Who is the subsidy for your own home not worth it for?
Last updated: · under the rules from 1 January 2027 · Publisher: INTERNA · responsible: Marc A. Schnitzler, in mortgage financing since 2005
If you want to live in a home you own at some point or are paying off a loan for your own home, the state adds up to €540 a year through the home-ownership pension (Eigenheimrente), and up to €300 per child. The subsidy is less suitable in six cases: if you are not eligible, need the money freely available in the next few years, only want to rent the home out, will certainly never live in a home you own and prefer to invest on the stock market, are planning a loan late in life, or have an old Riester contract with a very small contribution.
Six cases in which you should look more closely
- You are not eligible. Eligible are people who pay into the statutory pension insurance, plus civil servants and, from 2027, self-employed people under 67 who file a tax return for the year. Students without a job usually are not. If your spouse is eligible, you can be subsidised through them with up to €175 a year.
- You need the money for something else in the next few years. If you have the subsidised balance paid out to your current account, you have to pay back the subsidies and tax benefits.
- You only want to rent out the home. Only the home you live in yourself is subsidised.
- You will certainly never live in a home you own and prefer to invest on the stock market. Then another subsidised route such as the pension investment account (Altersvorsorgedepot) may suit you better. INTERNA does not advise on this.
- You are over 60 and still need a loan. A home savings loan must be paid off by your 68th birthday. You can still put the balance including subsidies into the home.
- You have an old Riester contract with a very small contribution. If you have only paid in €60 a year so far, you often get the full subsidy in the old system. A new contract from 2027 brings all old contracts into the new system. What you should check first.
For everyone else
For everyone else: the state pays the subsidy for what you pay in during the respective year. If you put off starting by a year, you leave that year’s subsidy unused. Example: a parent with two children who only starts in 2028 instead of 2027 leaves €750 unused at €25 a month. A couple, both working, with two children at €150 a month each leaves €1,680 unused.
And if you do not buy in the end, you do not lose the subsidy: the balance including subsidies is paid out as a pension in old age.
What you can do today
You can sign a contract from January 2027. With the subsidy check you can see in one minute how much the state adds for your household each year, and register your interest free of charge. An advisor will then contact you.
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
Who is the Eigenheimrente not worth it for?
For people who are not eligible, need the money freely available in the next few years, only want to rent out the home, or will certainly never live in a home they own and prefer to invest on the stock market.
Do I lose the subsidy if I do not buy in the end?
No. The balance including subsidies is paid out as a pension in old age. You only have to pay back the subsidies if you have the balance paid out early for something else.
Can I get the subsidy for a year later?
The subsidy is paid for what you pay in during the respective year. If you start a year later, you get no subsidy for the year you missed.
Read more
Sources
- Federal Ministry of Finance: questions and answers on the reform of private pensions (in German)
- Zentrale Zulagenstelle für Altersvermögen, the central subsidy office: questions and answers (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