State Subsidies for Fresh Constructions with an Eco-Friendly Profile: KfW 296, 297, and 298
The KfW 297 and KfW 298 programs are designed to support climate-friendly new constructions, offering financial aid for self-use and investor residential buildings. Here's a breakdown of what these programs entail.
Eligibility and Requirements
The programs primarily target new residential buildings, with KfW 297 focusing on owner-occupied homes and KfW 298 catering to other residential buildings. To be eligible, the financed project must meet the KfW Efficiency House 40 standard, a high energy-efficiency benchmark. Houses that only meet Efficiency House 55 or higher do not qualify for funding under these programs.
Up to 100% of eligible construction or purchase costs can be financed, with a maximum loan amount of €100,000. If the new building also meets the criteria for the "Quality Seal Sustainable Building" (Nachhaltigkeitssiegel), the maximum financing can increase up to €150,000. Eligible costs include all construction-related expenses, professional planning costs, lifecycle analyses by an energy efficiency expert, and certification for the sustainability seal.
Loan Terms and Repayment
The KfW 297 and KfW 298 programs offer loan terms of up to 35 years, with interest rates ranging from 2.23% to 2.93%. For KfW 297, a final maturity loan offers a loan term of up to 10 years with an interest rate of 2.98%. You can choose to receive the credit amount in a single sum or in partial installments within 12 months after approval, and from the 13th month, KfW will charge a standby provision.
The KfW 297/298 program offers an annuity loan and a final maturity loan. Early repayment of the outstanding loan amount during the loan term is possible at any time, but KfW will charge an early repayment compensation.
Additional Considerations
The KfW 297 program does not support refinancing existing credits, additional financing for already begun projects, or purchasing land. The KfW 296 program, on the other hand, supports energy-efficient and space-efficient residential buildings in the lower and middle price segments with up to 100,000 € per residential unit. There are no income limits or other restrictions for the KfW 297 program.
Some promotions can be combined with program 297, such as the residential ownership program 124 and the renewable energy program 270. To receive the KfW promotion for climate-friendly new construction, you need to commission specialists for energy efficiency and sustainability.
Before you issue the first order to a construction company, your construction financing should be in place. The construction and purchase, planning and construction guidance, and sustainability certification are supported under the KfW 297/298 program.
Once you have received the approvals from KfW, you can plan with the promotional funds. With these programs, you can contribute to a more sustainable future while enjoying financial benefits.
[1] For more information on the "Quality Seal Sustainable Building" (Nachhaltigkeitssiegel), please consult the relevant authorities or organisations.
- Investing in a self-owned home that meets high energy-efficiency standards can be financed up to 100% through the KfW 297 program, although this might increase to €150,000 if the building also gains the "Quality Seal Sustainable Building" (Nachhaltigkeitssiegel).
- The personal-finance benefits of the KfW 297 program extend to other residential buildings, with KfW 298 providing financial aid, but only for projects that meet the KfW Efficiency House 40 standard.
- To support career development in education and self-development, these programs offer training in energy efficiency and sustainability expertise, which are necessary to receive KfW promotions for climate-friendly new constructions.
- For business ventures in real-estate, the KfW 296 program offers financial aid for energy-efficient and space-efficient residential buildings, especially in the lower and middle price segments.
- Skills-training and learning opportunities are not limited to construction-related fields, as you can leverage the funds granted by these programs to gain knowledge in areas like energy efficiency, business, and finance.
