If you want to buy a property today, it's not easy. Rising interest rates are being met with real estate prices that are still high in Bonn and the surrounding area. However, those looking for real estate receive support from the state. New subsidy programs are designed to help people get their own four walls.
Many property seekers are unsettled by the rise in interest rates. Interest rates for financing are currently at least 3.5 percent, in some cases even up to 4.5 percent. However, this is still less than in the early 1970s or early 1980s when interest rates were just under 9%.
However, in the past, either property prices were high and interest rates low, or prices were low and interest rates high. "Now high property prices and fairly high interest rates are coming together," financing expert Michael Keller from financial services provider Dr. Klein told the Tagesspiegel. However, new subsidy programs are intended to help people fulfil their dream of owning their own home.
New building for families
The "Home Ownership for Families" program from the Kreditanstalt für Wiederaufbau (KfW) has been in place since 1 June 2023. It is intended to make it easier for families with an income of up to 60,000 euros with one child, plus 10,000 euros for each additional child under 18, to finance a newly built home. Applicants can receive a promotional loan with reduced interest rates up to a maximum of 240,000 euros.
"Climate-friendly new build"
KfW also has the "Climate-friendly new build" funding program. New construction projects that meet the KfW Efficiency House Standard 40 are to be funded under this program. Building owners can take out a loan for this at significantly lower interest rates than those customary on the market. However, the maximum loan amount is only 100,000 euros.
If sustainability certification can be achieved with the new build, the promotional loan can also be up to 150,000 euros. Additional costs such as specialist planning, construction supervision by an energy efficiency expert and certification are also eligible for funding.
Subsidies for existing properties
KfW and the Federal Office of Economics and Export Control (BAFA) promote the modernization or refurbishment of an existing property. As a rule, buyers can choose between a grant or a low-interest loan. There are also additional funding programs in most federal states.
Let a financing expert advise you on which funding programs are suitable for you. The professional will also help you to create a suitable financing strategy for you.
Are you looking for support with financing a property? Please contact us. We will be happy to advise you and put you in touch with a neutral financial advisor.
