Free State improves home ownership promotion

In Saxony, new conditions will apply to the promotion of home ownership in the future. In the Family Housing Funding Guideline, the amount of the maximum permissible total expenditure for the creation or purchase of residential property was increased from the previous EUR 300,000 to EUR 425,000. This value applies to a two-person household. For each additional person living in the household, the sum increases by 55,000 euros instead of the previous 40,000 euros. At the same time, the currently very favorable interest rates of 0.75 percent, which are fixed for 25 years, will not be increased despite rising market interest rates.

»Owning your own home is the best precaution against poverty in old age. The Free State of Saxony offers families very long-term and extremely low-interest loans for this purpose,” said Minister of State Thomas Schmidt. “With the change, we are reacting to the increased construction costs. In large cities in particular, building has become so expensive that the previous upper limits have become unrealistic.«

The creation of owner-occupied residential property by families with children is supported through the family housing funding guideline. Families with at least one child under the age of 18 can apply for particularly low-interest loans from the Sächsische Aufbaubank (SAB) if they want to build or buy their own home or condominium. If modernization, repair or conversion measures are necessary when purchasing a property, these can also be funded. The basic building block of the low-interest loan is EUR 50,000 per child.

Families who buy an old house built before 1990 and renovate it (“Young buys old” program) receive an additional 50,000 euros in subsidized loans. A further EUR 30,000 is granted if the household is on a low income. In addition, the loan increases by another 15,000 euros if the household includes a family member with a severe disability.

The changed upper limits for total expenditure came into effect today (June 17, 2022) after publication in the Saxon Official Journal.

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