The government recently presented the climate agreement. The consequences for all Dutch people are huge. Homes must be rid of natural gas by 2050 at the latest, the use of solar panels and heat pumps, among others, will be encouraged. The government also assumes that mortgage advisers will lend a hand!
Role of mortgage adviser in achieving climate goals
The climate agreement includes the following:
“The parties in the chain encourage buyers and homeowners to move towards sustainability at the earliest possible stage. Mortgage advisers point out in mortgage advice the possibilities for financing sustainability measures.”
I am very curious how the cabinet will get the mortgage adviser to go so far as to include the Energy Saving in the mortgage advice as standard!
What are the options at the moment? A number of schemes are offered from the Temporary Mortgage Credit Regulation and the National Mortgage Guarantee.
There is the possibility to get a higher mortgage in relation to the income. Or a higher mortgage than with the standard maximum mortgage calculation. This applies to both new energy-saving measures and an already energy-efficient home:
Mortgage up to 9,000 euros if:
- This amount is spent on new energy-saving facilities
- A home is purchased with an A ++ or higher energy label, which was issued before 1 January 2015
- The property has an energy index or energy performance coefficient of no more than 0.6
Mortgage up to € 15,000 higher if:
- The property has an energy index or energy performance coefficient of no more than 0
Mortgage up to 25,000 euros if:
- The house is a zero-meter meter and an energy performance guarantee of at least 10 years is available for that house
A condition for all 3 schemes is that the income is at least 33,000 euros
Lower energy bill = more room for mortgage payments
The basic idea behind these schemes is that energy savings lead to a lower energy bill. As a result, the homeowner has a little more money left and there is a little more room to spend on the mortgage.
Suppose a new kitchen costs 12,000 euros but leads to an increase in the value of the home of 7,000 euros. Then only 7,000 euros extra can be borrowed through the mortgage. The customer must finance the amount of 5,000 euros (the part of the kitchen costs that is not included in the appraisal value of the home) from his own resources.
A more comprehensive scheme applies to energy-saving facilities. The entire investment may be included in the mortgage, regardless of the increase in value. This arrangement is limited to 6% of the market value of the home.
Example: customer buys a property with a market value of 200,000 euros. The customer wants to install solar panels for 12,000 euros and to finance as much as possible within the mortgage. The market value after installing the solar panels, for example, becomes 208,000 euros. The investment in energy-saving measures falls within 6% of the market value of the home, as a result of which the full investment of 12,000 euros in the mortgage is co-financed. Note: the investment of 12,000 euros must be included in the valuation report. In addition, this amount comes in a remodeled bank account.
Energy Save Budget
With ABC it is also possible to include an in the mortgage. The customer can then “reserve” an amount of 6% of the market value of the home in a renovation depot. Here the homeowner does not have to determine in advance what he will spend the amount on. Note: there is also a disadvantage: the customer depends on the bank how long they want to keep the amount in deposit.
All in all there are various options. However, I expect the homeowner to have to spend a lot of money in order to meet the cabinet’s requirements. Personally, I am not in favor of the climate agreement. This only works if all countries of the world participate. The latter is of course a utopia.