What is a sustainable mortgage?

You are hearing and seeing more and more about sustainable mortgages. But what exactly is a sustainable mortgage? Is it a loan from money obtained from sustainable funds or is the money actually used for sustainable homes. Both answers are correct, but the term is most commonly used when (part of) a mortgage is reserved to make the home more sustainable.

Making your home more sustainable

The share of sustainable mortgages increased in 2020 among all lenders, including ABN AMRO, Nationale Nederlanden, ASN and Rabobank. With a sustainable mortgage, you, as a buyer, receive an interest discount if you make it more sustainable. That is, of course, a motivation to choose a sustainable home or to make your current home more sustainable. But what does it actually mean in a sustainable mortgage? A few things at a glance.

Why a sustainable mortgage?

Everyone is encouraged to use energy sparingly. That is why more and more people are opting for sustainable or 'greener' living, such as insulation, solar panels or a heat pump. It provides home comfort, a better environment, but also lower housing costs. Because you save on energy costs and can sometimes even save on your mortgage. This is because you pay a lower interest rate on the sustainable part of your mortgage. Of course, you can always use your savings to make your home more sustainable, but you can also borrow an extra amount via the mortgage. In addition, some mortgage lenders allow you to borrow more - up to 106% of the free retail value of your home - if you invest in energy-saving facilities.

Interest discount

Some banks such as Rabobank and ABN AMRO reward “green houses” by giving a discount to buyers of a house with an A-label (most favourable energy label). With other lenders such as ASN or Lot Hypotheken, you can take out a special additional loan section for sustainability at a favourable rate.

Construction depot

The money you borrow to make your home more sustainable usually comes in a special pot; the construction depot. From this construction depot, you will then pay all bills for the installations and activities related to making the home more sustainable. To do this, you often have two years to carry out the work.

Energy Savings Report

To know exactly how to make your home more sustainable, you can have an energy savings report made. With some lenders, such as Lot Hypotheken and Florius, you get this online advice report free of charge. This way, you know exactly which savings are the most profitable and what the payback period of the sustainable investments is.

Sustainable banks

In addition to special mortgages with an interest discount for sustainability, there are also banks that get the money for your mortgage from a “sustainable” source or “not contaminated” source, such as savings or investments. Then we are also talking about a sustainable mortgage. And there are also banks that only invest their money in companies that deal very responsibly with human rights, arms trade or climate change. This is what we call sustainable banks. ASN is an example of this.

There are therefore many options for financing sustainable measures. This depends on the situation and wishes. Wondering which option is best for you? Then take contact contact one of our advisors, they will be happy to help you with this.