With smart renovations you can make your home a lot more sustainable. This will save you energy and lower your carbon emission, which is obviously better for the environment and your wallet. But how can you finance the sustainable renovations?
Most things you do to make your home more energy efficient will pay for themselves over time. These are smart investments, but as with any investment, you do need to have the money in the first place. Luckily, there are different financing options and support measures available for you to make sustainable changes to your home. We've set these out for you.
1. Own resources
Nowadays, your savings yield hardly anything. So you are better off investing in your home: more specifically in renovations that improve its energy efficiency. Because your home consumes less, you save on your energy costs. After a period of time you will at least recoup your investment, and it will save you quite a few pennies. Also, the value of your home will increase. Win-win!
Using your own resources for your sustainable renovations is the least risky way of financing. However, it also has a drawback: your savings buffer will shrink and you will receive less interest on your savings.
2. Green renovation loan (bank)
If you have little or no savings or have other plans for them, then you can also take out a renovation loan with your bank.
With a renovation loan you borrow at a fixed rate of interest, with monthly repayments. Plus, there are no extra charges. You can use a renovation loan to refurbish your kitchen, bathroom, dressing room, terrace... the list goes on.
With ING you get an eco-benefit if you take out a renovation loan for carrying out energy-saving works like installing solar panels, a heat pump, extra insulation, etc. That way, you save both energy and money.
3. Mortgage loan (bank)
You can also borrow money with a mortgage loan.
- Don’t currently have a mortgage? Then you can finance your renovation project hassle-free with a new mortgage loan. The interest on a mortgage loan is a bit lower than on a renovation loan. However, you will need to factor in notarial charges and arrangement fees (2 to 3% of the amount borrowed). Taking out a new mortgage loan is therefore only an attractive option if you want to borrow a large amount (over 50,000 euros). To get a clear picture of your project, you can make a mortgage loan simulation.
- Already have a mortgage? Then you can borrow extra money for your sustainable renovation through a drawdown under your current agreement. This is only possible if the amount already repaid on your existing mortgage loan is big enough. With a drawdown, you won’t pay any notarial charges, although you will still pay arrangement fees.
- A mortgage loan may also bring a number of tax benefits.
Overview of potential tax benefits for all three regions
1. Flanders
Due to the abolition of the home deduction, you will no longer be able to benefit from tax relief in Flanders from 2020, unless you are buying a second home. In that case, it is not the Flemish Region that has authority, but the federal government.
For mortgage loans taken out before 2020 you can use our simulator to find out which tax benefits you are entitled to.
2. Brussels Capital Region
The tax benefits depend on a number of parameters, such as the use of the residence and the date on which you took out the mortgage. Use our simulator to find out which tax benefits you are entitled to.
3. Wallonia
The tax benefits depend on a number of parameters, such as the use of the residence and the date on which you took out the mortgage. Use our simulator to find out which tax benefits you are entitled to.
Renovation loan or mortgage loan?
Which is cheaper: a mortgage or a renovation loan? That depends on your personal situation and needs. With a mortgage, you can borrow larger amounts at competitive rates of interest and enjoy attractive tax benefits. However, you must factor in additional costs. The renovation loan is more flexible, usually requires no security and incurs no extra charges.
4. The Flemish Renovation Loan (interest subsidy)
For mortgage loans signed as of 2023, it's possible to benefit from the Flemish Renovation loan, if you combine your property purchase with a renovation.
Depending on your situation, you can borrow up to 60.000 € and benefit from a discount of the interests of this loan via a subsidy paid by the Flemish Agency for Energy and Climate (VEKA).
All details and conditions can be found on Vlaanderen.be (NL).
5. Energy loan (government)
For some energy-saving renovation works you can also apply for loans from the Flemish, Brussels or Walloon governments. However, the amount you can borrow is limited and may be based on household income. Read the terms and conditions of these government loans on the following pages:
- Flanders (link to page in Dutch)
- Wallonia (link to page in French)
- Brussels Capital Region (link to page in French)
6. Subsidies
If you invest in energy-saving measures in your home, you qualify for various subsidies and grants.
> In Flanders you can receive financial assistance from:
- Your grid operator
- the federal government
- the Flemish government
- your municipal administration
- your provincial administration
Would you like to find out which subsidies you qualify for? Find out with the subsidy searcher (link to page in Dutch).
> Wallonia also offers various grants (link to page in French) to support your investment in sustainable renovations.
> In the Brussels Capital Region you can claim various support measures (link to page in French) for sustainable renovation works. On average, 20% of the eligible costs of your invoice will be reimbursed.
Want to know more about renovating sustainably?
Discover all our articles on sustainable living.
Also find out how loans from ING can help finance your sustainable renovation project.