Federal Housing Minister Klara Geywitz has unveiled a new loan initiative that should help low-income families buy a house in Germany, even without a large deposit.
Loan program to support low-income families with their own home
A total of € 1 billion will go to the scheme, which is primarily intended to benefit “small and middle income families,” Geywitz told Funke Media Group newspapers.
The program will be aimed at families with at least one child under the age of 18 who have a maximum joint income of 60,000 euros, to which an additional 10,000 euros will be added to this threshold for each additional child.
The program would allow families to receive a low-interest loan from the state development bank KfW, instead of having to save enough capital to secure a mortgage with a deposit. The first round of funding will be available from April 2023.
However, since the money for the program comes from the government’s climate transformation fund, only buildings that meet the highest energy efficiency standards will be eligible for funding.
The scheme replaces that of the German government Baukindergel subsidy
“In view of the tight real estate market and the increases in the prices of building materials, [families] they find it particularly difficult to create accessible living space for themselves, “Geywitz said in an interview with Funke Media Group.” That’s why we’re deliberately targeting them with our new funding. ”
The new loan scheme will replace the Baukindergel subsidy, a scheme introduced in 2018 by the previous “grand coalition” government that expired in 2021. Under this subsidy, families with a family income of up to € 90,000 could apply for a subsidy of € 12,000 per child to build or buy a house. or apartment.
By clicking Sign Up, you agree that we can process your information in accordance with our privacy policy. For more information, visit this page.
