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Pay attention! Borrowing money, costs money
Sustainability loan from climate agreement off the track

Date: October 1, 2020
Author: Ronald Gracia

'Sustainability loan' from the Climate Agreement has been discontinued

The cabinet has announced that the 'building-related financing' can not go ahead. In this special loan, the loan amount is linked to the house and not the resident. That makes it less risky for homeowners to make an investment in sustainability such as a heat pump or solar panels . The plan was part of the Climate Agreement, but Minister Ollongren van Wonen investigated that such a loan would become too expensive for consumers and too complicated in terms of legislation.

Amendments to the Civil Code

The Civil Code should be amended so that lenders can provide building-related financing. In practice, however, there are too many national and European rules in the way of designing a credit that is directly linked to a home instead of to a consumer. Moreover, after extensive consultation with banks and other lenders, it turned out that for the time being no (sustainability) loans will be available that are cheaper than the current loans . Also, according to the duty of care, banks and lenders are not allowed to pass on a loan to the next 'owner' without a thorough credit test.

Uncertainty about making owner-occupied homes more sustainable

Many Dutch home owners do not know how long they will continue to live in their current home. That is why it is still a bridge too far for many to invest a lot of money in making their home more sustainable . With a building-related financing - or sustainability loan - such a credit would go to the new owner after the sale, including the repayment (repayment and interest). A great idea, but the financing is linked to a higher interest rate than a mortgage. That is because there is no collateral for the lender and the risk is therefore higher. In addition, no one currently has such a loan and unknown makes unloved. Anyone who buys a house now with about 5 to 10 years of living pleasure in mind, runs the risk that the next buyer will prefer a house without building-related financing. For the time being, it remains all in all uncertain for consumers whether large investments will quickly recoup. According to the Netherlands Environmental Assessment Agency , it is not even feasible for the time being to take major steps towards making owner-occupied homes more sustainable without subsidies.

Borrow money for sustainable living?

Have you decided to (nevertheless) make your home more sustainable with a heat pump, solar panels, insulation or all in one? A renovation for home improvement costs an average of 25,000 us dollars and with us you can take out a Personal Loan with interest deduction (tax benefit). The interest is currently historically low - you can borrow from 3.5% with an amount of 50,000 us dollars.

The term of a mortgage is usually 30 years. With a Personal Loan, a term of 1 to 15 years is usual; such a short duration often fits better with the useful life of your home improvement. Not every investment in sustainability will last 30 years.

You borrow an agreed amount once, with a fixed term and a fixed low interest rate. Additional interim repayments may always be made without penalty. You borrow responsibly and safely, without the costs for mortgage advice, appraisal and notary.

For those who no longer want to wait for the government or subsidies to make their own home more sustainable, a Personal Loan can be a great option. Calculate your tax benefit here or request a quote without obligation.

Ronald Gracia

Partner and Head of Acceptance

Author: Ronald Gracia

Michel is a real all-rounder. He knows everything about credits. Whether it concerns a personal loan, a revolving credit or a combination credit for consumers, you have to go to Michel. Michel is friendly, patient and always has time for a chat or a listening ear. '

Specialization within Snaploan Online - Acceptance of applications, issuing via e-mail and My SNLO of the overviews containing the possibilities of our partner banks.

'I make sure that you can compare all options at a glance and that you can make the right choice. I think it is really important that you take out a loan that suits your needs. '

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