What is KfW and Why Does It Matter?
The Kreditanstalt fur Wiederaufbau (KfW) is Germany's state-owned development bank. It offers low-interest loans and grants for construction projects, energy-efficient renovations, and property purchases. In 2026, several attractive programs are available that can significantly support your building project.
Important: Limited Budgets
KfW programs have limited budgets. The program 297/298 for climate-friendly new construction has a budget of 1.1 billion Euros in 2026. Apply early to secure your funding!
Climate-Friendly New Construction
For building energy-efficient residential buildings according to Effizienzhaus 55 (EH55) or Effizienzhaus 40 with sustainability certificate (EH40+QNG) standards.
EH55 Standard
- Up to 100,000 Euro loan
- Interest rate from 2.31% p.a.
- 10 years fixed interest
EH40 + QNG
- Up to 150,000 Euro loan
- Interest rate from 2.31% p.a.
- With sustainability certificate
Jung kauft Alt (Young Buys Old)
Specifically for young families who want to buy and renovate an older existing property. One of the most attractive programs with extremely low interest rates!
0.01%
Interest rate p.a.
100k-150k
Loan amount Euro
10 yrs
Fixed interest
Requirements: At least one child under 18, household income max. 90,000 Euro (plus 10,000 Euro per additional child), building must need renovation.
Heating Subsidy
Funding for replacing old heating systems with climate-friendly alternatives such as heat pumps, biomass heating, or district heating.
Funding Rates
- Base funding30%
- + Income bonus (income under 40,000 Euro)+30%
- + Speed bonus (quick replacement)+20%
- Maximum fundingUp to 70%
The funding is paid as a direct grant - no repayment required!
Step-by-Step: How to Apply for KfW Funding
Choose Your Funding Program
Check which program fits your project: New construction (297/298), home purchase (308), or heating replacement (458).
Engage an Energy Consultant
For most programs, you need a certified energy consultant (Energieeffizienz-Experte). They confirm the technical requirements.
Contact Your Bank or Broker
KfW loans are not applied for directly at KfW, but through your German bank or a mortgage broker.
Apply BEFORE Construction Starts
Important: The application must be submitted and confirmed BEFORE you start construction or sign the purchase contract!
Warning: Starting construction early will void your funding claim!
Wait for Approval and Start
After receiving written approval, you can begin your construction project. Disbursement follows according to construction progress.
Overview: All Programs 2026
| Program | Purpose | Amount | Interest |
|---|---|---|---|
| KfW 297/298 | Climate-friendly new build | 100k-150k Euro | from 2.31% |
| KfW 308 | Jung kauft Alt | 100k-150k Euro | 0.01% |
| KfW 458 | Heating subsidy | Grant | up to 70% grant |
Conclusion
The KfW funding programs 2026 offer significant financial benefits for builders and property buyers. Particularly attractive is the Jung kauft Alt program with nearly interest-free loans. Plan early, engage an energy consultant, and make sure to submit your application BEFORE starting construction. A mortgage comparison helps you find the best combination of KfW funding and bank loan.