Reconstruction Loan Corporation is the largest development bank in the world as a public-law institution. The third largest in Germany is by total assets. Bank Bankengruppe includes DEG, Bank IPEX-Bank and FuB. The Federal Ministry of Finance is responsible for legal supervision .
Requirements for borrowing
In real estate, the conditions depend on whether it is a new construction project or the acquisition of an existing property. Renovations and conversions are also subject to other criteria. Often, opinions are required by an appraiser .
Bank is the parent company responsible for the realization of public contracts for financial security.
What is subsidized domestically
First, here are the middle class and the entrepreneur level with your individual needs for support. In second place are the areas of construction, energy saving and living. Not only the creation of residential property but also the areas of modernization of existing living space, the energetic refurbishment of buildings and the construction of photovoltaic installations are part of Bank’s support program. The financing of the municipal infrastructure (including municipal housing) and the financing of training and global loans follow immediately.
With regard to economic reconstruction in the new federal states, Bank is responsible for implementing such programs. A special area is the public funding of films.
Which areas receive international funding
Here are the export and project financing as well as development cooperation. Educational loans, which are used to help with development in developing countries, are also part of Bank’s portfolio.
Financing options in the real estate sector
A credited promotion in the real estate sector is possible for one-, two-, three- and multi-family houses, for example for energy measures. Even the semi-detached house or the condominium fall under accepted measures under the eligibility. The same applies to properties.
The interest and repayment options of a Bank loan
Bank loans for, for example, an energy renovation are extremely low interest rates. Under certain conditions, however, a subsidy of up to 12.5% may be granted, depending on a subsidy level.
Since 2011, a Bank loan can be taken out as a term loan. Only the interest will be due during the entire term. The actual debt is paid at the end of the term. The term of this loan must be at least 4 years and must not exceed 8 years. The 8-year term is linked to a fixed interest rate for the entire term.
Interest rate retainer should be used, especially at times of extremely low interest rates, because over the course of time an increase in interest rates can be expected. Follow-on financing can be taken out for the loan amount outstanding after expiry of the fixed interest period. With a small residual debt, the variable loan is an alternative. The most common fixed interest period is 10 years. But there are possible maturities between 5 and 25 years.
It should be noted that the interest rate applied to a loan may differ from the effective interest rate. An increase in relation to the discount rate of the bank is possible depending on the selected fixed interest period.
The Cap loan is also available for financing and the Forward loans are available for follow-up financing.
Non-binding calculation example
Credit program: Bank Efficiency House 55 / Passive House 153
Desired loan amount: 100,000.00 Euro
Disbursed amount: 100,000.00 Euro
Redemption subsidy: 5.000,00 Euro
Running time: 10 years
Redemption-free start-up years: 10 years
Fixed interest: 10 years
Debit interest pa: 0.75%
Initial repayment rate: 0.00%
Effective interest pa for the duration of fixed interest: 0.22%
Frequency of payments: monthly
Redemption-free start-up years
MONTH RECYCLING INTEREST ANNUITY RESULT
1 – 12 62.50 62.50 62.50 100,000.00
13 – 120 0.00 59.38 59.38 95.000,00
Subtotal 0.00 7.163,04 7.163,04 95.000,00