KfW funding for new construction, purchase and modernization

  • KfW funding is available for both new construction and purchase as well as for the modernization of existing real estate.
  • Depending on the program, KfW either promotes a low-interest loan or pays a subsidy.
  • If you energetically refurbish your property, you must involve an energy consultant to receive KfW funding.
  • You either apply for the funding yourself via the subsidy portal of KfW or your bank applies for the development loan for you.
  • In the choice of your financing partner, you also remain completely free with KfW loan. With the following button you can easily and conveniently find the cheapest provider for your mortgage lending.

 

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Picture: Home in planning Image: © JenkoAtaman / Adobe Stock / Text: Verivox

Whether in private house construction or the modernization of the home: For numerous construction measures there is a promotion by the public-law investment bank KfW (Kreditanstalt für Wiederaufbau). Above all, subsidies exist if you build or renovate in a climate-friendly way – ie for investments in a high energy building standard. KfW funding is also available for the age-appropriate conversion of your home or your own home purchase. We explain how you get KfW funding, what measures KfW funding is for and what forms of support there are.

> KfW funding programs (PDF)

KfW funding is available as a grant and as a loan

KfW funding is available as a grant and as a loan

KfW funding exists for developers as well as for homeowners who want to rebuild and modernize their property. The requirements that applicants have to fulfill for KfW funding are defined in the underlying funding program . For a list of the most important funding programs just click on the button:

Basically, there is KfW funding in the form of investment subsidies or low-interest loans. In the case of investment subsidies, the Bank contributes a percentage of the cost of a construction project. Special conditions are granted for the low-interest KfW promotional loan. The eligible person can thus finance his construction measure wholly or partly at a particularly low interest rate. Sometimes the respective KfW funding program also includes an amortization subsidy. Then part of the loan does not have to be repaid.

More about: KfW – tasks, goals and areas of activity

Find a suitable KfW funding program

Find a suitable KfW funding program

As a public-law investment bank, KfW is active in numerous business areas. For example, there are subsidies in the form of favorable student loans or the bank supports start-ups. Even those who want to build, buy or convert a property is facing a multitude of different subsidy programs. The most important of these is briefly introduced (as of May 2018):

KfW 124: Home Ownership Program

What is being funded? Construction or purchase of a self-used property

conditions:

  • up to 50,000 euros as a low-interest loan
  • Debit Interest: 1.00 to 1.55 percent
  • 5 or 10 years fixed interest rate
  • 4 to 25 years duration

 

KfW 134: Home Ownership Program – Cooperative Shares

What is being funded? Financing of cooperative shares for housing

conditions:

  • up to 50,000 euros as a low-interest loan
  • Debit Interest: 1.00 to 1.55 percent
  • 5 or 10 years fixed interest rate
  • 4 to 20 years duration

 

KfW 152 / KfW 152: Energy Efficient Refurbishment – Credit

What is being funded? Renovation to the KfW Efficiency House (KfW 151) and individual energy measures (KfW 152)

conditions:

  • up to € 100,000 (KfW 151) or up to € 50,000 (KfW 152) as a low-interest loan
  • Debit interest: 0.75 to 0.85 percent
  • 10 years fixed interest rate
  • 4 to 30 years duration

Special feature: 7.5 to 27.5 percent repayment subsidy, max. 3,750 to 27,500 euros (depending on the efficiency house standard achieved)

 

KfW 153: Energy-efficient construction

What is being funded? KfW Efficiency House – construction or purchase of a new building

conditions:

  • up to 100,000 euros per housing unit as a low-interest loan
  • Debit Interest: 1.65 to 2.05 percent
  • 10 years fixed interest rate
  • 4 to 30 years duration

Special feature: 5 to 15 percent repayment subsidy, max. 5,000 to 15,000 euros (depending on the efficiency house standard achieved)

 

KfW 40, KfW 55, KfW 70: Overview of Efficiency House Standards

KfW 159: age-appropriate conversion – credit

What is being funded? Conversion or purchase of age-friendly converted living space

conditions:

  • up to 50,000 euros per housing unit as a low-interest loan
  • Debit interest: 0.75 to 1.30 percent
  • 5 or 10 years fixed interest rate
  • 4 to 30 years duration

Special feature: The program also includes individual measures for more burglary protection.

