21 Jan Energy label affects mortgage

The energy label influences the maximum mortgage amount you can borrow.

How does that work?

When applying for a mortgage, the maximum loan amount is determined based on your income and the collateral (the property). If you already have other loans or fixed expenses, such as a private lease car, your borrowing capacity will be lower since these costs must also be covered alongside your mortgage.

Since 2024, a new factor has been introduced: the energy label. For properties with an energy label A or B, you can borrow an additional €10,000 above the income threshold. For A+/A++, this amount increases to €20,000 and can go up to €50,000 for even more energy-efficient homes. This extra borrowing capacity can be used to offer more on a property without needing to invest further in making it more sustainable. The idea is that energy-efficient homes typically have lower energy costs, allowing you to allocate more funds toward your mortgage payments.

For homes with a lower energy label, there are also options to borrow extra funds for improving energy efficiency. For instance, homes with a C or D label may qualify for an additional €15,000 to invest in insulation or solar panels. However, this additional amount must be used exclusively for sustainability improvements, not for increasing your offer or other renovations.

Lenders are required to be transparent about the sustainability of their portfolios. As a result, they are implementing more measures to promote sustainability by offering higher financing options above income thresholds and encouraging investments in energy-efficient upgrades.

The energy label is increasingly featured in property advertisements, as it is now mandatory. It is also gaining more influence on the housing market—not only to provide insight into energy efficiency but also regarding financing options.

Do you have questions about this? Contact us!