What changes in 2027 for the Eigenheimrente?
Last updated: · under the rules from 1 January 2027 · Publisher: INTERNA · responsible: Marc A. Schnitzler, in mortgage financing since 2005
From 1 January 2027 the state pays eligible people much more: up to €540 basic subsidy a year instead of €175 until now, plus up to €300 for each child. For eligible people, the subsidy now depends only on how much you pay in yourself, from as little as €120 a year. The home-ownership pension (Eigenheimrente), until now mostly called Wohn-Riester, is a subsidised pension contract, for example a home savings contract (Bausparvertrag, a savings contract with a building society). You may use its balance for your own home if the contract terms provide for it.
Old and new compared
| until 2026 | from 2027 | |
|---|---|---|
| Basic subsidy | up to €175 a year | up to €540 a year |
| Calculation | full subsidy only if you pay in 4% of the previous year’s income | 50 cents per euro on the first €360, 25 cents per euro up to €1,800 |
| Minimum contribution | €60 | €120 a year |
| Child subsidy | €185 or €300, depending on year of birth | up to €300 per child |
| Starting bonus under 25 | €200 one-off | €200 one-off |
| Eligible | mainly employees and civil servants | also self-employed people without pension insurance who file a tax return, and members of professional pension schemes, in each case under 67 |
What is new for your home
- The balance may be used for buying, building, paying off a loan, energy-saving renovation and alterations to remove barriers in the home you live in yourself, from as little as €3,000.
- The new rules for withdrawals apply from 1 January 2028. If you withdraw in 2027, the old rules still apply.
- Also new: a contract from 2027 no longer has to offer withdrawal for your home. Whether a contract includes it is stated in its terms. Your advisor checks this before you sign.
- The home subsidy account (Wohnförderkonto) records how much subsidised money is in your home. For everything that goes into the home from 2028, it is no longer increased by 2% every year.
What happens to old contracts
Contracts signed before 1 January 2027 keep the previous subsidy until you switch. The switch happens at your request or automatically as soon as you sign a new subsidised contract from 2027. Then the new rules apply to all your contracts, and this cannot be undone. Whether it pays off depends on the individual contract. An advisor clarifies this with you. More about switching.
If you do not buy in the end
You can pause your payments into the contract, transfer it to another subsidised contract or receive the balance as a pension in old age. If, on the other hand, you have the subsidised balance paid out early, for example after cancelling, you have to pay back the subsidies and tax benefits. If you have used the balance for your own home and later sell the home or move out for good, you may have to pay tax on the remaining amount in the home subsidy account all at once. Your advisor explains the deadlines and how to avoid this.
How much subsidy does your household get? The subsidy calculator works out in one minute how much subsidy you can get. An advisor then checks with you whether everything fits your situation. This conversation is free of charge and in English.
Calculate your subsidyFrequently asked questions
When does the new subsidy apply?
For contributions from 1 January 2027. The new rules for withdrawals for your home apply from 1 January 2028.
Is Wohn-Riester now called Eigenheimrente?
Eigenheimrente is the name of the 2008 law that introduced Wohn-Riester. In everyday language most people said Wohn-Riester; today Eigenheimrente is the usual name. What is new from 2027 is the higher and simpler subsidy.
How much does a family get?
A couple, both working and eligible, with two children gets up to €1,680 of subsidies a year if each pays in €150 a month: twice €540 basic subsidy and twice €300 child subsidy.
Read more
Sources
- Federal Ministry of Finance: questions and answers on the reform of private pensions (in German)
- Federal Law Gazette 2026 I No. 156: Altersvorsorgereformgesetz, the pension reform act (in German)
The money in the contract is meant for your retirement and your own home. If you have the subsidised savings paid out early, for example by cancelling the contract, you have to pay back the subsidies and tax benefits.
The examples explain the legal rules in simplified form. They do not replace tax or legal advice for your personal situation. Contract costs and interest are not included. This page was created with the help of artificial intelligence and translated from the German original. INTERNA is responsible for its content. More information