Promotion of home ownership for families improved

With the "Home Ownership for Families" funding programme, the Federal Ministry of Building supports families with children in the construction or initial purchase of climate-friendly residential property. The conditions have now been significantly improved.

This is intended to enable more families to access the support programme. In addition to raising the income limits for families with children, the maximum loan amounts and the interest rate conditions were also adjusted. The federal government's goal is to increase the home ownership rate. 

The new maximum loan amounts for the support level "Climate-friendly residential building" are 170,000 euros (1 to 2 children), 200,000 euros (3 to 4 children) and 220,000 euros (5 and more children) as of 16.10.2023. The new maximum loan amounts for the funding level "Climate-friendly residential building - with QNG" are 220,000 euros (1 to 2 children), 250,000 euros (3 to 4 children) and 270,000 euros (5 and more children).

The effective annual interest rate is below one percent at the start of the new funding conditions. Funding is available for the new construction and initial purchase of newly constructed climate-friendly and energy-efficient residential buildings that meet the energy standard of an Efficiency House 40 for new buildings and the requirements for the new construction of residential buildings of the Sustainable Building PLUS quality seal.

A maximum of one residential unit is eligible for funding. Only private individuals who wish to build or purchase an eligible home for their own use are eligible to apply. The taxable annual household income may not exceed the limit of 90,000 euros for one child plus 10,000 euros for each additional child.

The funding is provided as project funding in the form of partial financing as a low-interest loan from federal funds. The total expenditure for the building, the services of specialist planning and construction supervision including the services for life cycle analysis or sustainability certification are eligible for funding. In the case of own work, the expenditure for materials is eligible for funding.

For further information, please visit www.kfw.de/300

(Photo: © Satya Prem, Pixabay)