Which loan is the best fit for your renovation project?

The renovation loan with interest grant will cease to exist in 2025, but interesting alternatives will remain available. We provide an overview below.

If you have bought an energy-consuming home in Flanders, you have been able to borrow at affordable rates in recent years to renovate your property. In some years, interest-free loans were even available: you could take out a loan from the bank and the interest would be refunded in full. In recent years, however, this type of loan became subject to interest, so a discount was applied instead: the more energy-efficient you made your home, the greater the discount would be. This system allowed you to borrow up to €60,000. However, it will come to an end starting in January 2025. What alternatives are on offer in Flanders now? And what options are available in Brussels and Wallonia?

1. Mijn VerbouwLening (Flanders)

Under the existing Mijn VerbouwLening loan, you will receive a 3% discount on the statutory interest rate. The statutory interest rate currently stands at 5.75%, which means you pay interest on the loan at 2.75% once the discount is applied. The interest rate is projected to fall in the spring of 2025, but just how far remains to be seen. The loan can be put towards renovating your roof, walls, foundations, floors, interior, electrics and sanitary facilities. Sustainable works focusing on energy performance (such as heat pumps, solar-powered boilers and solar panels) are also eligible. You can also do some of the work yourself, although this is limited to the interior renovation, electrics and sanitary facilities. Take a look at the full overview and conditions for more information. A Mijn VerbouwLening loan allows you to borrow up to €60,000 (with a minimum of €1,250) for a maximum term of 25 years. Administration fees are not charged. You can apply for this type of loan online using the Flemish government's Verbouwloket instead of at a bank. In order to be eligible, you must not exceed a certain income threshold. The maximum annual income for a single person is limited to €51,840, while the threshold rises to €74,060 for a single person with one dependent or a couple with no dependents. The amount increases by €4,160 for each additional dependent. Note: You can also benefit from the Mijn VerbouwPremie, which is a premium aimed at renovations and energy-saving investments. The premium is deducted from your loan. You should keep in mind that you can also claim subsidies from your municipality.

2. Ecoreno loan (Brussels)

If you wish to renovate your home in the Brussels-Capital Region and save energy at the same time, you may be eligible for an Ecoreno loan. This type of loan may be provided as a mortgage loan or as a consumer loan, depending on your situation. In the first scenario, you will need to engage a notary (at an additional cost), while this is not required in the latter case (no additional costs).

The focus lies on works that make your home more energy-efficient, safer and more comfortable, such as insulation, efficient heating systems, roof renovations, a new bathroom or work on the electrics. Major and minor renovations can be financed with this loan.

When provided as a mortgage loan, you can borrow up to 100% of the value of your property following the renovations. It has a flexible term of up to 25 years. A consumer loan is used for smaller amounts between €1,500 and €25,000, with a term of up to 10 years. The interest rates vary according to your income and family situation, standing at 1.5% or 2.5%. A credit agreement can be requested at infolening@fonds.brussels. In addition to the Ecoreno loan, you can claim Renolution premiums, which are specifically intended for energy-saving renovations. The Ecoreno autonomy loan is also available to people aged 60 or over or those with disabilities and focuses on specific works needed to adapt a property to improve independence.

3. Rénopack and Rénoprêt (Wallonia)

If you own a home in Wallonia that is more than 15 years old, you can apply for a range of interest-free loans through the Société Wallonne du Crédit Social (SWCS) to carry out your renovation works. Whether you are looking to save energy, make your home safer or more accessible, or want to live in greater comfort, you are sure to find a loan to suit you. You can borrow up to €60,000 in total.

• Rénopack (0% interest)

The Rénopack is aimed at anyone who, based on an energy audit, wants to tackle a full renovation to make their home more energy-efficient and who may be entitled to premiums. Such measures include insulation, new windows or a more efficient heating system, for example.

• Rénopack SWCS (0% interest)

If your roof needs urgent attention or your electrics need to be upgraded, the Rénopack SWCS is the ideal solution. This type of loan does not require an energy audit and you can still take advantage of premiums. The Rénopack SWCS loan applies solely to roofing and electrical works.

• Renoprêt (0% interest)

The Rénoprêt loan allows you to finance renovations for which an energy audit is not required and for which you do not (or cannot) receive premiums (such as solar panels or external joinery).

To be eligible for these loans, your annual taxable income must not exceed €104,400. You must live in the property. Additional conditions may also apply. You can apply for the loan online here.

4. Green loan or eco loan (Belgium)

If you do not meet the conditions for one of the loans issued by the regions (because your income is too high or you want to borrow more than €60,000, for example), a green loan or eco loan from the bank may be a viable alternative. This type of loan is targeted at energy-saving investments, such as the installation of solar panels, a heat pump, high-efficiency glass or insulation. As a rule of thumb, interest rates are lower than for traditional loans, although the exact interest rate will vary depending on the bank and market conditions.

A green loan usally allows you to borrow larger amounts than those available with the Mijn VerbouwLening loan and Rénopack and Rénoprêt loans. The maximum amounts vary for each lender, but often stand at €100,000 or more. The term is also flexible. Although the interest rates may be attractive, contributions from the government are not offered with this type of loan, which means you have to repay the interest in full.

Furthermore, banks require an overview of the planned works and proof that these works represent an energy-saving investment. You should therefore make sure you have quotes and invoices to hand when applying for a loan. Even if you opt for a green loan, however, you may still be able to claim government subsidies and premiums.

5. Traditional renovation loan (Belgium)

If you are not specifically seeking an energy-saving solution and simply want to finance some renovations, you can opt for a standard renovation loan. Most banks offer this type of loan, which provides flexibility both in terms of the amount borrowed and its term. You can use such a loan for a variety of works, including a new kitchen, a new bathroom, renovating your interior or even a new garden.

The interest rates on an ordinary renovation loan are usually (but not always) slightly higher than those on a green loan, as they come without specific energy-saving conditions attached. The exact conditions, such as the maximum term and the minimum amount, vary from bank to bank.

Although there are no discounts linked to standard renovation loans, this type of loan does offer you greater freedom, as you do not need to provide proof of specific energy-saving investments, which simplifies the process.

6. Mortgage loan (Belgium)

If you have extensive renovation plans or you wish to combine your renovation work with purchasing a home, a mortgage loan may be a good solution. This type of loan offers higher credit limits and longer terms than most other renovation loans, making it suitable for major or structural renovations.

The term of a mortgage loan is flexible, and you can opt for a fixed or variable interest rate. A fixed interest rate means you know exactly how much you'll be paying each month, while a variable interest rate may start on a lower amount, but may rise or fall depending on the market interest rate. In the case of a mortgage loan, you must take additional costs into account, such as notary fees, administration fees and, if applicable, an appraisal report for your property. Debt balance insurance may also be required, depending on the lender. If you already have a mortgage loan, releasing equity may also offer a solution, especially if you have already repaid a large part of your loan. You can then use your existing mortgage as a guarantee on a new home loan, which enables you to avoid new notary fees and mortgage fees. However, the interest rate on the amount you borrow again will no longer be the same rate as your existing loan, but will instead be a new rate.

New: Lower registration fees in Flanders and Wallonia

Buyers of a primary, sole residence who sign their deed after 1 January 2025 will benefit from lower registration fees from then on. In Flanders, the rate will fall from 3% to 2%, while the rate will fall from 12.5% to 3% in Wallonia.

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