Securing the livelihood of owners
Rising rents are a major financial problem for many people. Homeowners or flat owners in particular often have to reckon with high accommodation costs. To make this easier, the state provides living allowance charge support in accordance with the Housing Benefit Act. This subsidy helps people on low incomes to finance their own four walls. You can find more information on the requirements, how to apply and what benefits are available here.
Basic information on charge support
Living allowance is a state aid. It supports people on low incomes with their housing costs. It is given as a subsidy towards housing costs and is a state subsidy that does not have to be repaid. Half of the money is paid by the federal government and half by the respective federal state.
The living allowance charge support is for owners who own their own home or a condominium. This means that tenants cannot apply for charge support, but can apply for rent support instead. However, the calculation is the same. As an owner, you must live in your own home or condominium in order to receive charge support. You must also pay the costs of the loan and administration yourself.
Definition and purpose of charge support
The living allowance charge support is a type of support that is specifically intended for owners of houses or flats. Unlike rent support, which goes to tenants, this grant helps to reduce the cost of owning a property.
The aim of this state subsidy is to help people on lower incomes to buy and live in their own house or flat. In this way, the living allowance charge support helps to secure a livelihood and enables the "dream of home ownership" despite a low income.
The subsidy is also intended to help ensure equal opportunities on the housing market. With this financial relief, families and individuals can lead a good life and keep their own home even with high housing costs.
Differences between rent support and charge support
Living allowances can be divided into two groups: The rent support for tenants and the charge support for owners. Both types of living allowance have the same goal. They help people to pay their housing costs. However, there are some important differences.
One major difference is which costs are subsidised. The rent support helps to pay part of the monthly rent. The charge support, on the other hand, takes into account the costs of servicing the debt (interest on a loan) and the running costs of the home or condominium (such as property tax and insurance). This is why the charge support is usually higher than the rent support.
Requirements for the application
Not every owner automatically receives the living allowance charge support. In order to receive this transfer payment, certain conditions must be met.
Decisive factors for approval are income, the number of people in the household and the amount of the burden, such as the monthly loan instalment. However, the calculation is very complex, which is why we recommend using a housing benefit calculator.
Note: Unlike citizens allowance, living space has no influence on the housing allowance.
Understanding income limits
The income limits for living allowance charge support depend on the size of the household and where you live. As a general rule, if the total income of a household is lower, the chance of receiving living allowance is higher.
When calculating the total income, all income of the people in the household is taken into account. This includes wages, salaries, pensions and also money from investments or rental income.
You can use a living allowance calculator to see whether you meet the income limit for the living allowance charge support. Do you still need to apply for living allowance? With our housing allowance calculator from LeistungsLotse, you can quickly and easily check whether and how much living allowance you are entitled to. Check now!
The application process
In order to receive living allowance charge support, a written application must be submitted to the relevant housing allowance authority. The application can usually be submitted in person, by post or online.
It can take several weeks to process the application. It is recommended to submit the application in good time to avoid financial bottlenecks and to avoid losing a month. Payment is made retroactively from the date of application.
Documents required for the application
In order to process the application for living allowance charge support, the housing benefit authority requires various documents and evidence. These documents help to verify the identity, income, housing situation and ownership of the property.
The required documents are as follows:
Application for charge support
Copy of identity card or passport of all household members (including children)
Proof of income of all household members for the last twelve months or a certificate of income, pension statements or social benefits
Proof of ownership of the property, such as land register extracts or purchase contracts
Proof of the monthly charges for the property, such as loan agreements, interest and amortisation statements, property tax notices or insurance premiums
It is best to collect all relevant documents before submitting them, as the authorities will ask for them anyway. Missing documents and information can lead to delays in processing.
Steps for submitting an application
The application process is usually simple and can be completed in just a few steps.
The following procedure must be followed:
Complete the application form for living allowance charge support. This can either be found online on the website of the city or municipality, at the responsible housing benefit authority or submit the application with LeistungsLotse.
Please fill in the forms completely and correctly and enclose the relevant supporting documents
Submit the application and supporting documents to the housing benefit authority. This can be done in person, by post, via a contact form on the website of the city or municipality or with LeistungsLotse .
