- Loan amount under “Young Buys Old” rises significantly to between 140,000 and 180,000 euros, depending on the number of children
- Interest is subsidised with federal funds: the current effective rate is 0.53 per cent for a 35-year term with the interest rate fixed for 10 years
- Applicants undertake to carry out an energy-efficiency renovation within 54 months of funding approval; renovation through individual measures is now permitted
KfW and the German government are further improving support for families with at least one child under the “Home Ownership for Families – Purchase of Existing Property / Young Buys Old” funding product. From 3 August 2026, families on low and middle incomes who buy an existing property with a poor energy standard, occupy it themselves and renovate it can apply to KfW for a significantly larger loan. For families with one child, the maximum amount rises from 100,000 euros to 140,000 euros; for families with two children, it rises to 160,000 euros (previously 125,000 euros); and for families with three or more children, to 180,000 euros (previously 150,000 euros). Interest on “Young Buys Old” loans is subsidised with funds from the Federal Ministry for Housing, Urban Development and Building (BMWSB). The current effective interest rate on a loan with a 35-year term and a 10-year fixed-interest period is 0.53 per cent.
Making property ownership more realistic and predictable for families
Melanie Kehr, the member of KfW’s Executive Board responsible for domestic promotional business, says: “Many families want a home of their own while also having to manage a tight budget. We are therefore pleased to work with the German government to offer even better support to families on low and middle incomes when buying a residential property. A promotional loan under ‘Young Buys Old’ can now finance a larger share of the purchase price at a favourable interest rate subsidised with federal funds. This can make the route to a home of their own more realistic and predictable for more families.”
Renovation through individual measures
Applicants undertake to renovate the existing property they purchase to improve its energy efficiency within 54 months of KfW funding approval. KfW and the German government are expanding the options available to families and accommodating their individual needs more fully: the renovation can now also be completed through several individual measures. The alternative remains a systemic renovation to the “Efficiency House 85 EE” or “Efficiency House Monument EE” energy standard. When renovating through individual measures, the following generally have to be carried out:
- Replacement of windows
- Insulation of the façade
- Insulation of the roof or the top-floor ceiling adjoining an unheated roof space
- Replacement of the heating system (at least 65% renewable energy; if the existing property already meets this requirement, this individual measure does not apply)
Grants and loans for renovation
Low-interest loans and grants under the Federal Funding for Efficient Buildings programme (BEG) can be used to finance the renovation. Examples include grants under KfW’s heating support programme for installing a new climate-friendly heating system (KfW no. 458), KfW’s BEG residential building loans (KfW no. 261), and BAFA funding options (BAFA – Federal Funding for Efficient Buildings (BEG)).
Key details of the “Home Ownership for Families – Purchase of Existing Property / Young Buys Old” programme at a glance:
- Eligible applicants are private individuals buying an owner-occupied home for the first time, with at least one minor living in the household and a maximum annual taxable household income of EUR 90,000 for one child, plus EUR 10,000 for each additional child.
- At the time of application, the residential property to be purchased must be rated energy-efficiency class F, G or H according to an energy demand or consumption certificate.
- As is customary with KfW promotional loans, customers can apply for “Young Buys Old” loans through their own banks.
- Applicants undertake to renovate the existing property they purchase to improve its energy efficiency within 54 months of KfW funding approval.
- Full information on “Young Buys Old” is available at www.kfw.de/308