Low-interest KfW loans
The federal government is relaxing conditions for new building subsidies for families
October 16, 2023, 10:26 a.m
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The traffic light wants to stimulate house construction using KfW funding. The aim is to better support families in building their own home. In the future, more people should have access to cheap KfW loans. And those who keep an eye on the environment will be rewarded additionally.
The federal government wants to support families more than before in building their own house. The Ministry of Construction announced that the conditions for low-interest loans through the “Home Ownership for Families” program would be significantly improved. “This will give even more families access to the funding program,” it said.
In addition to an increase in income limits, maximum loan amounts and interest rates would also be changed. The program aims to support low- and middle-income families in building a new, climate-friendly house. In return, they receive low-interest loans from the KfW development bank. However, the program initially got off to a very slow start, which experts attributed to the strict criteria. Because: The families were not allowed to earn too much.
Interest rates of less than one percent
For one child, there was previously a taxable household income limit of 60,000 euros. According to the ministry, this limit will now be raised to 90,000 euros. For each additional child, an additional 10,000 euros is added, so that a family with two children can earn up to 100,000 euros. “We are also increasing the maximum loan amounts by 30,000 euros,” said Construction Minister Klara Geywitz. “And all of this for extremely attractive interest rates of less than one percent.”
Specifically, 170,000 euros can now be borrowed under favorable conditions for climate-friendly buildings. This applies to families with one or two children. Larger families and families who build in an even more climate-friendly way can get more money.