Residential Riester
the Homeowner’s pension, also residential Riester called, you can use if you are planning to buy or build a property that you want to move into yourself. Even if you already own a property but still have a loan, you can use Wohnriester.
With this Riester variant, the overarching goal is rent-free living in retirement age. If you opt for the home ownership pension, a home savings contract including state Riester subsidy is usually first concluded and saved in order to later receive a low-interest and Riester-subsidized loan. With Wohnriester you have several options, for example the purchase, debt relief or the age-appropriate conversion of an owner-occupied property.
The advantages: You have paid off a Riester-subsidized loan more quickly because the allowances flow into the loan as a special repayment. This means you can live rent-free in your apartment or house faster. Another advantage is the interest guarantee due to the early fixed interest rate in the building society loan – this provides planning security.
The disadvantages: The homeowner’s pension must also be taxed at retirement age. This works via a so-called housing subsidy account. In a way, this is a fictitious account that is used to calculate your tax burden. In addition, a loan with a Riester link must be paid off in full by the time you retire, so that you have a high monthly burden in individual cases or a one-off, high transfer fee. If the home savings loan is also saved but not used, the pure interest on the credit balance is lower than with some alternative state-subsidized savings options.
Tip: If you are planning a construction or purchase project, compare different offers yourself or get advice from an expert, for example a construction financing specialist.
Our recommendation: If Wohnriester is an option for you, you can get advice from various building societies, for example the Landesbausparkasse and Schwäbisch Hall* various Riester compatible products.
Extra tip: If you want to use the variant of the WohnRiester, you can also use a mortgage broker such as Interhyp, dr Small* or visit PlanetHome. With just one appointment you will receive the offers from different banks.