In the course of the adoption of the homeowners’ pension law, future homeowners can incorporate their Riester supplements directly into the repayment of a residential RS Loan already offered by some banks. These are exclusively annuity loans, which instead of a home loan savings contract and in combination with state subsidies is an attractive alternative to other forms of financing.
Consider long savings period
Future builders and owners of residential property must therefore no longer wait for the allocation of Bausparsummen or consider long savings periods, but can use one of several offers under the old-age pension contract certification Act (AltZertG) to the flow of all Riester allowances (including those for children) either to limit the repayment installments to the allowance or else to reduce the repayment period by means of corresponding additional own contribution and thus save money in the form of lower interest charges. Many banks continue to offer a special repayment right, which corresponds to the maximum amount of eligible contributions to private pensions. However, it must be ensured that this is the construction or purchase of owner-occupied real estate, this is also the (future) main residence and the repayment plan provides for debt relief at the latest by the 68th year of the borrower. In addition, the property may not have been acquired until after 2007.
From the point of view of taxation
Resident RS Loans are also subject to taxation in the form of tax relief during the repayment phase. In detail, this means that allowances and capital repayments are recorded on a notional housing subsidy account and earn interest at a rate of 2% per annum. As soon as retirement is started, the amounts in the account are taxed. You can choose between two options: You pay regular taxes up to the 85th year of life or you repay the tax debt in one fell swoop and receive a discount of 30%.