Up to 3% discount on interest rate: These are your options to borrow at a cheaper rate for energy renewal | My guide

The fact that more and more people want to buy and renovate an old property with a poor EPC value has something to do with the price. Move-in homes with a good EPC score are more expensive, while interest in homes with a poor EPC score has waned and prices have come under pressure. So much so that more people are thinking again about buying and renovating an energy-intensive home, if they have enough budget for renovation.

Are you considering a renovation loan? Compare interest rates and terms of different providers here and make the best choice.

If you take ownership of a house or apartment with EPC marking E or F in the Flemish region today, you must actively renovate the entire house within five years, at least to EPC marking D. This is mandatory, but the Flemish government also provides financial support for this purpose.

On the one hand, you can apply for my renovation loan in Flanders, worth up to 60 thousand euros, for a maximum period of 25 years, at the statutory interest rate minus a 3 percent discount. This currently stands at 2.25 percent. The applicable interest rate will be adjusted again in the spring. Let's say you currently take out my €25,000 20-year renovation loan, it will cost you €6,002.61 in interest over the entire term.

In addition, you can also take out a renovation loan at the bank where you took out a mortgage loan for a property marked EPC or E, in order to carry out the mandatory energy renovations within five years. Since 2023, you have received a discount on the market interest rate in Flanders, thanks to the interest subsidy from the Flemish government. For example, let's say the market interest rate is 3.5 percent, and you want to get Score B and borrow 45,000 euros for this. Then you get a 3 percent discount and still pay interest of 1,741 euros.

In the Brussels-Capital Area, you may be able to get an Ecoreno loan. Either a consumer loan (limited to 25,000 euros), or a mortgage loan with an interest rate of 1.5 to 2.5 percent. In Wallonia, you can get help with energy saving projects with an installment loan with an annual percentage rate (APR) of 0 percent, from 1,000 to 60,000 euros, for a maximum period of 30 years.

Reading advice: The Flemish government guarantees 10 percent of the housing loan.

According to the Flemish government, you can get a renovation loan with renewal support from several lenders: Argenta, AXA Bank, Bank Van Breda, Nagelmackers, Belfius, Beobank, BNP Paribas Fortis, Credimo, Crelan, DVV Insurance, Elantis and Eurobank. ING, KBC, Keytrade Bank, Tridios and VDK Bank. But again: it is only combined with a mortgage loan.

In addition, many banks grant energy loans to finance, for example, solar panels, double glazing and roof insulation. According to the Compare Spaargids.be You'll find the lowest APR for this at ING: 3.52 percent. If you want to borrow for ten years, the annual interest rate applies to the amount of €20,001. You then pay a total of €3,691.80 in interest.

Buy off plan or turnkey: What if the construction company goes bankrupt?

First try to get financial support from the government, such as My Renovation Loan or a renovation loan from the Flemish government. Both at the same time are not possible. In addition, you must apply for renewal relief immediately when you obtain your home mortgage. However, don't wait too long: the interest subsidy for purchases (original bonds) will stop as of January 1, 2025.

Read more on Spaargids.be:

Buying your own home with a modest income: this is how it is possible

When will housing interest rates fall again? Why is it important that we look to the United States to achieve this goal?

Buying a house without having to borrow: Why is it (not) interesting to buy on an annuity?