Preferential promotion of building society savers
Home savers in particular are encouraged with the home construction bonus. If you have already signed a building society loan agreement, you can hope for government support. Exceptions are, however, savings contracts that are dependent on capital-building services from your employer or that are otherwise subsidized by the state.
FURTHER FUNDING OPPORTUNITIES
You do not necessarily have to make provisions in the form of a savings contract. For example, if you have acquired shares in construction or housing cooperatives or housing and settlement companies, these can be subsidized as expenses.
You calculate the taxable income by subtracting all expenses to be deducted from your gross income. This includes:
- Advertising expenses
- Operating and special expenses
- Pension expenses
- Applicable allowances
GOOD TO KNOW: The income limits refer to the taxable income. It does not mean gross income, but neither does it mean net income. If you have several children, for example, the taxable income can quickly be significantly lower. You can be entitled to apply for the housing subsidy even if your gross income is higher than the income limits mentioned above.
When does the housing premium payment take place?
The housing bonus is paid out annually. However, it is not paid directly to your account. The company or organization with which you have concluded a savings contract or otherwise incur expenses for your building provisions will review your application. If you qualify for the home construction bonus, the payment is earmarked for the next tax year.
GOOD TO KNOW: For the actual payout, it is important that your home construction premium is used as “residential building” provision.
When is the home construction premium used for residential purposes?
It’s a mandatory to use building society savings contracts for residential purposes and thus also house building premiums. If you do not want to lose or repay your home construction premium, it must be used for residential purposes. In this context, it would be useful to build a house, buy a flat, renovate or modernize it.
Preference for building society savers under 25 years of age
There is a rule of 25 age but it varies from country to country;in some states if you are under 25, you can look forward to preferential funding. There are not as strict regulations for its use as for older beneficiaries. If you have built up your home loan and savings contract over 7 years and have received an annual home construction premium, you can use the premium freely after this period has expired.
A residential use is then no longer mandatory. This advantageous regulation only applies to a home loan and savings contract and the related funding. If you claim funding for a building society loan agreement more than once, it is intended to be used for residential purposes. Older home loan and savings contracts before 2009 are subject to different regulations. If you signed a home loan and savings contract before 2009, the same rules apply to you as to those under 25. In this case, no residential use is generally necessary.
In addition, you would not lose your home building premium with these home loan and savings contracts if you terminated the contract early.
WHAT SHOULD YOU WATCH OUT FOR? – TIPS ON THE HOME CONSTRUCTION PREMIUM
- A retrospective application for a housing subsidy is possible: You can also apply for the housing subsidy retrospectively. However, only savings payments that are a maximum of two years in the past are funded.
- There is a blocking period for funding home loan and savings contracts: even if the payment is made annually, you may only use the home construction premium after your home loan and savings contract has expired, i.e. usually after 7 years. If you use the credit early, you will have to repay the money.
The housing premium should not have any influence on the financing decision .
