Good Finance is another model of home finance with government funding. Almost 12 million Germans now have a Good Finance contract.
Good Finance was originally intended as an additional pension for retirement benefits, but since 2008 the Good Finance model can also be used as a Good Finance or construction Good Finance. In particular, after the lucrative homeowner allowance ceases to exist, the state offers an additional support measure for all those who purchase residential property.
Good Finance with a smaller loan rate for a building loan
It does not matter whether an object is actually built or bought. In this way, it is even possible to buy shares in a housing association or to have permanent housing in a retirement home.
True to the motto “your own four walls are the best pension scheme”, the contributions can be used for a Good Finance building society contract, as a payment for the loan installment or as debt relief. However, the prerequisite is that the Good Finance savers use the property themselves, even when they retire because if they move abroad, all allowances and tax benefits must be repaid.
Living Good Finance with allowances and government funding
Living Good Finance and how much are the allowances? – How much is your own contribution? The basic allowance since 2008 for every saver: 154 dollars per year, for married people: 308 dollars. Young professionals under the age of 25 receive a one-time bonus of 200 dollars when the contract is signed. In addition, an allowance of 185 dollars per year is paid for each child, provided that they receive child benefit. For children born in 2008 or later, the child allowance is even 300 dollars.
To make full use of these savings bonuses, savers have to contribute four percent of their gross income to their Good Finance pension, with government allowances being deducted. With a gross income of 30,000 dollars, this means 1,200 dollars; the own contribution, minus the basic allowance of 154 dollars, would, therefore, be 1,046 dollars.
The own contribution is tax-deductible up to an amount of 2,100 dollars per year. Otherwise, the motto applies; those who save less receive fewer allowances. In order to be able to take advantage of the various advantages, at least 60 dollars per year must be paid in.
For financing with the help of Good Finance, it is advisable to pay the maximum amount in order to be able to absorb the full amount of state funding.
Good Finance helps with building savings
Instead of paying into a pension account, the allowances and own contributions (for the amount of the allowances see below) are paid directly into a Good Finance building society savings contract. In addition to the government grants, the building society savers also benefit from the interest and possibly from tax relief, since the personal contribution is tax-deductible as a special expense.
But even those who take out a building loan can take advantage of the subsidy to pay off the monthly loan installment with a Good Finance. Since the entire state allowances can be used, Wohn Good Finance reduces the building loan from the start and thus promotes a quicker repayment of the loan.
In addition, the capital saved is included as equity in the financing of a property, so that the monthly burden for the client is reduced. But be careful: Only certified mortgage lenders are allowed to offer such a Good Finance loan agreement.
Debt relief with Good Finance
Upon retirement, the person entitled to the allowance can use the saved capital completely for debt relief on the residential property and not, as before, only take a one-off amount of 30% from the Wohn Good Finance contract.
With the help of the homeownership law, Good Finance has become much more flexible. With the new law, the following withdrawal options and thus also use for your building loan are now available:
Good Finance with a building society contract
Good Finance can now also be realized with a certified building society contract. The contributions to such a certified Good Finance are recognized as a retirement benefit. Good Finance makes sense for everyone who is considering buying or building a property over the next eight years. The build-up of equity with Good Finance and the use of state allowances can be significantly accelerated.
Another and very interesting possibility is offered by the Good Finance through a mortgage repayment. Due to the new legal regulations, there is an option to use the Good Finance building as repayment with government support. This means that you can pay off your home more quickly and you are also debt-free more quickly.
Good Finance withdrawals
The new regulations for withdrawals from a Good Finance building offer completely new perspectives. It is now possible to withdraw 75% or even up to 100% of the capital withdrawn for the use of contract-favored purposes. That means: You can use up to 100% of your construction Good Finance for the repayment of construction loans if this is in Germany and you are a self-owner.
The great thing about Good Finance is that almost everyone benefits from it. Lower-income groups receive funding through state allowances. Higher-income brackets pay higher contributions but receive additional tax benefits. The paid-up capital and the corresponding allowances are 100% secure and make it possible to plan the use for a building loan.