German mortgage subsidies 2026: the programme that fits owner-occupiers, including KfW funding for buying a home
Since the BEG reform of 21.07.2026, the subsidy amounts are fixed. This roadmap shows in four steps (buying or renovating, children in the household, own contribution, tax bonus) which of the seven programmes fits your project — with current figures, not estimates. Free by email, no sales pressure. The PDF itself is in German and English; it keeps the German programme names of the subsidies it covers.
Which of the German mortgage subsidies fits my project as an owner-occupier?
The right programme depends on the project, not on preference. Buying an existing property fits Wohneigentumsprogramm 124 (up to €100,000), replacing the heating fits BEG EM 458, and full renovation to efficiency-house standard fits KfW 261. For the share a grant does not cover, the top-up loan 358/359 applies.
What's in the roadmap
- Buying an existing property. Wohneigentumsprogramm 124 — up to €100,000, no conditions attached, no repayment bonus.
- Building or first purchase with children. Wohneigentum für Familien (300) — €170,000 to €270,000, income-dependent; the limit is €90,000 taxable household income with one child.
- Buying a run-down older building. Jung kauft Alt (308) — amount tiered by number of children, new tier from 03.08.2026.
- Replacing the heating. BEG EM 458 — grant from base funding plus a climate-speed bonus, capped at 70% (80% for low incomes).
- Full renovation. KfW 261 — loan with repayment bonus, requiring a renewable-energy class since 21.07.2026.
- Barrier reduction in an existing home. Altersgerecht umbauen (159) — up to €50,000, neither a care level nor an age limit required.
- The remaining share. Top-up loan 358/359 — up to €120,000 per residential unit, on top of the approved grant.
- None of these fit? The §35c EStG tax bonus as an alternative — 20% of costs over three years.
Open the file directly — no form: Owner-occupier funding roadmap 2026 (PDF, 4 pages) (Nederlands) · All KfW programmes 2026 with amounts · KfW funding overview 2026 (PDF, 4 pages) (Nederlands)
What does each programme offer, and which condition is overlooked?
The table shows per project the programme, the amount and the condition people overlook, starting with Wohneigentumsprogramm 124 for buying an existing home to live in.
| Your project | Programme | Amount | The condition people overlook |
|---|---|---|---|
| buying an existing property to live in yourself | Wohneigentumsprogramm 124 (home-ownership programme) | up to €100,000 | no strings attached and no repayment grant — but combinable with state residential-housing support; it lowers the loan-to-value of the more expensive bank tranche |
| new build or first purchase with children in the household | Wohneigentum für Familien 300 (home ownership for families) | €170,000 to €270,000 | income-related — the limit is €90,000 of taxable household income with one child and rises with every further child. The amount depends on the number of children AND on the funding level |
| buying an old building in need of refurbishment, with children | Jung kauft Alt 308 (young buyers, old buildings) | €140,000 / €160,000 / €180,000 | refurbishment within four and a half years to Effizienzhaus 85 EE (German energy-efficiency standard) or to the listed-building standard, otherwise the interest advantage can be reclaimed. The higher tier applies from 03.08.2026 — before that €100,000 / €125,000 / €150,000 |
| replacing the heating system | BEG EM 458 (a grant) | eligible expenditure up to €28,000 for the first residential unit | 30 % basic funding plus a speed bonus (Klimageschwindigkeits-Bonus) of 16 percentage points, capped at 70 % (80 % for taxable household income up to €30,000, up to €40,000 with the family supplement). The bonus falls on a set schedule — the later the application, the lower it is |
| complete refurbishment to the Effizienzhaus standard | KfW 261 | up to €150,000 per residential unit | the only one of these programmes with a repayment grant on the loan. Since 21.07.2026 the EE class (renewable-energy class) has been compulsory and combining it with single measures (458/BAFA) for the same project is ruled out |
| removing barriers in the home you already own | Altersgerecht umbauen 159 (age-appropriate conversion) | up to €50,000 | neither a care level nor an age limit is required; that is why the programme is regularly discovered too late — only once the conversion has already been commissioned |
| the share of the cost that a grant does not cover | Ergänzungskredit 358/359 (supplementary loan) | up to €120,000 per residential unit | on top of the grant already approved; interest advantage for owner-occupiers up to €90,000 of taxable household income. Anything beyond that runs through the bank loan — and that is where our work begins |
Why does it matter whether there are children in the household?
