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Housing premium: How to avoid repayments
Housing premium: How to avoid repayments
Video: Housing premium: How to avoid repayments
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The housing construction premium is a state subsidy for building society contracts. If you are not careful, you will lose the grant. We explain what you have to look out for so as not to risk the valuable funding.

Table of contents Table of contents Repay housing construction premium? This way you avoid the loss of premiums

  • When is the housing premium granted?
  • In which cases do you have to pay back the housing premium?
  • Repay the housing premium: Special case for young savers

Table of contents Table of contents Repay housing construction premium? This way you avoid the loss of premiums

  • When is the housing premium granted?
  • In which cases do you have to pay back the housing premium?
  • Repay the housing premium: Special case for young savers

If you have to pay back your housing premium, you will quickly be missing several hundred euros that were actually intended for the purchase, construction or renovation of a home. Since every euro counts, particularly when it comes to real estate, this loss can hurt considerably. But it doesn't have to be - if you follow a few rules.

When is the housing premium granted?

The housing premium is a grant from the state, which is granted year after year only under certain conditions. On the one hand, an application for a housing premium must be made, and on the other hand, certain income limits for the housing premium must not be exceeded.

If these requirements are met, the state pays the premium into the applicant's building society savings account every year. The amount of the housing construction premium is calculated individually and depends, among other things, on the annual savings amount of the home saver.

In which cases do you have to pay back the housing premium?

The housing construction premium is - after the corresponding application has been made - initially booked to the applicant's account with the building society, so the building society savers cannot dispose of the money at will. If he has the home savings sum paid out as planned after at least seven years of the home savings contract term, the so-called "lock-up period", in order to use the money to buy a house, for example, he will receive the funding amount in addition to the money saved.

In these cases, however, he has to repay the housing premium:

  • No residential use of the money

    The housing construction bonus is earmarked, which means that it can only be used for so-called residential purposes, such as the purchase of a property, its acquisition or renovation. If such a use cannot be proven, the funding will flow back to the state.

  • Lending or assignment of the building society contract

    The housing premium is also to be repaid if claims from the savings contract are lent or assigned - for example, if you give away or transfer the home savings contract to a relative.

  • Termination of the building society contract before the end of seven years

    If the home savings contract is paid out in full or in part before the expiry of the vesting period, i.e. before a term of at least seven years has been completed, the home saver must also repay the home construction premium. In this case, one speaks of the early decision, which results in the loss of the housing premium.

Under certain conditions, an early decision does not affect the housing premium. In these four cases, the building society savers may keep the funding, even though the building society contract was terminated before the lock-up period expired:

  • Immediate residential use

    If the home saver can have the saved money paid out prematurely so that it can be used immediately and immediately for residential purposes, he does not have to pay back the home construction premium.

  • Residential use by third parties

    If the home saver has to cede his savings contract, he can only save the housing construction premium if the purchaser of the home savings contract immediately and directly uses the money accumulated in it for the relinquishing saver or his relatives in accordance with Section 15 of the Tax Code.

  • Death

    Even if the home saver or his spouse or life partner who is not permanently separated from him has died after the home savings contract has been concluded, the home construction premium does not have to be repaid.

  • unemployment

    If the home saver loses his job, he is subsequently unemployed without interruption for at least one year and even if the early decision is made, the entitlement to the subsidy continues. He can then terminate the home savings contract early and does not have to pay back the housing premium.

Repay the housing premium: Special case for young savers

Young people who conclude the building society contract under the age of 25 enjoy a special position with the building society: they can also use the money from the building society contract for non-residential purposes. If you have applied for a housing premium, you will not lose it yourself. You do not have to pay back the premium received even if the money is not used for residential purposes.

Nadine Kleber

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