Is a green loan in Belgium still interesting?
May 18, 2019
With an ecological character more attractive to consumers. There, she set up an interest rate of 1.5% through the banks. Although this was only a temporary booster that will no longer apply from 2012. Fortunately, the financial institutions have taken over the baton and are now offering green loans on their own authority that have a lower interest rate than a normal refurbishment loan.
The banks each use their own name for green loans. Eco-credit, energy and heating credit, eco & protect housing loan and energy @ home are a number of these.
Why banks offer lower interest rates (APR) on a green loan.
The most important starting point for determining bank interest is the risk associated with a loan. At a low risk, banks are willing to accept minimum interest rates for competitive reasons. The reduced risk that green loans are in the reduced energy bill that the renovation produces.
Budget each month to repay the loan
As a borrower, you now have more room in your budget each month to repay the loan and you will be less inclined to skip repayment. On average, the APR on banks’ green loans is 1.2% lower than on normal renovation loans. The interest rate discount on the free market is now almost as much as the subsidy introduced by the government at the time.
In Belgium, the energy bill of citizens covers on average 30% of housing costs.
When is a ‘green’ renovation.
As soon as the renovations or investments are specifically aimed at reducing the energy consumption of the home, they are labeled as green. When applying for a green loan you will of course have to be able to prove this at the bank by means of quotes and / or invoices. Due to the loss of government, the criteria are no longer subject to legal conditions. The banks reserve the right to make their own assessment. In practice, there appears to be little difference between the various institutions and renovations are classified as at least 70% of the costs.
- The installation of solar panels to convert solar energy into electricity. This may possibly be done in combination with renewing the roof.
- Extensive insulation of the walls, floor and roof.
- The application of high-efficiency glazing to reduce the loss of heat (energy).
Is a green loan still interesting? Tagged with: apply for a green loan