In the case of Jung kauft Alt (308) and Home Ownership for Families (300), the amount is tiered according to the number of children — neither scheme applies if there are no children, and in the case of 300, there is also an income limit of €90,000 (one child).
Neither of these factors is relevant under the Home Ownership Scheme 124.
Which four steps does the roadmap follow?
Four steps: buying or renovating? Children in the household? Does the subsidy cover the remaining share — or do you need the 358/359 top-up or a bank loan? None of the seven fit — then §35c EStG. The PDF is in German and English and keeps the German programme names; it comes free by email.
Which two questions does the roadmap ask first?
The roadmap first asks whether you are buying or refurbishing, and then whether children live in the household; this determines the suitable programme.
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Which BEG funding in 2026 suits my project as an owner-occupier? Which BEG funding in 2026 fits depends on the project, not on what you would like. Purchase of an existing property → Wohneigentumsprogramm 124 (home ownership programme, up to €100,000, no conditions attached). New build or first purchase with children → Wohneigentum für Familien (300), €170,000 to €270,000, depending on income.
Purchase of an old building in need of refurbishment, with children → Jung kauft Alt (308), staggered by number of children, with an obligation to refurbish within 4.5 years.
Heating replacement → BEG EM 458, grant of 30 % basic funding (Grundförderung) plus bonuses, capped at 70 %.
Complete refurbishment to Efficiency House standard → KfW 261, the only one with a repayment grant, since 21 July 2026 with a mandatory EE class and not combinable with 458. Reducing barriers → Age-appropriate (Altersgerecht) conversion (159), up to €50,000. For the own contribution that a grant does not cover → supplementary loan (Ergänzungskredit) 358/359 up to €120,000.
If none fits, the tax bonus under § 35c EStG remains: 20 % of the costs over three years, up to €40,000, for owner-occupiers only. No funding or tax advice.
Will you submit the funding application for me? No — it goes through the financing bank or, for 458, through the specialist contractor; we take care of the bank financing of your own contribution.
Why choose the bank before applying, and apply before signing?
Because the loan programmes run through the financing bank and not every lender passes every programme, and because the application must come before the contract is signed.
The four steps of the sequence, as in the PDF: 1. classify the project, 2. check children and income, 3. choose the bank before you apply, 4. apply first, sign afterwards.
Choose the bank before you apply: The loan programmes run through the financing bank. Not every lender passes through every programme — once the bank is fixed, the choice of programme is already narrowed.
Apply first, sign afterwards — never the other way round: The start of the project is deemed to be the conclusion of any attributable supply or service contract. Almost every subsidy failure is an error of sequence, not an error of programme.
Which dates count in 2026 for subsidised funding?
Four dates decide which terms apply, starting with 20.07.2026, the last day of the old BEG terms; approved applications keep the rate in their approval.
| Date | What changes | What it means for you |
|---|---|---|
| 20.07.2026 | last day of the old BEG terms | applications already approved keep their terms — what counts is the rate stated in your approval |
| 21.07.2026 | the new BEG: the EE class (renewable-energy class) is compulsory for KfW 261, the loan is uniformly up to €150,000 per residential unit, and the interest-rate reduction is stronger | complete refurbishment and single measures can no longer be combined for the same project — the decision is taken before the first application |
| 03.08.2026 | higher tier for Jung kauft Alt (308) | what decides is the day the application reaches the KfW, not the purchase contract or the date of your signature |
| from 02/2027 | the eligible ceiling for heating funding falls every six months | anyone who intends to replace the system anyway loses money by waiting — the speed bonus falls on a set schedule as well |
Which three points do owner-occupiers regularly overlook?
Owner-occupiers regularly overlook three points:
- State residential-housing support comes on top: Every federal state has its own development bank with its own programmes and its own deadlines — in some states it is the approval that counts, not the application. All sixteen: state support by federal state (German page).
- A subsidised loan lowers the loan-to-value as well, not just the rate: Because part of the sum comes from the subsidised loan, the more expensively refinanced bank tranche shrinks — this second lever is almost always overlooked.
- Municipal programmes do not appear in any comparison portal. The Wohnungsbauprämie (home-savings bonus) and the Arbeitnehmer-Sparzulage (employee savings allowance) are also worth checking.
What if none of the seven programmes is suitable?
Then there’s the tax relief Section 35c of the Income Tax Act (EStG) as an alternative — 20 % of the costs over three years, explained in detail at Funding for energy-efficiency refurbishment.
