- Bavarian loan for homebuilders extended
The deadline for the so-called Bayern Loan for homeowners has been extended until the end of August. "Unlike the traffic light government in Berlin, we are not ending our support with the Bayern Loan overnight, but due to its great success, we are adding an additional 30 million euros and extending the program until the end of the month," said Bavarian Minister of Housing Christian Bernreiter (CSU) in Munich.
The Bayern Loan is available to all households in Bavaria that are building, altering, or expanding a family home for self-use or purchasing an existing one and meet the income limits for social housing. For example, the income limit for a four-person household with two children is approximately 101,400 euros gross per year. The loan amount is limited to one-third of the eligible total costs. Three repayment terms are offered: 10, 15, and 30 years.
An advantage of the subsidized loan is the interest rate. This is subsidized by up to three percentage points compared to the market interest rate, with a minimum interest rate of one percent. The current interest rates are 1.0 percent for a 10- or 15-year term and 1.20 percent for a 30-year term. Applications for the Bayern Loan can still be submitted until the end of the month at the district offices or independent cities.
Bernreiter: Bayern Loan is well-received
More than 3,000 families have realized their dream of owning a home with the loan since last year, according to the Ministry of Housing. "I am pleased that our Bayern Loan is being so well-received and that many families are benefiting from it. Our goal from the start was also to help the construction industry during a weak phase," said Bernreiter. Around 90 million euros were initially budgeted for the interest-subsidized Bayern Loan this year.
The Free State has brought more than 500 million euros in loans to the market this way. "Last year alone, we supported around 1,250 owner-occupied homes with a loan volume of around 157 million euros," Bernreiter emphasized. "This year, from January to July, it was already over 1,800 owner-occupied homes."
Even after the time-limited Bayern Loan, households with low and middle incomes can continue to receive financial support through the owner-occupied housing subsidy. The subsidy includes a low-interest loan of up to 40 percent of the eligible costs for existing properties, as well as additional grants of 7,500 euros per child and a maximum of 50,000 euros for the purchase of existing housing.
The success of the Bayern Loan has led to an increase in social policy, with an additional 30 million euros being allocated to the program. The continuing support for homeowners through the extension of the Bayern Loan until the end of August aligns with the government's commitment to affordable housing and social policy.
