Let’s be real, sustainability might not be the first thing that comes to mind when you’re trying to figure out your mortgage in the Netherlands.
However, it’s a super important factor to consider before agreeing to the terms of your mortgage — and even after!
Why? Because there are a number of ways that you can use your mortgage to help fund sustainable remodelling and renovations on your Dutch home — and in turn, save yourself some money in the long run.
In fact, as of 2024, there are several ways you stand to benefit should you decide to make sustainable changes during or after buying a house in the Netherlands. 🌳
We had a free consultation with Mira Makkinje from the Expat Mortgages advisory team to discuss how exactly hopeful and current homeowners in the Netherlands can benefit from making sustainably changes to their home. Want to find out more about making your house more sustainable? Get in touch!
Sustainable remodelling: a growing trend in the Netherlands
With the issue of climate change at the forefront of many people’s minds — and inflation sending energy prices through the roof over the past few years — many homeowners in the Netherlands are not only looking into remodelling their homes but also making them more sustainable.
And this is a trend that the Dutch government wants to continue to encourage. In fact, since January 1, 2024, the Dutch government has implemented a number of measures to make sustainable renovations an attractive option for both hopeful and current homeowners.
What measures you’ll benefit from depends on where you are in the homeowning process. For example, are you looking to buy a new home? Or do you want to make sustainable renovations to your current home?
Let’s walk through these scenarios below. 👇
So, what exactly is it that you should do with your mortgage to help make this possible? Let’s talk about it.
New home? Here’s how you can use your mortgage to make it more sustainable
Ok, you’re about to get a Dutch mortgage — congrats! Let’s run through all the steps you can take in order to fund any sustainable renovations that you plan on doing in the future.
First things first, talk to your mortgage advisor
The first thing you should do is sit down with your mortgage advisor and discuss exactly what it is you want to do to make your home more sustainable.
Based on the valuation of your home and the terms of the mortgage, your advisor will point you towards two different options.
Option one: Set up a bouwdepot
One thing you can do is talk to your mortgage consultant and ask them to set up a bouwdepot for you. A bouw-de-what? I hear you ask. A bouwdepot, meaning “construction deposit”, is a loan that can be taken from your mortgage and then used to finance future renovations on your home.
A bouwdepot is usually organised during the process of establishing the terms of your mortgage. In order to set it up, an appraiser will consider the renovations you would like and make an estimate of the amount needed.
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Then it’s up to you to turn to the banks (with proof) and ask them to finance the loan.
Secured that bag of money? Great! Once the mortgage advisor has arranged the bouwdepot, clients can declare their invoices directly with the bank. This will already be activated following final approval at a notary appointment.
Option two: Apply for an Energiebespaarbudget (energy saving budget)
Not exactly sure of what renovations you would like to make but know that you want to make your home more energy efficient in the future? Then the Energiebespaarbudget, meaning “Energy saving budget”, is the best option for you.
READ MORE | How to make the most of your Dutch mortgage: renovating and refinancing
Similar to a bouwdepot, the Energiebespaarbudget is a construction deposit that can be organised alongside your mortgage and set aside to fund future renovations.
However, it’s different from a bouwdepot in two main ways:
- You can borrow up to 106% of the value of the house.
- You don’t have to figure out what renovations you want to make until later on.
Good news: If you and your partner earn a combined income of less than €60,000, you can take out an Energiebespaarbudget with 0% interest.
Make use of new government measures
As we mentioned above, as of January 2024, the Dutch government has implemented a number of measures to help encourage home buyers to opt for sustainable buildings and renovations.
For one, depending on the energy label of the house, you can borrow extra money to implement sustainable measures. You can also borrow extra money towards the purchase of the home if it has a high energy label.
| Energy label | Extra money to implement energy-saving measures | Extra money to purchase the home |
|---|---|---|
| E, F and G energy label | €20,000 | €0 |
| C or D energy label | €15,000 | €5,000 |
| A or B energy label | €10,000 | €10,000 |
| A+ or A++ | €10,000 | €20,000 |
| A+++ | €10,000 | €30,000 |
| A++++ | €0 | €40,000 |
| A++++ with at least a 10-year energy performance guarantee | €0 | €50,000 |
How can you use your existing mortgage to make your home more sustainable?
Already have your mortgage but looking between your drafty windows and those new energy bills? Geen probleem! There are still ways that you can use your mortgage to finance some sustainable and energy-saving renovations in your home.
Option one: refinance your mortgage
Okay, yes, it sounds scary — but for many people in the Netherlands, refinancing your mortgage is a feasible option that may even save you money in the long run.
READ MORE | After buying a house in the Netherlands — the ultimate aftersale guide for expats
How? You may be wondering. The key answer here is interest rates.
If you took out a mortgage 10 years ago, then chances are you are currently paying higher interest rates on your monthly payments compared to today’s interest rates.
While interest rates in the Netherlands have been rising over the past few years, it’s important to note that in the grand scheme of things, they are still relatively low.
However, Mira suggests that you talk to your mortgage advisor and explore your options. You can reduce the interest rate on your whole mortgage or obtain an extra amount, this all depends on your mortgage conditions and your income.
Note: The process of refinancing your mortgage is much like the initial process of getting a mortgage. Mira and her team are ready to guide you towards the best solution. You may not always have a notary or face a penalty fee, so it’s best to have experts by your side!
Option two: obtain an additional loan or open a Bouwdepot
While most mortgage advisors arrange the bouwdepot whilst also setting up a mortgage, that doesn’t mean it’s impossible after you have bought a house. Speak to your mortgage advisor to find out how!
Ways sustainable remodelling can save you money in the Netherlands
While the cost of refinancing your mortgage may make your eyes water, it’s important to note that part of this cost can actually be reduced.
Reduced interest rates
The Netherlands smiles down on those who choose to be sustainable — and as a result, many Dutch mortgage providers will actually reduce their monthly interest rates based on the energy label of your home.
READ MORE | Interest, inflation, and lower house prices: what does this mean for Dutch housing?
So, did you take your home’s energy label from an E to an A? Great! You’ll be paying lower interest each month — meaning you start making back some of the money you spent on those renovations.
Good to know: In order to find the best provider, it’s advisable to speak with a mortgage consultant to find the right home loan for you.
Ready to get remodelling? Contact the advisory team of Expat Mortgages for a completely free consultation to calculate what is possible for you and your mortgage!
National Insulation Programme
The Dutch government also sees the value in sustainably remodelling your home. For example, through the National Insulation Programme (Nationaal Isolatieprogramma), you will receive a subsidy to cover up to 30% of the costs of re-insulating your home and/or installing a hybrid heat pump.
Note: While this is a national programme, Mira suggests that you double-check how the process of implementing these subsidies works in your local municipality.
Mortgage costs and tax
It’s also worth keeping in mind that many of the costs involved in getting a mortgage in the Netherlands are tax-deductible. Meaning that whether you’ve just set up your mortgage or you decided to refinance in order to make some sustainable renovations, you will get some of that money back!
Will you be opting for a more sustainable home this year? Tell us your thoughts in the comments below!