Higher maximum mortgage with a better energy label

In 2024, the maximum mortgage will increase if you purchase a home with a better energy label. On the other hand If you buy a home with a poor energy label, you can borrow less than is currently the case. For a highly energy-efficient home, the difference can be up to € 50.000,-. Additionally, the loan options for energy-saving measures will also change.

Every euro you spend on your energy bill is one euro less you can spend on your mortgage. For this reason, from 2024, your maximum borrowing capacity will be linked not only to your income, home value, and mortgage interest rate but also to the energy label. This ensures that the maximum mortgage aligns better with the actual financial capacity households have. Likely this will also give another reason for home owners to install energy saving measures and obtain a better energy label.

Those with a more energy-efficient home can spend more on a mortgage, allowing for a higher loan amount. For homes with labels C and D, this is € 5.000,-. It can go up to € 50.000,- if you have a home with an A++++ rating and an energy performance guarantee for at least ten years. The table below shows the effect for other energy labels.

Suppose you have your eye on a home that is priced at € 390.000,-. The property is appraised at € 400.000,-. Based on your income, you can only borrow a maximum of € 375.000,-. Because the home you’re interested in has a label B, you can borrow an extra € 10.000,-. Now you only need to pay € 5.000,- from your own pocket instead of € 15.000,-. However, if the appraised value of the home is € 375.000,- then that remains the maximum loan amount. You cannot borrow more than the property value.

If you want to make your home more energy-efficient, this year you can, under certain conditions, borrow an additional € 9.000,- for that purpose. In 2024, the extra loan amount will depend on the energy label. For homes with a lower energy label, you can borrow more (maximum € 20.000,- with E, F or G label) compared to homes with a better energy label (minimum € 0,- with A++++ label). What remains the same is that the additional amount to be borrowed is deposited in an energy saving measures fund account with the mortgage provider. This ensures that the extra loan amount is actually used for the sustainability of the home.

If we go back to the previous example, in 2024, you can borrow a maximum of € 385.000,-. When you want to make the home more sustainable after the purchase and meet the conditions, you can borrow an additional € 10.000,-. However, this € 10.000,- is placed in an energy saving measures fund. So, you still need your own money to cover the remaining € 5.000,- for the purchase. Also don’t forget the buyer’s costs either.

Considering buying a home? A logical first step in the buying process is knowing how much you can borrow. This allows you to search for a home more effectively. Curious about how much you can borrow in 2023 and how the situation will change in 2024? We’d be happy to map it out for you. Feel free to contact us via the form below.

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