96 million euros in home ownership subsidies for more than 830 households with limited income have already been approved in Saxony this year. A total of 135 million euros will be available from the housing promotion fund in 2024, as announced by the Ministry for Regional Development. This is therefore a record amount. The Sächsische Aufbaubank is currently reviewing a good 200 applications worth almost 21 million euros.
An additional 18 million euros are still available this year. According to the information, around 180 more families with limited incomes could benefit from this. Applications for funding from the two state programs "Family Housing" and "Rural Home Ownership" can be submitted until the end of the year.
"Saxony's home ownership funding enables more families to take the plunge into their own home," said Regional Development Minister Thomas Schmidt according to the press release. In view of increased construction costs, interest rates and the renovation obligations associated with the purchase of old buildings, the subsidized loans are all the more important. The interest rate will be kept well below the standard market rate over the entire term of the loan.
Almost 80 percent of the projects approved so far this year will be used to build and renovate existing homes. The rest of the approved funds are earmarked for new build properties.
The Free State is using the funding programmes to support the creation and modernization of owner-occupied residential property. Promotional loans are approved with a promotional interest rate of currently 0.95 percent per year. The maximum loan term is 25 years. The subsidy is only available to those who cannot finance the project with their own assets and who live in the property themselves. Income limits also apply.
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