If the dream of owning your own home is within reach, but your financial situation is still causing you to hesitate, there are options available that can ease the financial burden. A number of federal and regional subsidy programs are available to help you build a new home, make your first purchase, or acquire an environmentally sustainable residential property.
For families, realizing the dream of owning their own home often involves numerous hurdles and financial issues. But amid these challenges, there are opportunities for support that can help families achieve their goals.
1. Subsidies for climate-friendly new construction:
Interest-subsidized loan of up to €100,000
- New construction or first-time purchase of a climate-friendly residential building (Efficiency House 40, meets ONG PLUS greenhouse gas emission requirements / no oil, gas, or biomass heating)
- For this project, KfW offers the "KfW Climate-Friendly New Construction (KFN) Residential Buildings for Private Use Loan 297" program. You can benefit from a low-interest promotional loan of up to €100,000.
2. Funding opportunities for sustainable living:
Up to €150,000 for QNG projects
- New construction or first-time purchase of a climate-friendly residential building with QNG (Efficiency House 40, ONG-PLUS or ONG-PREMIUM sustainability certificate/no oil, gas, or biomass heating)
- The "Quality Seal for Sustainable Buildings" is a government seal of approval for buildings that assesses their ecological, sociocultural, and economic quality. The federal government sets the criteria, and independent bodies award the seal at the "PLUS" or "PREMIUM" levels after an assessment. This seal is used as part of the Federal Funding for Efficient Buildings (BEG) program to take sustainability aspects into account when funding buildings. The seal serves as proof of eligibility for funding.
- If you are aiming for a sustainable residential building with QNG, the same "KfW Climate-Friendly New Building (KFN) Residential Building Private Use Loan 297" program is available to you, with extended funding of up to €150,000.
Credit terms 297
Interest rates and terms:
- You can choose between annuity loans and bullet loans.
Annuity loans:
- Terms of 4 to 35 years.
- Fixed interest rate for 10 years.
- Grace period of 1 to 5 years.
- Annual interest rate (effective annual interest rate) varies depending on the term.
Bullet loan:
- Terms from 4 to 10 years.
- Fixed interest rate for the entire term.
- Interest rate per annum (effective annual interest rate) varies depending on the term.
Loan amount:
- The loan amount depends on the subsidy level achieved.
- Climate-friendly residential building: Up to €100,000 per apartment.
- Climate-friendly residential building – with QNG: Up to €150,000 per apartment.
Payment:
- 100% of the loan amount is paid out.
- Can be drawn down in one lump sum or in installments within 12 months of approval.
- Commitment fee of 0.15% per month from the 13th month on the loan amount not yet drawn down.
Early repayment:
- Early repayment of the entire outstanding loan amount is possible, with an early repayment penalty.
- Partial repayments are not possible.
Collateral:
- The type and amount of collateral will be agreed with your financing partner.
3. Family support:
Low-interest loans of up to €220,000 for climate-friendly residential buildings
- New construction or first-time purchase of a climate-friendly residential building for families
- KfW offers the "KfW Home Ownership for Families (WEF) Loan 300" program specifically for families. Here you can benefit from a low-interest promotional loan of up to €170,000 (from 1 child), €200,000 (from 3 children) or even €220,000 (from 5 children).
4. Family support with a focus on sustainability:
Up to €270,000 in promotional loans for QNG projects
- New construction or first-time purchase of a climate-friendly residential building for families with QNG (Efficiency House 40, ONG-PLUS or ONG-PREMIUM sustainability certificate/no oil, gas, or biomass heating)
- The "Quality Seal for Sustainable Buildings" is a government seal of approval for buildings that assesses their ecological, sociocultural, and economic quality. The federal government sets the criteria, and independent bodies award the seal at the "PLUS" or "PREMIUM" levels after an inspection. This seal is used as part of the Federal Funding for Efficient Buildings (BEG) program to take sustainability aspects into account when funding buildings. The seal serves as proof of eligibility for funding.
- Families who want a sustainable residential building with QNG can also take advantage of the "KfW Home Ownership for Families (WEF) Loan 300" program and benefit from a low-interest promotional loan of up to €220,000 (from 1 child), €250,000 (from 3 children) or even €270,000 (from 5 children).
Terms and conditions for a $300 loan
Interest rates and terms:
- You can choose between annuity loans and bullet loans.
Annuity loans:
- Terms of 4 to 35 years.
- Fixed interest rate for 10 years.
