New funding for family home ownership

Then you should know better. Or rather, I phrased it incorrectly: people from the industry who know their stuff ... and not just work there. No one will build or not build because of 20k or 30k.

On a large scale? No. On a small scale? Yes, such subsidies with a few hundred euros of monthly savings can be the gamechanger. And this subsidy is aimed at such clientele.

The creation of living space is anyway the responsibility of the professional developer/asset holder. And yes, they have actually waited for the new subsidies 297/298. On the first day alone, when the funds were reopened, we applied for a three-digit million amount at KfW for our customers.

However, the subsidy will not solve the misery. That is probably true. And that’s why not much will be built this year either. Building permits are at a 10-year low. There are enough proposals on how to build more cheaply. But that costs money (for the state, the federal states, the residents). And lots of money. And even more, bureaucracy stands in the way of construction. We have some customers who wanted to carry out large projects with several hundred apartments each - but because the municipalities once again were never satisfied and increased the share of subsidized and price-controlled housing during the creation of building rights from 30% to 50%, there are still wastelands instead of cranes turning. Just a small example.

Oh yes, where did you get your expertise from? Construction entrepreneur, project developer, fund manager, property developer, asset holder, or what is your job that you have such profound knowledge from the industry?

No. We are miles away from that. For the 300 program, there is a fund of €350 million. That is the interest subsidy, not the commitment volume. You can roughly calculate yourself how high the loan volume can be with that. There is still room. P.S. Applies also for 297/298

I was referring to the programs 297/298. With the flood of applications in the last few days, I can’t imagine that the €762 million will last long. How do you explain KFW’s behavior regarding the interest rates that have risen in such a short time? The market interest rate has been relatively stable since the beginning of the year.

Today there was another interest rate change in programs 297 and 300. In program 297, the conditions have been worsened again, while in 300 they have been slightly improved.

I still fear that the funding pool for program 297 will be empty in the foreseeable future

Today there was another interest rate change in programs 297 and 300. The conditions in program 297 have been worsened repeatedly, while in 300 they have slightly improved.

Adjustments happen very frequently depending on developments in the capital markets. The deterioration results from an increase in rates in the 10-year range a few days ago. Now we are again currently 0.10% down. It may be that you will get another downward adjustment at the beginning of next week.

How do you explain the behavior of KfW regarding the interest rates rising in such a short time? The market interest rate has been relatively stable since the beginning of the year.

Tendentially up by about 0.15-0.20% since the beginning of the year. Explanations for KfW’s policy? A politically predetermined spread between market interest rate and KfW interest rate to manage the subsidy volume throughout the year.

I was referring to programs 297/298. With the flood of applications over the last days, I can’t imagine that the 762 million will last long.

They will last quite a long time. With 762 million, you can subsidize loans worth tens of billions. If you take a €100,000 loan with a spread of 1% between KfW and market loan, the KfW subsidizes only €1,000 in year 1 (maybe €8,000 over 10 years). That amounts to 95,000 apartments/houses.
Of course, this calculation is very rough, but with about 175,000 new apartments/houses for 2024, there is still a lot of room left in the fund.

They last quite a long time. With 762 million you can subsidize tens of billions in loans. If you take a loan of T€ 100 with a spread of 1% between KfW and market loans, then KfW subsidizes just €1,000 in year 1 (maybe T€ 8 over 10 years). You then get to 95,000 apartments/houses. Sure, that's a very rough calculation, but with about 175,000 new apartments/houses for 2024, there is still plenty of room in the fund.

Well summarized. That’s the point many confuse. KfW subsidizes the interest discount with the fund, and the loan doesn’t simply disappear 1:1 from the subsidy fund.

Hello everyone,

how does it actually work if the QNG Plus value of 24 in the KFW300 is not reached upon completion of the construction, for whatever reason? Back then, simply less subsidy was granted if you achieved 55 instead of KFW40, but now there is no longer any gradation. Do you then not get the loan after all or how is that supposed to work? Thank you.