New help-to-buy scheme due to launch on 18 September 2018

• Online applications for “Baukindergeld” scheme available from 18 September
• New programme to provide home ownership support to families and single parents

From 18 September 2018 onwards, families and single parents will be able to apply online with KfW Group to receive home ownership and retirement support under the new Baukindergeld scheme in Germany. The Baukindergeld scheme is an initiative set up by the German Federal Ministry of the Interior, Building and Community to help families with children to buy their own home for personal use.

"The creation of affordable living space is one of my key concerns. The Baukindergeld plays a particular role here. The programme offers targeted promotion for young families who wish to turn their dream of living within their own four walls into reality. Be it the construction of a new home or the purchase of an existing property, we support the first-time acquisition with a public grant of EUR 1,200 per child and year. This helps many parents and their children to move into their own home. At the same time, it helps preventing poverty amongst the elderly", said Federal Minister of the Interior Horst Seehofer.

Dr Ingrid Hengster, Member of the Executive Board at KfW Group says: “With the Baukindergeld scheme, KfW is launching a new form of financial contribution, which fits in well with the loans available under KfW's home ownership programme. This will help to increase the level of home ownership in Germany. Furthermore, Baukindergeld makes an important contribution to financial security during old age for families with children and single parents. KfW's grant portal is a digital platform that provides users with a quick way to apply for Baukindergeld.”

The Baukindergeld scheme consists of the following key points:

• Financial support for home ownership among families and single parents in Germany where at least one child under the age of 18 lives in the same household.
• Financial contribution of EUR 1,200 per child per year for applicants building a new home or buying their first property, which they inhabit for a period of at least 10 years (i.e. a total of EUR 12,000 for one child)
• An income threshold of EUR 75,000 of taxable household income per year applies plus EUR 15,000 per child (i.e. EUR 90,000 for one child, EUR 105,000 for two children)
• Baukindergeld will be granted with retroactive effect from 1 January 2018
• Baukindergeld will not be paid out until the family has moved into the property and will be disbursed once a year
• Baukindergeld can be combined with other KfW promotional programmes, such as those for energy-efficient construction and refurbishment, as well as programmes offered by the federal states

Families and single parents can apply online using the simple process on the KfW grant portal

Information on the application process will be available from 18 September 2018 at the www.kfw.de/baukindergeld website.