Borrow to increase your quality of life and the value of your home? Renewal loans provided by the government and banks | MyGuide

Let’s say you don’t want to borrow a very large amount, and therefore you don’t want to take out a mortgage, for which you will have to pay for documentation and file costs. You are also not in the last line of a nearly paid off mortgage loan for which you can ask for your paid back principal.

In other words, you are looking for a different credit equation for your renewal. And you are certainly not alone in this. In 2022, at least 35 percent more renewal loans were taken than in the previous year. But what formats can you choose from?

Belgian banks made about 674,000 loans last year: What exactly do we need for money?

• Do you want to improve the quality and energy performance of your home?
• Is your property located in Flanders and is it at least 15 years old?
• Do you have taxable income of up to €51,840 as a single person, or up to €74,060 as a married couple without dependents (or single person with one person)?

Good news: Then you may qualify for a my renewal loan to fund your renovation. In this case, you can borrow up to €60,000, to be repaid over 25 years, with a 3 percent interest discount. Until recently, you were borrowing for free, because the statutory interest was less than 3 percent. Since February 1, 2023, you pay interest.

How interesting is this? What are the file costs? And what are the conditions there? We list everything for you.

Interesting to know: Even if you rent out your home, you may still qualify for my Renovation Loan. In this case, there are no income limits, but you must meet some other conditions. Or you can rent through a social rental office, in which case you must have a written rental promise. Or you rent yourself, but the rent may not exceed €900 (or €1,000 in some municipalities).

Do you not qualify for my renewal loan? Then you can opt for a regular installment renewal loan. Do not pay any mortgage costs or file with this credit. This makes it an interesting equation if you want to borrow a relatively small amount.

You can find rates for all scales: from 3.69 percent at Mozzeno to 9.99 percent at Budget Partners. For example, if you wanted to borrow €20,000 at the beginning of March and pay it back in 48 months, it would cost you €449.99 per month at BNP Paribas Fortis, at an annual cost rate (APR) of 3.89 percent. I subsequently paid a total of 1,599.52 euros in interest.

Are you buying a home with an (only) E or F energy label? Then, from January 1, 2023, you are obligated to renovate that building within five years, to an Energy Label D or better. If you have to take out a renewal loan for this purpose, the government will help bear the burden of interest through a subsidy. The more energy efficient your home is built, the more renovation credit you can borrow and the more discount you get.

Please note: This discounted renewal loan can only be taken in conjunction with a mortgage loan. So you can’t get credit for a home you already own.

Read more at Spaargids.be:

10,500 households are enjoying home loan deferrals due to energy crisis: This has given them financial breathing space

Your Own Place, Even on a Limited Budget: Is Kangaroo Living the Answer?

Buying a new home before selling the old one? It is possible with a bridging loan