With the family loan, MünchenerHyp intends to make everyday life at home with at least one child easier. Alfons Stöberl, head of retail banking at Raiffeisenbank Kempten-Oberallgäu eG, answers questions on the advantages of the family loan and how to get it

Mr Stöberl, who does MünchenerHyp’s family loan apply to?

The offer is aimed at couples or single parents with at least one child who is eligible to receive child allowance. The loan can be used to purchase, construct, modernise or refurbish a property - or simply as follow-up financing.

So it is basically a normal building loan…

Yes in some ways – but not entirely. There are a few criteria that must be met to get the family loan and reap the benefits. For example, the person taking out the family loan must the one living in the property. Net household income must not exceed EUR 40,000 per year, whereby an extra EUR 5,000 can be added on for the second and each additional child. Everybody that has children knows that it comes with financial challenges. And that's why we are pleased to help as many families as possible who have children to build assets through home ownership.

The family loan should therefore enable families with children and low or middle incomes to buy and have property. How is that being achieved?

The loan offers the families discounted interest rates. This attractive interest rate can be fixed for 30 years or even up to the entire term - and can be used for the entire financing. That is pretty unique. We also offer flexible repayment if the needs of the family change.

What actually happens if the household income exceeds the limit during the term of the loan?

Fortunately nothing happens, because the income threshold only has to be complied with at the time the family loan is taken out. So nobody should be afraid of a salary increase. This is especially important for young families if the parents are at the start of their career and will earn more later on.

How is the family loan received with customers at your bank?

We are satisfied with the demand. It shows that there is a need for such services. The loan also fits in very well with our services in private property financing.