 

KfW 167: Energy Efficient Refurbishment – Supplementary Credit

What is being funded? Conversion of heating to renewable energy and purchase of appropriate housing

conditions:

  • up to 50,000 euros per housing unit as a low-interest loan
  • Debit interest: 1.45 percent
  • 10 years fixed interest rate
  • 4 to 10 years duration

 

KfW 270: Renewable Energies

What is being funded? Construction, acquisition and expansion of renewable energy installations

conditions:

  • up to € 50 million per project as a low-interest loan
  • Credit-based debit interest: from 1.25 percent
  • 5 to 20 years fixed interest rate
  • 5 to 20 years duration

Special feature: In addition to private individuals, the program is also aimed at companies, cooperatives and other organizations.

 

KfW 275: Renewable Energies – Battery Storage

What is being funded? Stationary battery storage systems in conjunction with photovoltaic systems

conditions:

  • up to 100 percent of the cost as a low-interest loan
  • Credit-based debit interest: from 1.1 percent
  • 5 to 20 years fixed interest rate
  • 5 to 20 years duration

Special feature: 10 to 16 percent repayment subsidy (depending on the date of application)

 

KfW 430: Energy Efficient Refurbishment – Grant

What is being funded? Renovation to the KfW Efficiency House and individual energy measures

conditions:

  • 10 to 30 percent of the eligible costs as a grant
  • Max. 5,000 to 30,000 euros per housing unit
  • Grants are paid only from 300 euros

Special feature: The amount of the subsidy varies depending on the KfW Efficiency House standard achieved

 

KfW 431: Energy Efficient Building and Renovation – Construction Support

What is being funded? Planning and construction supervision by an expert for energy efficiency

conditions:

  • up to 50 percent of the cost as a grant
  • Max. 4,000 euros per project

Special feature: Can only be used in combination with the promotion programs KfW 151/152, KfW 430 and KfW 153

 

KfW 455-B: age-appropriate rebuilding – investment subsidy barrier reduction

What is being funded? Conversion or purchase of age-friendly converted living space

conditions:

  • Subsidy of 10% of the costs for single-person barrier-reducing measures
  • Subsidy of 12.5 percent of the cost of conversion to the standard “age-appropriate house”
  • Max. 6,250 euros subsidy per unit

Special feature: Currently no applications for subsidies for barrier reduction can be made.

 

KfW 455-E: age-appropriate conversion – investment subsidy burglary protection

What is being funded? Measures for burglar protection in an existing property as well as the first purchase of appropriately converted living space

conditions:

  • Grants are available for investments of 500 to 15,000 euros
  • 20 percent subsidy for all costs up to 1,000 euros
  • 10 percent subsidy for additional costs
  • Max. 1,600 euros in total subsidy

 

 

Often, an energy consultant must be involved in KfW funding

Often, an energy consultant must be involved in KfW funding

If you build an efficiency house (KfW 153) or rebuild your existing property in an energy-efficient way (KfW 151 / KfW 152 or KfW 430), the respective funding program usually requires a qualified “energy efficiency expert” to be involved in the measure. It is to ensure in the planning phase and on-site that the goals are achieved. The German Energy Agency (dena) keeps a list of all energy consultants with the necessary qualifications. Consumers can conveniently search for suitable experts in their area on the website “energy-energy-experten.de”.

Energy-efficient refurbishment – with the support programs KfW 430 and KfW 151/152

At the same time, energy consultants can lead the clients through the jungle of the jungle. Frequently, other funding is available for modernization – for example, the Federal Office of Economics and Export Control (BAFA). Sometimes there are also regional subsidies or another KfW funding program that could be meaningfully combined. The experts for energy efficiency know each other and give valuable tips. KfW participates in the costs with a subsidy of up to 50 percent (KfW 431).

This is how KfW funding is applied for

This is how KfW funding is applied for

How builders have to apply for KfW funding depends on the respective funding program. Almost always, however, the application must be submitted and approved before you begin the planned action or sign the purchase contract for a eligible property. The application and disbursement process for KfW funding also differs depending on whether you apply for grants or a low-interest loan.

