Borrow to increase your quality of life and the value of your home? These renovation loans are offered by the government and banks

Suppose you do not want to borrow too large an amount and, therefore, do not want to take out a mortgage loan, for which you would have to pay notarial and file costs. You are also not in the last straight line of a mortgage loan that has almost been repaid and from which you could request repaid capital again.

In other words, you are looking for a different credit formula for your renovation. And you are certainly not alone in this. In 2022, no fewer than 35 percent more renovation loans were taken out than the year before. But which formulas can you choose between?

Belgian banks provided around 674,000 loans last year: what exactly did we need money for?

• 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?
• And do you have a taxable income of a maximum of 51,840 euros as a single person, or a maximum of 74,060 euros as a couple without a dependent (or a single person with one dependent)?

Good news: then you may be eligible for the My Renovation Loan to finance your renovation. In that case, you can borrow up to 60,000 euros, to be repaid over 25 years, with a 3 percent discount on the interest. Until recently, you borrowed for free, because the statutory interest was less than 3 percent. Since 1 February 2023, you do pay interest.

How much is that interest? What are the file costs? And what conditions are there? We list everything for you.

Interesting to know: even if you rent out your home, you may be eligible for the My Renovation Loan. In that case, there are no income limits, but you must meet some other conditions. Or you rent through a social rental office, in which case you must have a written rental promise in hand. Or you rent out yourself, but then your rent may not exceed 900 euros (or 1,000 euros in some municipalities).

Are you not eligible for the My Renovation Loan? Then you can opt for a normal installment renovation loan. You do not pay any mortgage or file costs with that credit. That makes it an interesting formula if you want to borrow a relatively small amount.

You can find rates in all sorts of magnitudes: from 3.69 percent at Mozzeno to 9.99 percent at Budget Partners. For example, if you wanted to borrow 20,000 euros at the beginning of March and repay it in 48 months, it would cost you 449.99 euros per month at BNP Paribas Fortis, at an Annual Cost Percentage (APR) of 3.89 percent. You then paid a total of 1,599.52 euros in interest.

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

Please note: this discounted renovation loan can only be taken out in combination with a mortgage loan. You cannot therefore take out the credit for a home that you already own.

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