Germany’s KfW grants low-interest loans and subsidies for new builds, purchases, renovation and heating. Which programmes run in 2026, who gets them and how to apply before signing a contract.
In short
- Home ownership for families (300): up to €270,000 of credit from around 1 percent for families with a child and income up to €90,000 plus €10,000 per additional child.
- Climate-friendly new build (297/298): up to €150,000 per unit at a reduced rate.
- Heating subsidy (458): 30 percent basic subsidy, up to 70 percent with bonuses, at most €21,000.
- Rule number one: apply before signing the contract, otherwise no funding.
How KfW works
The Kreditanstalt für Wiederaufbau is the federal development bank. It does not lend directly but through your house bank, which files the application and shares the liability. Grants you apply for yourself in the KfW portal. The programmes have numbers, budgets and conditions that change annually; in 2026 the following are active.
Home ownership for families (programme 300)
For families with at least one child under 18 and a taxable income up to €90,000, plus €10,000 per additional child. Funded is the new build or first purchase of a climate-friendly home with Efficiency House 40 standard. Loan amount €170,000 to €270,000 depending on the number of children, rate well below market, around one percent in 2026 with a ten-year fix. At €220,000 and 2.5 points of rate advantage that is €5,500 of savings a year.
Climate-friendly new build (297 and 298)
For everyone without an income limit: up to €100,000 per unit for Efficiency House 40, up to €150,000 with the QNG sustainability seal. Reduced rate, no more repayment grants. Developers often apply for the whole project; buyers benefit via the price.
Renovation (261 and grant 458)
Whoever renovates an existing building to an efficiency house gets up to €150,000 of credit per unit with a repayment grant of 5 to 45 percent depending on standard. For individual measures such as insulation, windows and doors there is a 15 percent grant via BAFA, plus 5 percent with an individual renovation roadmap. The heating subsidy (458) has run through KfW since 2024: 30 percent basic subsidy for a heat pump, pellet heating or district heating connection, plus a 20 percent speed bonus until 2028 for replacing old oil and gas boilers, plus a 30 percent income bonus below €40,000 of taxable household income, plus 5 percent for heat pumps with natural refrigerant. At most 70 percent of €30,000 of eligible costs, so €21,000. Plus a supplementary loan up to €120,000.
Age-appropriate conversion (159)
Up to €50,000 of credit for reducing barriers and burglary protection, regardless of age. The grant variant only when budget is available.
The application
Always before signing the construction, purchase or tradesman contract. For efficiency house programmes you need an energy efficiency expert from the German Energy Agency list, whose costs are half subsidised. For heating the specialist contractor suffices. After approval you have up to 36 months to implement, then you submit the confirmation of completion. Whoever forgets the application and signs the contract first gets nothing, and that is the most common mistake.
Combinations
KfW loans combine with state programmes, such as NRW.Bank, L-Bank or the Bavarian state building loan institute, with Wohn-Riester and with the tax subsidy for energy renovation, which deducts 20 percent of costs over three years from tax, but not in addition to the grant for the same measure.
Try it yourself
Subsidy FinderSix questions on life situation, income, housing and plans: which German subsidies you are entitled to in 2026.Mortgage CalculatorPrice, federal state, equity, rate and repayment: monthly payment, closing costs and remaining debt after the fixed-rate period.Frequently asked questions
Do I get KfW loans without a house bank?
No, loans run through a bank that files the application. Grants such as the heating subsidy you apply for directly in the KfW portal.
Can I combine KfW and a bank loan?
Yes, that is the normal case. The KfW share lowers the average rate of the whole financing.
Is there funding for buying an existing property?
Only for the renovation after purchase, via programmes 261 and 458, and via the programme Jung kauft Alt for families with a renovation obligation.
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