The new KfW funding program “Young Buys Old” (home ownership for families – purchase of existing property) will start on September 3, 2024. It is aimed at families with at least one minor child who purchase an existing property with a low energy standard and commit to renovating it in terms of energy efficiency.
The maximum household income may not exceed EUR 90,000 for one child, plus EUR 10,000 for each additional child. Low-cost subsidized loans can be used to purchase the property, for which the Federal Ministry for Housing, Urban Development and Building (BMWSB) provides funds to reduce interest rates. For example, the interest rate for a loan with a term of 35 years and a 10-year interest rate fixation is currently 1.51% effective.
Katharina Herrmann, KfW board member responsible for domestic funding business, said at the launch of the program: “We are delighted to be able to support families with ‘Young Buys Old’ when they buy an older property in need of renovation. On the one hand, families benefit directly from this funding because we help them to buy their own home with low-cost loans funded by the federal government. On the other hand, the mandatory energy renovation of old buildings ensures a reduction in energy consumption in the residential building stock as a whole – and thus not only benefits your own wallet, but also the climate.”
