For many people, buying a home is a financial challenge, particularly because of the high equity requirements. For example, buying a property worth 400,000 euros requires 80,000 euros of equity. In order to accommodate potential buyers, the state offers various subsidy options that support the saving of equity capital or loan repayments through lower interest rates and direct subsidies. The ARD financial editorial team presented the options in more detail in the article "How the state promotes house purchases".
According to ARD-Finanzredaktion, there are two main types of state subsidies available: One is aimed at facilitating the saving of equity capital, for example through capital-forming benefits and employee savings allowances. The other type of subsidy offers support in repaying the loan, for example through the Wohn-Riester program or loans from the Kreditanstalt für Wiederaufbau (KfW), which can be significantly below the usual market interest rates.
In addition to the nationwide programs, there are also state and local authority-specific subsidies that are aimed at families with low to medium incomes or support the purchase of energy-efficient new builds. These programs can often be combined with each other to further reduce the financial burden of buying a property. Interested parties should obtain comprehensive information and obtain various offers in order to find the right subsidy for them.
Source and further information: tageschau.de
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