Eligible costs up to €200,000. As an alternative only: cannot be combined with BAFA or KfW funding for the same measure. The tax adviser will carry out the binding tax assessment.
Frequently asked questions
Does the roadmap apply to my German state?
Yes — the programmes named are federal programmes (KfW and BAFA), valid across Germany. State-level subsidies may come on top, depending on where the property is.
KfW loan for buying a house, interest rate: how high is the rate?
We deliberately do not state a KfW loan interest rate for buying a house here, because it is set on a daily basis and the page would otherwise become out of date. Anyone who wants to know the current interest rate of the KfW loan for buying a house will find the rates in the terms overview on kfw.de; the binding rate is the one in the bank's commitment.
Do you also submit the subsidy application?
No. Subsidy applications go through the financing bank (for the KfW programmes) or, for 458, through the installing trade business. We handle the bank financing of the remaining share and finding the right bank with KfW pass-through lending.
What does your advice cost?
The first consultation is free and non-binding. On a mortgage, the commission is, as a rule, paid by the bank — no separate cost to you.
KfW funding for age-appropriate conversion: what is available for reducing barriers?
For reducing barriers there is the programme Altersgerecht umbauen (159), with loans of up to €50,000. Neither a care grade nor an age limit is required. We do not submit the funding application; it runs through the financing bank, and we take care of the bank financing of your own contribution.
Which KfW loan and funding apply when buying a flat?
The KfW loan for buying an owner-occupied flat runs via 124, or for families via 300 or 308. This also applies to a condominium, if you move in yourself. A KfW loan for buying a flat is applied for through the bank, before the purchase contract.
KfW Home Purchase Loan Terms and Conditions: What applies to owner-occupation and the application?
The key conditions of the KfW home purchase loan: the property must be for the borrower’s own use, the application must be submitted before the notarised purchase agreement is signed, and the application must be made via a financing partner. In addition, income and family criteria apply depending on the programme. The exact conditions are set out in the KfW approval letter and on the programme pages.
Is the roadmap valid for my federal state?
Yes — the programmes mentioned are federal programmes (KfW and BAFA). State funding is possible in addition; an overview is available under State funding by federal state (DE).
KfW funding for owner-occupied homes: what is available for a KfW home, and how does KfW home funding work?
Depending on the project, KfW funding for owner-occupied homes is either a low-interest loan for purchase or construction (124, 300, 308) or funding for modernisation (261, 458). The home must be used by the owner. KfW funding does not replace bank financing; a KfW loan is built into the overall financing as one component.
Is there an overview/roadmap of which subsidies I can combine as an owner-occupier?
Yes — that is exactly what this subsidy roadmap is. In four steps (purchase or renovation, children in the household, own contribution, tax bonus) it shows which of seven programmes (KfW 124, 300, 308, BEG 458, KfW 261, KfW 159, supplementary loan 358/359) suits your project and how the KfW loan, the BEG grant and the §35c EStG tax bonus can be combined. Free of charge as a PDF by email.
KfW loan for buying a house: which subsidised loans are there, and which one fits?
For buying a house with KfW there are three routes: the home ownership programme 124 for any owner-occupied house without energy requirements, Jung kauft Alt (308) for families buying a house in need of renovation, and Wohneigentum für Familien (300) for climate-friendly new builds and first purchases. All KfW subsidised loans for buying a house run through the bank, and the application comes before the purchase contract.
A similar situation? Let's talk.
Every mortgage is an individual case. In a free initial consultation we tell you honestly what is feasible and which bank fits.
Note. Information based on the current programme status, subject to change — the guidelines issued by BAFA, KfW and Section 35c of the Income Tax Act (EStG) take precedence. This page is for guidance only and does not constitute tax or legal advice. Brokerage of consumer property loans pursuant to the licence under Section 34i of the Trade Regulation Act (GewO) (Olga Nikushkina).
Related pages
Young buys old
KfW ‘Jung kauft Alt’ scheme (308): a low-interest loan for families purchasing an older property in need of renovation — conditions and deadlines.
Funding for energy-efficiency refurbishment
Renovation funding: BAFA grant, KfW 458 and 261, and tax relief under Section 35c — who provides what funding and how the various schemes can be combined.
Where does the time go before we get a confirmation?
How long a mortgage takes: all the steps from application to disbursement — with realistic timeframes for each stage.
Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.
