Why Energy Labels are Increasingly Important for Mortgages, also in Eindhoven
In the current mortgage market, it is no longer only about income, interest rates, and purchase price. The energy label of a home carries more weight than ever before. This is logical: an energy-efficient home typically has lower monthly costs and is less likely to require major immediate investments.
Borrow More with a Better Energy Label
Current mortgage standards take the energy performance of a property into account. When you buy an energy-efficient home, you can borrow a higher amount. The reasoning is simple: lower energy costs leave more room for mortgage payments.
| Energy Label | Extra Borrowing Capacity | Extra Sustainability Budget |
|---|---|---|
| E, F, or G | € 0 | € 20,000 |
| C or D | € 5,000 | € 15,000 |
| A or B | € 10,000 | € 10,000 |
| A+ or A++ | € 20,000 | € 10,000 |
| A+++ | € 25,000 | € 0 |
| A++++ | € 30,000 | € 0 |
This table illustrates how a good label directly influences your financing options. At the same time, a poor label does not have to be a dealbreaker, provided that you include sustainability improvements directly into your plans.
A Poor Label Requires a Plan
Properties with a moderate or poor energy label often require long-term investments in insulation, glazing, or heating systems. Ignoring these costs beforehand leads to a limited view of the true affordability of the home.
That is why it is wise to include sustainability measures directly in your mortgage. In many cases, there is room to co-finance energy-saving measures, ensuring that the home remains affordable in practice.
Subsidies and Extra Benefits in Eindhoven
In addition to financing, there are subsidies such as the national ISDE for insulation. For homeowners in Eindhoven, there is extra good news: the municipality offers an additional incentive for insulation and ventilation measures.
Learn all about the extra insulation subsidy in Eindhoven.
Interest Benefit: The Sustainability Discount
Beyond extra borrowing capacity, many lenders offer a direct advantage: interest discounts. With a home that has a better energy label, you often receive a discount on your mortgage interest rate. This discount varies by lender depending on the specific label. Over the course of a fixed-interest period, this can save you thousands of euros. Do you currently own a home with a poor label and plan to upgrade it? Many banks allow you to request this discount during the term of your mortgage as soon as you are able to provide a new, improved label.
Value and Marketability
An energy-efficient home is more attractive to many buyers, not only for sustainability, but because total living costs are more manageable. This makes a good label a key indicator of quality. While a weak label raises questions about future costs, a good label provides confidence and long-term value.
Need Help with Sustainability and Your Mortgage?
Do you want to know how much extra you can borrow for an energy-efficient home or how to finance the greening of your current house? Schedule an appointment with Niels, and we will calculate it for you immediately.
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Niels de Jong