From 3 August 2026, extended funding conditions for the federal programme "Jung kauft Alt" (Young Buys Old) will come into force. This new regulation aims to enable low- and middle-income families to acquire owner-occupied housing in existing stock and simultaneously promote energy-efficient modernisations. Support is provided through interest-subsidised KfW loans, which subsidise the purchase of existing buildings with energy efficiency classes F, G, or H.
The programme aims to facilitate access to home ownership for families and to optimise the use of the existing building stock. Federal Minister of Housing, Urban Development and Building, Verena Hubertz, commented that "Jung kauft Alt" brings existing stock into focus. Every house has an individual history, and conversions vary. For renovations, this requires flexible solutions instead of a rigid scheme. The adjustments are intended to grant more freedom of choice for energy efficiency measures, relieve families during conversions, and contribute to climate efficiency. In addition, beneficiaries will benefit from higher loan amounts in the future.
Comprehensive modifications to funding practice
A significant change concerns the increase in maximum loan amounts. Families can receive up to EUR 140,000, EUR 160,000, or EUR 180,000, depending on the number of children. Previously, the maximum sums were EUR 100,000, EUR 125,000, and EUR 150,000 respectively. An example illustrates that a family with two children can receive a loan of EUR 160,000 at an interest rate of 0.53 percent per year over a 35-year term with a ten-year fixed interest rate. This interest rate is significantly below current conditions for comparable commercial bank loans. The calculated saving compared to a regular commercial bank loan amounts to approximately EUR 34,000 under normal loan progression; before the increase in maximum amounts, it would have been approximately EUR 26,500.
In addition, flexibility in renovation is significantly increased. The previous requirement to renovate the entire house to the level of an Efficiency House 85 EE is no longer applicable. Families can now choose whether to renovate the entire building or implement energy-efficient individual measures step-by-step. These individual measures include replacing the heating system, insulating the roof or top floor ceiling, replacing windows, and insulating external walls.
- —Proof for energy-efficient individual measures can be provided by a specialist contractor's declaration, meaning that an energy efficiency expert does not necessarily have to be commissioned in every case. This can save time and costs.
- —The energy-efficient individual measures must meet the minimum standard of the Federal Funding for Efficient Buildings – Individual Measures (BEG-EM) to ensure effective energy improvement of the building stock.
- —Exceptions are provided for structural components or heating systems already at an appropriate energy level. These do not have to be renovated again to avoid unnecessary replacement measures.
Complementary funds for the energy-efficient renovation of existing properties can be applied for via the "Bundesförderung für effiziente Gebäude" (BEG). These measures underscore the effort to facilitate access to home ownership for families on the one hand, and to substantially upgrade the energy efficiency of the building stock on the other.
