Low-Interest Construction Loans for Families

The Federal Ministry of Housing has launched a new funding programme via the Kreditanstalt für Wiederaufbau (KfW) intended to facilitate the purchase and new construction of climate-friendly residential property. The programme is specifically aimed at families with low and medium incomes. It started in June 2023. At the outset, the interest rate stands at 1.25% for a 35-year loan term (with a ten-year fixed-interest period). The property must meet certain KfW efficiency house criteria regarding CO2 savings.