- Grace period of 1 to 5 years.
- Annual interest rate (effective annual interest rate) varies depending on the term.
Bullet loan:
- Terms from 4 to 10 years.
- Fixed interest rate for the entire term.
- Interest rate per annum (effective annual interest rate) varies depending on the term.
Loan amount:
- The loan amount depends on the subsidy level achieved, the number of children under 18 in the household, and the household income.
Subsidy level for climate-friendly residential buildings:
- Maximum loan amount of €170,000 to €220,000 depending on the number of children.
Subsidy level for climate-friendly residential buildings – with QNG:
- Maximum loan amount of €220,000 to €270,000 depending on the number of children.
Payment:
- 100% of the loan amount is paid out.
- Can be drawn down in one lump sum or in installments within 12 months of approval.
- Commitment fee of 0.15% per month from the 13th month on the loan amount not yet drawn down.
Early repayment:
- Early repayment of the entire outstanding loan amount is possible, with an early repayment penalty.
- Partial repayments are not possible.
Collateral:
- The type and amount of collateral will be agreed with your financing partner.
5. Low-interest loans for home ownership:
Up to €100,000 in support
- Construction or purchase of a home/condominium
- The "KfW Home Ownership Program Loan 124" provides support in the form of low-interest loans of up to €100,000.
Credit terms 124
Interest rates and terms:
- You can choose between annuity loans and bullet loans.
Annuity loans:
- Terms of 4 to 35 years.
- Fixed interest rates for 5 or 10 years.
- Grace period of 1 to 5 years.
- Annual interest rate (effective annual interest rate) varies depending on the term.
Bullet loan:
- Terms from 4 to 10 years.
- Fixed interest rate for the entire term.
- Interest rate per annum (effective annual interest rate).
Loan amount and disbursement:
- Loan amount up to EUR 100,000.
- 100% disbursement of the loan amount.
- Can be drawn down in one lump sum or in installments within 12 months of approval, with an optional extension to a maximum of 36 months.
- Commitment fee of 0.15% per month on the loan amount not yet drawn down from the 13th month after approval.
Special repayments:
- Early repayment of the entire outstanding loan amount is possible, subject to an early repayment penalty.
- Special repayments of part of the outstanding loan amount are not possible.
Collateral:
- The loan must be secured in full by an entry in the land register.
7. Promotion of renewable energies:
Low-interest loans for photovoltaics, wind power, and more
- A new edition of the program is planned for 2024
- KfW has previously offered the "KfW Renewable Energies - Standard Loan 270" for projects involving electricity generation from renewable energies
- Combination with other public subsidies (loans, allowances, and grants) was possible
- For power generation plants (e.g., photovoltaics, wind turbines, CHP plants), it was possible to simultaneously take advantage of government subsidies in the form of a feed-in tariff
- As of November 2023, no further applications can be submitted, but the new edition could contain similar conditions.
Credit terms 270
Interest rates:
- Individual interest rates determined by your bank based on your location, financial circumstances, and collateral.
- The minimum term is generally 2 years.
Loan amount and disbursement:
- Up to €150 million per project.
- Up to 100% of your investment costs.
- 100% disbursement of the loan amount.
- Available within 12 months of approval, either in a lump sum or in installments.
- Commitment fee of 0.15% per month, starting 6 months and 2 banking days after approval.
Repayment:
- During the grace period, you only pay interest; thereafter, you pay equal quarterly installments plus interest on the outstanding loan amount.
- Option of unscheduled partial or full repayment against payment of an early repayment penalty.
- Repayment is made via your bank.
Collateral:
- The type and amount of collateral are agreed with your bank.
8. Regional support programs:
Support for land, homes, and photovoltaics
- In addition to nationwide subsidy programs, there are regional subsidy programs offered by federal states and municipalities that support various projects such as land acquisition, owner-occupied homes, or photovoltaic systems with grants, low-interest loans, and affordable land.
Support programs in North Rhine-Westphalia
- NRW Home Ownership Grant
With the "NRW.Zuschuss Wohneigentum" (NRW home ownership subsidy), private builders and property buyers have the opportunity to receive a subsidy of up to €10,000. This subsidy amounts to two percent of the purchase price for the first €500,000.
Finding your way through the jungle of subsidies can be a challenge
At Kartheuser Immobilien, we advise you on your subsidy options, which programs are suitable for you, and what best fits your financial situation—now and in the future. Contact us without obligation for further information and support with your project.
