Increase equity through Riester?

Hello,

the starting point: About 10,000 euros have accumulated in a [Riesterversicherung]. According to the contract, 100% of the amount could be withdrawn and invested in the acquisition of home ownership. I am aware that this would be a loss overall due to the fees already paid, and I have also already informed myself about the detrimental use of [Riester] capital.

Now my question: Can I also use the money to increase or partially replace the existing equity for financing, so that there are somewhat more reserves available for possible additional costs or nicer things? If yes, would the loan agreement, in which a higher amount was set as equity, be sufficient as proof for the subsidies office? Has anyone already had experience with this?

Best regards

I do not understand the question.

The withdrawal of Riester capital for the acquisition of owner-occupied residential property should basically be harmless with all disadvantages (Wohnförderkonto).

You only need to prove how the funds have been used. A reasonable mortgage advisor should be able to manage this and represent it accordingly in an appropriate manner as equity (if necessary, also with a time delay).

I see three options: 1. Do not touch the Riester contract, everything remains as it is. 2. Cancel the contract, subsidies are lost, fees are written off, an amount X goes into your account for free use. 3. Conversion into Wohnriester. Subsidies remain, the capital is used to buy/build owner-occupied property. The catch comes at retirement. I recommend option 1, especially because of the rather modest amount in the contract. It should not have a decisive influence on the real estate financing. About 2 years ago I asked myself the same questions ... ;-)

You just have to prove how the funds have been used. A reasonable mortgage advisor should be able to manage that, presenting it accordingly as equity (if necessary, also deferred).[ /QUOTE]

Thanks, that’s roughly the answer I was hoping for. Then I’ll look for someone who is willing to manage all of this.

[QUOTE="Bieber0815, post: 122427, member: 22729"] The catch comes at retirement.

I am aware of that. However, I assume that I can pay the amount in one lump sum with the 30% deduction then.

If I understood correctly, the conversion into Wohnriester you mentioned in point 3 is not necessary. I had thought it would be like this: the insurance is cancelled and the capital saved so far including the subsidies (after all, this is not a detrimental use) flows into the equity portion. In the future, the subsidies (there are two children) could flow directly into the special repayment.

But as I said, I probably really can’t avoid consulting a mortgage advisor here.

Best regards

I thought it like this: the insurance is canceled and the capital accumulated so far including the subsidies (after all, it is not a harmful use) flows into the own contribution.

IMHO this is Wohnriester. If it is not supposed to be Wohnriester, then you have to repay the subsidies. Better ask someone who knows about this ;-).