Spaargids.beGood insulation ensures that you can somewhat limit the impact of high energy prices. It also contributes to the efficiency of heat pumps and other forms of renewable energy. But (partially) insulating your house is often a big expense. Can you borrow for insulation materials? And which loan is the cheapest? Spaargids.be figure it out.
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By Kurt Deman, in collaboration with Spaargids.be
Latest update:
09:56
Just when insulation proves to be a necessity more than ever, prices are skyrocketing due to the war in Ukraine. A recent survey by De Inspecteur shows that the cost of some insulation materials has already risen by fifty percent. For those who cannot or do not want to pay for that investment immediately, a renovation loan may offer a solution. Spaargids.be lists the various options below:
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1. Green renovation loan
The bank grants favorable interest rates to those who borrow with a view to saving energy. Bee BNP Paribas Fortis For example, take out a green loan today at an annual percentage rate (APR) of 1.25 percent. You can borrow between 1,250 and 50,000 euros. If you borrow 15,000 euros for a term of 36 months, you pay 424.69 euros back to the bank each month. At the end of the ride you have paid 288.84 euros in interest.
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BNP Paribas Fortis stipulates that at least half of the invoice amount applies to energy-efficient investments. With other credit institutions, that share amounts to 100 percent of the investment. In addition, the minimum and maximum amounts and durations also vary. Other conditions, such as the possible required execution of the works by a recognized contractor, may also vary. Compare the rates of different energy loans here.
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2. Resumption of home loan
You can also finance the purchase of renovation works through a new mortgage loan. For this you pay file costs at the credit institution and you also cough up deed costs at the notary. That does not immediately make this loan the appropriate option for those who only invest in insulation.
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Anyone who has already partly or completely paid off an existing mortgage loan can opt for the re-taking of the existing mortgage loan. In that case, you borrow at the current interest rates of a mortgage loan, but you only pay file costs at the bank. Since mortgage rates have risen sharply in recent weeks, the green renovation loan will in many cases still offer the cheapest solution.
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Tip: How does a re-withdrawal of your home loan work?
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3. Interest-free renovation loan
The interest-free renovation loan from the Flemish government is only available for those who buy a house or apartment with a poor energy performance (EPC) and take the initiative to significantly boost that performance. The Flemish Energy and Climate Agency (VEKA) will then automatically repay the interest owed to the bank.
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To be eligible for the interest-free renovation loan, you must have taken out a main mortgage loan before purchasing the property. In addition, you should increase the energy label of a single-family home from label E or F to A, B or C within a period of five years, with an apartment it concerns a transition from D, E or F to label A or B. How much you can borrow depends on the intended EPC label.
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If you renovate a house from label E to label C, you can borrow 30,000 euros, if you renovate to label A, that is 60,000 euros. Read more about the free renovation loan from the Flemish government here.
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4. Flemish Energy Loan
Persons who are entitled to an increased contribution from the health insurance fund, among others, are entitled to an interest-free energy loan from the Flemish government. From 1 July, the Energy Loan will go through life as My Renovation Loan, while at the same time the maximum amount will increase from 15,000 to 50,000 euros and the maximum term will be extended from 10 to 25 years. You can submit an application via the Energiehuis.
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