The KfW is a German state development bank and was founded in 1948 by law as a credit institution for reconstruction. The bank and KfW funding are mainly known for private building support, but is also active in other areas.

As the third largest bank in Germany (by balance sheet total), KfW not only supports private individuals, but also companies and public institutions like those in environmental protection.

For builders and buyers, KfW offers various support programs. Often, applicants can combine KfW funding programs together. KfW supports the acquisition or renovation of a property with KfW loans. Above all, KfW promotes energy-efficient real estate construction and renovation of existing real estate for the Efficiency House as well as conversion or renewable energies such as photovoltaic.

You may find more information here and here about the KfW program and program goals.

What options do KfW funding offer for existing real estate?

KfW’s promotional products for existing real estate include property purchase, energy-efficient renovation, living comfort and burglary protection and renewable energies and photovoltaics.

1. The KfW residential property program 124/134:

KfW promotes the purchase or construction of owner-occupied homes or apartments.

Buyers can apply for a low-interest loan before the beginning of the project with the financial institution of your choice. The loan is a maximum of €50,000, with an annual interest rate from 1.00%. The applicant may combine with other KfW products.

What does KfW fund?

For a new building
  • The cost of the land, if purchased within 6 months from the date of your KfW application.
  • Construction costs, such as material and labor costs.
  • Building costs for the architect, the energy/construction consultant, the notary, brokerage fees and the land transfer tax.
  • Cost of outdoor facilities. 
For a building purchase
  • The purchase price
  • Costs for repair, reconstruction and modernization
  • Additional costs such as the notary or brokerage fees and the land transfer tax

For more information about the KfW residential property program 124/134, here is the German language resource. You can also download a factsheet from KfW’s website.

2. Energy Efficient Renovation Loan 151/152

KfW funding promotes home renovations to the KfW efficiency house or individual energy measures.

Buyers can benefit from low loan rates from 0.75% annual interest rate. Additionally, buyers can apply for a grant of up to €27,500 for loan repayment up to €100,000 for each apartment when renovated as a KfW efficiency house, or 50,000 for individual energy measures.

A prerequisite for KfW’s support is the involvement of an energy efficiency expert. The energy efficiency expert who you choose to prepare the grant application and who accompanies you may be funded through up to €4,000 in subsidies.

This program promotes investment in self-occupied or rented residential buildings and condominiums as well as first-time buyers of newly renovated residential buildings or condominiums.

What does KfW fund?

The energy-efficient renovation of residential buildings where the building application or construction notice was submitted before February 2, 2002.

To learn more, download the fact sheet from KfW.

How does KfW award financial support for existing real estate?

KfW awards support for existing real estate as a loan or as a grant (subsidy).

For a loan, the KfW funding applicant does not receive a subsidy, but can finance his or her project on particularly favorable terms. Some of the interest rates on KfW loans are well below the conditions that banks and other lenders demand for similar loans.

As for subsidies, KfW goes a step further and directly participates in the costs of the project. KfW, for example, covers half the cost of professional construction support for energy-efficient renovation.

In some programs, KfW funding combines credit and subsidy. Anyone who builds energy-efficiently can not only receive a low-interest loan from KfW, but also a repayment subsidy. With this, he or she does not have to repay the entire loan. As a result, the KfW loan can be lower than other loans and will have a shorter term of the loan.

We are happy to answer any questions. Via email at [email protected] or by phone (+49)30-6577-3341. You can also start with the LoanLink mortgage illustrator here:

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