The Baukindergeld is a financial subsidy that helps families buy or build their own home. This can be a huge advantage, especially for young families.
Families last had the opportunity to take advantage of this subsidy between 2018 and 2021. The plan now is to launch a successor program to the Baukindergeld in June 2023 in the form of a loan with a 2-4% interest rate subsidy.
Baukindergeld: How much will be granted?
The credit line is expected to be between €140,000 and a maximum of €240,000 and is specifically intended for families with minor children who have little or no equity. The loan is linked to taxable annual income, which may not exceed €60,000 with one child. The amount increases by €10,000 for each additional child.
Entitlement to the subsidy expires in the event of moving out, renting out, or selling the property before the end of the ten-year period, for example in the event of divorce.
What will change in 2023?
The biggest difference to the previous program is that the 2023 child allowance for home buyers will be granted as a loan and will therefore have to be repaid at some point, albeit under favorable conditions. Unlike in previous years, the subsidy is also intended exclusively for the purchase or construction of new buildings that are specifically climate-friendly.
Requirements for the child allowance for home buyers
To be eligible for the Baukindergeld, the following requirements must be met:
- You have one or more minor children for whom you receive child benefit
- You have purchased a climate-friendly new-build property or are building your own home
- You will use the property as your own residence for the next ten years
- Your annual income is below the threshold, which is €60,000 for one child and increases by €10,000 for each additional child
- Your property complies with the Energy Efficiency House 40 standard and meets the "Greenhouse gas emissions in the building life cycle in accordance with the Sustainable Building Quality Seal (QNG-PLUS or QNG-PREMIUM)"
- Only required under certain conditions: Your property can provide proof of an additional sustainability certificate from an accredited certification body
How do you apply for child benefit for home buyers?
The application for the Baukindergeld must be submitted online to KfW no later than six months after moving in. The following documents are required to submit the application:
- Identity card or passport
- Registration confirmation
- Birth certificates of all children living in the household
- Purchase agreement or building permit
- Income tax assessment notices from the year before last and the year before that
Within a few weeks, you will receive notification by mail as to whether your application has been successful or not.
What happens after a successful application for child benefit for home buyers?
If the application for the Baukindergeld was successful, all necessary supporting documents must be submitted within three months. These documents include:
- Income tax assessments from the penultimate and second-to-last year
- Confirmation from KfW that the subsidized property meets certain climate-friendly building standards
- Land registry extract
- Registration certificate
Once all the evidence has been checked, the Baukindergeld is paid out in ten annual installments, depending on the number of minor children living in the household. You will receive a total of €12,000 per child, spread over the ten years.
What other subsidies are available, and can they be combined with the 2023 child allowance for home buyers?
Buyers and builders can apply for additional subsidies. For example, it should be possible to combine the new child allowance for home buyers with the KfW home ownership program (124). However, the obvious combination with the "Climate-Friendly New Construction" program (BEG KFN) is not possible, as this is linked to a higher income limit.
Other subsidies could also be examined to see whether they can be combined with the Baukindergeld. For example, the federal subsidy for efficient buildings (BEG) currently provides relief for owners who want to renovate or build energy-efficient buildings. However, there will also be changes to this subsidy in 2023. In the area of climate neutrality, the Building Energy Act (GEG), which was also renewed this year, provides the relevant regulations.
Whether and which of these subsidies can be combined with the 2023 child allowance for home buyers should be checked by an expert on a case-by-case basis. To make sure you don't lose track, feel free to get in touch with us for some personal advice.
Apply for the 2023 child allowance for home buyers and benefit when purchasing real estate!
As experienced real estate agents, we are happy to advise and assist you in finding the right property, applying for subsidies, and accompanying you throughout the entire purchase process with a personal contact person.
Contact us now and arrange a no-obligation consultation. Together, we will find the perfect solution to combine your dream home with your budget.