Greater comfort and long-term savings
Are you renovating or making your home more sustainable?
There are all kinds of ways to prepare your home for the future. But how will you pay for that renovation or sustainability upgrade? You can use (part of) your savings for this, but there are also several options for taking out an additional mortgage.
Help yourself and the climate!
Here's how to pay for making your home more sustainable
Making Your Home More Sustainable offers all kinds of benefits. From greater comfort and lower energy bills to an increase in your home’s value. This way, you’re not only helping to protect the climate, but you’re also saving money in the long run.
Increase Your Existing Mortgage
Did you know that you can increase your mortgage to pay for energy-saving measures such as insulation or solar panels? You can take out up to an additional 6% of your home’s value in a mortgage for sustainability measures. You can also use the use the equity in your home. This means you can borrow a new amount on top of your existing mortgage.
Take out a loan through the Warmtefonds
The Warmtefonds was established by the national government. You can apply for a loan from the Warmtefonds on favorable terms and at low interest rates. This allows you to start saving quickly and responsibly.
Get a discount or grant for sustainable investments
Sustainable home improvements are increasingly being rewarded with discounts or subsidies. For example, you can often get a lower interest rate—or a particularly favorable mortgage rate—if your home meets certain standards. Subsidies for solar panels, insulation, and heat pumps may also be available (this varies by municipality).
Shariff Roling | Mortgage Advisor
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More space to suit your living needs
Here's How to Pay for Home Renovations
You don't want to move, but you do want more space. Sometimes, remodeling is the answer. Or maybe you're buying a house and want to start remodeling right away?
There are several ways to pay for a renovation.
Include your home renovation costs in your mortgage
Are you buying a home and want to renovate it right away? If so, you can include (part of) the renovation costs in your mortgage. A property appraisal report will document the home’s value after the renovations. Based on this, you can secure a higher mortgage to cover the renovations.
Taking Out a Supplementary Renovation Mortgage
If you already have a mortgage, you can increase the loan amount to cover the renovation—especially if your home has equity. This means you’ll borrow additional funds on top of your current mortgage balance. You’ll often do this with the same bank or mortgage lender that provided your first mortgage. You can also take out a second mortgage with a different bank, though there can sometimes be some complications involved.
Personal loan or credit arrangement for the renovation
For smaller home improvements, you might want to consider a personal loan. It can be arranged quickly and has a fixed interest rate. With a revolving line of credit, you can borrow money up to a credit limit. You can withdraw the funds all at once or in installments. This is convenient if you don’t need all the money right away, such as when renovating. A revolving line of credit offers flexibility in withdrawing and repaying amounts, but the interest rate may be variable.
Frequently Asked Questions About Mortgage Advice for Home Renovations and Sustainability Improvements
Yes, in most cases, the interest on a loan for renovating your own home is tax-deductible, provided the loan is used for the maintenance or improvement of the home in which you live.
Yes, you can use a mortgage top-up for both home maintenance and home improvements. Examples include replacing a roof, renovating the kitchen or bathroom, or landscaping the yard.
The process of increasing your mortgage can take anywhere from a few weeks to a few months, depending on the complexity of your situation and how quickly you submit your documents. A detailed renovation plan and quotes can speed up the process.
The maximum amount you can borrow depends on your income, the value of your home, and your existing mortgage balance. I’d be happy to run the numbers for you so you know exactly what your options are.
If you don’t have enough home equity, you might want to consider taking out a personal loan. This can be an alternative for smaller home improvements. The interest rate is usually higher than on a mortgage, but the loan is often available more quickly.
You’ll usually need recent pay stubs, a summary of your current mortgage, an appraisal report for your home, and detailed renovation plans or quotes. During an online consultation, I’ll provide you with a complete list of the required documents.
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