Development loan is requested through the bank

A KfW loan is not requested by you, but by the bank in which you have also completed your mortgage lending. The sending bank submits the application to KfW and the development loan then flows into your real estate financing. Once the application has been approved, you can begin to build or conclude the contract of sale. If the incentive program provides for a repayment grant, it will be paid out after completion of the construction work. The payment of the repayment subsidies is also requested via the sending bank.

Incidentally, you are completely free to choose your financing partner. Our tip: Particularly in the case of large investments such as real estate financing or the modernization of an existing property, the comparison of providers is worthwhile. Because of the high sums and long maturities, even small interest rate differentials have a big impact. For a loan of 200,000 euros with a repayment over 20 years already incurred by a 0.2 percentage points higher interest rate additional costs of 4,500 euros.

A cheap bank for your mortgage lending can be found easily and conveniently via our mortgage lender. If you are already interested in a specific KfW funding program for your project, please indicate this with your inquiry. For this, a free text field is available in the input mask.

To the mortgage lender

You must apply for grants yourself

Many funding programs provide for a grant. You must apply for this yourself via the grant portal of KfW. The documentation you need for the application differs depending on the funding program. For example, when applying for the Energy Modernization Grant, you will need to provide a specific ID, which you will receive from your Energy Advisor.

Important: Start your project only after your grants have been approved. Even if the planned measures were actually eligible, most KfW programs exclude funding for projects already started or completed. The grants are paid after completion of a measure. With the energetic modernization, a confirmation of the energy advisor is necessary again. The payment is again requested via the grant portal of KfW.

 

 

 

Heidelberg. For today’s Environment, the independent comparison portal Verivox points to favorable green tariffs in the areas of electricity and gas. Those who have never looked after another energy supplier can relieve the burden on the environment by switching to an eco-tariff and at the same time significantly reduce annual energy costs. In the electricity sector, an average of 127 euros can be saved and in the gas sector 194 euros.

Picture: Renewable Energies 

“The most important selection criterion for energy tariffs is still the price. However, additional environmental added value is proving to be a powerful selling point that consumers are happy to accept, “says Jan Lengerke, a member of Verivox’s executive board. “The energy providers have recognized this and are expanding their eco-offers accordingly.”

Green electricity rates significantly cheaper than primary care

The average green electricity costs in Germany are calculated using the Verivox Ökostrompreisindex. Here are the cheapest offers from the largest and most well-known green electricity providers (LichtBlick, EW Schönau, Greenpeace Energy, natural power) and the most favorable offers with green electricity (Ok power, green electricity label, TÜV) are considered.

The Verivox Eco-Price Index shows a kilowatt-hour price of 26.79 cents on average in June 2013. For a four-person household with a consumption of 4,000 kWh per year, annual electricity costs of 1,072 euros come together.

For comparison: In the basic rate, in which all consumers are, who have never taken care of a better deal, arise for the same purchase quantity average cost of 1,199 euros. With an eco-electricity tariff, the annual electricity bill can therefore be reduced by an average of 127 euros.

Wide range of offers at Ökogastarifen

In the gas sector, there are two types of tariffs that promise additional environmental benefits. In the case of climatological tariffs, the CO2 produced by the gas consumption is compensated elsewhere. In addition, there are also biogas tariffs in which a certain percentage of gas from renewable sources is mixed.

These offers are summarized in the Verivox Eco-gas Index. A sample household with an annual purchase quantity of 20,000 kWh currently pays an average of 1,304 euros.

The basic supply tariff of the local utilities moves at the same consumption currently at an average of 1,498 euros. The switch to an eco-tariff can thus save an average of 194 euros per year.

“In view of these high and at the same time sustainable savings potential, we advise all consumers to make a regular comparison of electricity and gas prices,” says Lengerke. “The change of provider is fast and safe. At Verivox only fair rates are recommended, the termination takes over the new provider. The uninterrupted supply is guaranteed by law. “

Further information

With Verivox you are always up to date. Whether energy, telecommunications, finance or insurance – You can find the latest news and valuable tips in our daily news.