On behalf of the German Federal Government, KfW provides funding for families buying residential properties in need of refurbish

• KfW’s “Young buys old” programme starts on 3 September 2024
• Federal Ministry of Construction provides funds for interest rate reductions on KfW promotional loans
• Effective interest rate of 1.51% with a 35-year term and a 10-year fixed interest rate

Today, the new KfW promotional programme “Jung kauft Alt” (“Young buys old”; residential property for families – acquisition of existing properties) has been launched. It is aimed at families with at least one child under the age of 18 who are purchasing an existing property with a low energy standard and who have undertaken to refurbish it to make it more energy-efficient. In order for families to qualify for the funding, their maximum household income must not exceed EUR 90,000 if they have one child, plus EUR 10,000 for each additional child. Families can make use of affordable promotional loans for their purchase, for which the Federal Ministry for Housing, Urban Development and Construction (BMWSB) provides funding to enable interest rate reductions. For example, the effective interest rate for a loan with a term of 35 years and a 10-year fixed interest rate is currently 1.51%.

Katharina Herrmann, Member of the Executive Board of KfW and responsible for domestic promotional business, said at the start of the programme:

“We are delighted to be able to support families buying an older property in need of renovation with “Young buys old”. Firstly, families benefit directly from this finance, as we help them to buy their own homes with affordable loans that have been subsidised by federal funds. Secondly, by committing to refurbishing old buildings to make them more energy-efficient, they are reducing the property's energy consumption overall – which is great for both their wallets and the climate.”

The main programme details at a glance:

• Those eligible to apply are private individuals who are buying an owner-occupied property. The household must include at least one child under the age of 18 and the taxable annual household income must not exceed EUR 90,000 in the case of one child, plus EUR 10,000 for each additional child.
• The residential property that is being purchased must be in energy efficiency class F, G or H at the time of application in accordance with an energy performance certificate.
• As is customary with KfW promotional loans, customers can apply for “Young buys old” loans with their usual banks.
• Eligible costs are the purchase price including property costs. The maximum amount of the loan depends on the number of children under the age of 18 in the household. Families with one child can apply for up to EUR 100,000, families with two children can apply for up to EUR 125,000 and families with three or more children can apply for up to EUR 150,000. The possible loan maturities range from 7 to 35 years and the interest rates can be fixed for a maximum of 20 years depending on the maturity. The “Young buys old” programme can be combined with the KfW home ownership programme (www.kfw.de/124)
• Applicants must refurbish the existing property they have bought within 54 months of KfW’s funding commitment to at least the level of a 70 EE energy-efficient house. Low-interest loans and grants from the Federal Funding for Efficient Buildings (BEG), for example, can also be used for the renovation. These include KfW’s promotion for the installation of new, climate-friendly heating (www.kfw.de/458) or KfW’s BEG residential building loans (www.kfw.de/261).

Note:

All information on the “Young buys old” programme (residential property for families – acquisition of existing properties) can be found at www.kfw.de/308

A printable graphic showing a combination of various KfW programmes for the purchase and refurbishment of an existing property is available at: Graphic Refurbishment of existing property(PDF, 142 KB, accessible)