phase
The loan or repayment phase begins when the building savings loan is applied for and paid out. During this phase, you make fixed monthly repayment installments consisting of interest and principal. While the interest portion decreases as the outstanding balance declines, the principal repayment portion increases accordingly.