Energy-Saving Measures
If you are purchasing a property and planning to make it more sustainable, you may be eligible for a higher mortgage amount than usual. If you finance energy-saving measures (abbreviated as ESM), you may borrow up to 106 percent (instead of 100 percent) of the property value in 2025. Additionally, you may borrow up to €20,000 more to improve the energy efficiency of a property with a poor energy rating.
When applying for a mortgage, an income assessment is conducted to determine how much you can borrow. If you intend to make the property more energy-efficient, you may be able to borrow more than usual in certain situations, depending on your income. The exact amount depends on the energy rating of the property you are purchasing.
What are energy-saving measures?
The following energy-saving measures (ESM) can be financed up to 106 percent within your mortgage:
- Insulation of walls, roof, pipes, or flooring
- HR++ glazing (or higher)
- A heat pump
- Solar panels
Of course, there are additional energy-saving measures, such as a high-efficiency boiler, a solar water heater, underfloor heating, or roller shutters. However, these products do not fall under the category of 'energy-saving measures' and therefore cannot be financed within the mortgage.
Costs of energy-saving measures
Implementing sustainability measures naturally involves costs. The investment required to install energy-saving measures in your home varies depending on the type of provision. However, in many cases, the investment pays for itself within a few years. Given the current energy prices, the payback period is relatively short.
Higher mortgage for sustainability
Since 2024, it has been possible to obtain a higher mortgage if you plan to improve the energy efficiency of your new home. The energy rating of the property is the determining factor. The worse the energy rating, the higher the additional loan amount that may be granted. However, this additional amount must be used exclusively for sustainability improvements.
Energy-saving measures via a construction fund
To ensure that the additional loan is used for energy-saving measures, the lender places this amount in a sustainability fund or construction fund. Beforehand, you specify which measures you intend to implement and their estimated costs. Once the costs have been incurred, you submit the invoices, and the payments are made from the fund.If there is any remaining balance after the measures have been implemented or when the construction fund expires, this amount must be used for an additional mortgage repayment.
Energy-Saving Budget
If you are not yet certain which energy-saving measures to implement, opting for the Energy-Saving Budget (ESB) may be a wise decision. This option is available primarily when applying for a mortgage with a National Mortgage Guarantee. However, some lenders offer the Energy-Saving Budget without requiring the guarantee.
The key advantage of this option is that you do not need to specify the costs or measures in advance. This allows you to finalise your mortgage first and decide later which energy-saving improvements are most beneficial for your situation.
Disbursement of the Energy-Saving Budget
The borrowed amount for sustainability improvements is placed in a construction fund. When you incur costs for energy-efficient upgrades, you submit the invoices to the mortgage lender. If the expenses fall within the scope of the Energy-Saving Budget, the invoice will be paid from the fund.
Energy-Saving Budget (ESB) Conditions
- The ESB must be taken out in combination with a National Mortgage Guarantee (NHG) mortgage.
- The additional amount must be fully allocated to recognised energy-saving measures.
- You have two years to utilise the budget.
Maximum Energy-Saving Budget
With the Energy-Saving Budget, you may borrow up to six percent above the property value. For a home valued at €350,000, this amounts to an additional €21,000, provided your income allows for this borrowing capacity.
Additional or Second Mortgage for Sustainability
If your property has surplus value, you may choose to increase your current mortgage or take out a second mortgage on your home. Essentially, this means obtaining an additional mortgage specifically for sustainability improvements. Even if your property does not have surplus value, additional borrowing for sustainability purposes is possible.
For energy-saving measures, up to 106 percent of the property value may be financed under an existing mortgage. Additionally, if the higher mortgage is used for home improvements, the interest paid on this amount remains tax-deductible.
Additional Options
There are several other options available to help incorporate energy-saving measures into your home. Some lenders offer a sustainable mortgage or provide interest rate discounts for energy-efficient properties.
Additionally, there are various grants and loan options, such as the Energy-Saving Loan, green loans, and the sustainability loan. Contact us to explore the available options or visit our page on improving your home's energy efficiency with assistance from the local council or through consumer credit.