At the beginning of 2020, KfW funding programs for refurbishment and age-appropriate conversions were increased. This makes loans in connection with energy-efficient or age-appropriate renovation even more lucrative. Especially since the modernization of one's own house is currently particularly well suited to building up assets and securing oneself for old age.
In the following we inform about key points of the new programs, which, as in the past, can not be accessed directly but through a bank. However, we recommend that you obtain detailed advice from independent mortgage brokers beforehand. Whether these KfW subsidy programs are worthwhile for you depends on the scope of the renovation and the targeted energy efficiency class, which are specified by KfW.
KfW subsidies for energy efficiency measures and efficient buildings increase significantly
The KfW subsidy programs for the renovation of a residential building to a "KfW Efficiency House 55" grant a repayment subsidy of 40 percent. And that for a maximum loan amount of 120.000 euros. Your savings: up to 48.000 of the refurbishment loan you do not have to repay.
If you are unable to meet the Efficiency House 55 standard with the renovation measures and fall into a lower efficiency class, the repayment subsidy is also reduced. In the end, a calculation example: investing less for a lower efficiency class and therefore benefiting from a lower repayment subsidy can still be lucrative for you; because in the end you spend less money on the modernization and are debt-free more quickly.
KfW supports the conversion to renewable energies
The aim of this KfW refurbishment program is to ensure that the building after refurbishment is as far below the requirements of the Energy Saving Ordinance or the Building Energy Act as possible. Both insulation and conversion to renewable energies are subsidized .z. B. if wood heating, solar thermal or heat pumps provide the heat. The promotion of renewable energies by the KfW is a particularly interesting financing model for the modernization of the own home.
Oil heating systems are not subsidized. This also applies to combined heating systems based on renewable energies, but which continue to use oil. Solar thermal and pellet systems as well as wood gasifiers and heat pumps, on the other hand, are expressly subsidized. Gas condensing boilers in combination with renewable energies are also supported by the KfW subsidy programs for refurbishment.
KfW funding programs for refurbishment are also available for individual measures – subject to conditions
Individual measures on buildings also receive a higher repayment subsidy. It rises to 20 percent with a maximum loan amount of 50.000 euros. However, KfW no longer subsidizes everything. Some funding areas are dropped. But these are covered by the Federal Office of Economics (BAFA).
Since January 2020, KfW has not been subsidizing oil and gas condensing boilers and supplementary systems for the use of renewable energies. The "heating package" and the "ventilation package" have also been discontinued. BAFA is now responsible for this, but also within clearly defined framework guidelines. However, an experienced construction financing expert can give you an exact overview of these possibilities.
For all KfW subsidy programs for renovation, the question is: investment subsidy or repayment subsidy?
Alternatively, pure investment grants are also available for eligible measures and complete refurbishments if building owners do not wish to take out a loan from KfW. The amount of the pure grant is now identical to the repayment grant.
There are repayment subsidies likewise, if a house is again built. Here, too, there is a subsidy. For a "KfW Efficiency House 40 Plus" with photovoltaic system, the subsidy increases to 25 percent. 20 percent for a "KfW Efficiency House 40" and 15 percent for a new "KfW Efficiency House 55". The KfW provides a maximum loan amount of 120.000 euros.
KfW subsidy programs for renovation also for age-appropriate conversions
For the reduction or elimination of barriers to access (z. B. stairs, steep ramps) or within the property (z. B. Widening of doors, wheelchair-accessible bathrooms) there is for the renovation and modernization at the KfW Bank either a loan of 50.000 euros (KfW program 159) or a grant of up to 6.250 euros (KfW program 455-B). The Federal Ministry of the Interior, which is responsible for construction, has increased the funds for KfW Program 455-B by 25 million euros to 100 million euros. Simply for the reason that in the past the funds in the 2. half of the year were often out of stock. This initial increase is intended to ensure that the subsidy pot lasts for a whole year.
Innovations also in the KfW Home Ownership Program
The interest rates for the home ownership program (no. 124) for ten-year fixed interest rates, KfW has now lowered them to 0.75 percent effective annual interest rate. This interest rate thus corresponds to that of the Energy-efficient Construction (KfW 153) and Energy-efficient Refurbishment (KfW 151) programs. To these conditions now a KfW credit can be taken out up to a maximum amount of 100.000 euros for the owner-occupied property with a maximum fixed interest rate of 10 years.
However, this KfW loan should be well considered and examined. Because due to the current low interest rate situation, there are actually even more favorable construction financing interest rates on the regular loan market as well.However, this depends on factors such as a good credit rating and a corresponding equity share. Given these factors, it may well make sense to decide against a subsidized loan. Because then you even have the option of a longer fixed interest rate (z. B. 15 or 20 years) at particularly favorable conditions in order to secure the currently very low interest rates for a long period of time.
KfW subsidy programs for renovation and offers from BAFA for individual measures
The KfW subsidy programs are particularly interesting for renovators and modernizers. However, the regulations and framework conditions stipulated by KfW must be examined carefully. Because particularly the subsidized energetic reorganization measures must fulfill exact limit values after completion. And this fulfillment can drive the investment in the reorganization eerheblich upward. Therefore, in the area of energy-efficient refurbishment, it should always be checked whether a possibly lower subsidy that is granted for a less energy-efficient modernization measure is actually better in the end from a financial point of view.
In order to be fully informed and to obtain a comprehensive overview of all modernization and refurbishment programs, it is advisable to seek advice from construction financing experts who are independent of any bank. In advance, however, you should define what you would like to tackle in terms of renovation, because this defines the Forderprgramme, in Betracht kommen. Here is an initial overview:
- Roof renovation
- Phototvoltaik plant
- Solar thermal system
- Ventilation system
- Heating system
- Building insulation
- Window renovation
- Roller shutter or folding shutter (also burglary protection)
- Car parking and garage
- Loggia, balcony and terrace
- Burglary protection
- age-appropriate conversions
- age-appropriate bathroom renovation
- Assistance systems (Smarthome)
This list shows a rough overview of renovation and modernization measures that are subsidized by KfW or BAFA. This classification includes many individual measures that are eligible for subsidies.
Benefit from the expertise of experts
An external energy efficiency expert or. Energy consultant helps you to plan and monitor the renovation. This is also financed through a KfW program (431) up to 4.000,- Euro subsidized. This is certainly money well spent.
In addition, it is advisable to consult a bank-independent construction financing advisor for complete financing. This also helps to find the best mix of funding and "normal" construction financing. Depending on the scope of the renovation project, a combination makes sense in order to finance safely and cheaply in the long term.
Lift a 1960s home to modern standards now: With renovation financing and subsidized loans from KfW.