KfW loans: How to save money on your German mortgage in 2024 💰🇩🇪

[@Hypofriend]

Which topics do you want us to cover next? 🤔🙌

[@rheafernandes8312]

Hi, thanks for this! Can you please share a video on the best way to save/invest money for a deposit in Germany? Something equivalent to the First Time Buyer scheme in the UK or an ISA?

[@jayshko]

Why would anyone go for these loans now when private banks offer much lower interest rates?

[@Hypofriend]

Hey! Indeed private banks have (thankfully) lowered their interests quite a bit since their peak in November. However, KFW loans can still be an interesting and important factor for a clients mortgage, depending on the individual situation. Especially if you meet their criteria for energy efficiency or if you don't have a lot of equity and need to finance a high % of the purchase price the substitution from KFW can be very attractive and in most cases lead to a better offer overall. At Hypofriend, all of our advisors will check if you meet their criteria and if you are eligible for a KFW subsidized mortgage and if it makes sense in your personal situation.

[@КирилоК-щ4ф]

Cons of KFW 300 That there are close to none houses with coefficient 40 being built for normal human being (Income 100K or less)

[@Hypofriend]

Hi!. Thank you for your message. Let us answer in 2 steps here. The first is the requirement for 100k income, as this is often misunderstood. The income that's taken into account is the "taxable" income, not the normal gross income. If you do a tax declaration there are multiple things that you are allowed to deduct from your gross salary (f.e. insurance, pension payments, additional household costs, rides to employment or the free tax amount for kids), lowering your final "taxable" income. That means that the real gross income can be higher than the limit mentioned in the program and you should take a look at your last tax statements to see if you qualify. Also, for each kid the income limit increases by 10k. Regarding the second problem. Indeed the shortage of sufficient properties at a reasonable price is a problem known for a while already and part of the general "housing crisis" in Germany which leads to higher rents and prices. With programs like this (and the stoppage of programs for lesser energy-efficient buildings) the government tries to make sure more and more of these properties will be built, but so far it was not successful due to long planning and permit times as well as currently high building costs. However, more and more new builds switch to this standard and buying a house on your own allows you to reach the requirements at a cost that is still manageable if that is an option.

[@rheafernandes8312]

Hi, thanks for this! Can you please share a video on the best way to save/invest money for a deposit in Germany? Something equivalent to the First Time Buyer scheme in the UK or an ISA?

[@Hypofriend]

Thank you for the suggestion!

[@posthumic]

Great info! Small tip for higher video quality, please speak up more, and project the voice, the volume is very low and words are not clear... Great content otherwise..

[@Hypofriend]

Thank you for the feedback! Glad you liked the video 🙌