Flemish interest-free renovation loan
- Take out your mortgage loan and renovation loan at KBC Brussels
- Make your home much more energy efficient within five years
- Claim back the interest on your renovation loan from the Flemish government
What is the Flemish interest-subsidised renovation loan?
If you're taking out a mortgage loan to buy a home whose energy performance is poor and you make this property much more energy efficient within 5 years, you can take out a Flemish interest-subsidised renovation loan to cover the work required to improve energy efficiency. The Flemish government pays this interest subsidy on the renovation loan if you meet all the conditions in place.
What are the conditions?
A brief summary:
- You acquire full ownership of the property by buying it, buying out your partner or by demolishing and rebuilding it
- The property you bought is located in the Flemish Region
- You apply for the Flemish renovation loan at the same time as the mortgage loan for buying the property
- Your home has to achieve a minimum energy performance rating (EPC label) based on the date you sign the loan offer.
Loan offer signed before 1 January 2023
◦ Your house has EPC label E or F when ownership is transferred and the renovation work enables it to obtain a C label or better within 5 years
◦ Your apartment has EPC label D, E or F when ownership is transferred and the renovation work enables it to obtain a B label or better within 5 years
Loan offer signed on or after 1 January 2023
◦ Your house or apartment has EPC label E or F when ownership is transferred and the renovation work enables it to obtain a D label or better within5 years
All the relevant conditions are published on the Flemish Government's website.
Be sure to check out www.premiezoeker.be. The Flemish and Federal governments provide a range of grants and other benefits. By using this, you can find out in advance which grants or subsidies you are eligible for.
More information on the Flemish interest-subsidised renovation loan
House (EPC label E or F)
|EPC label to be obtained within 5 years||Maximum amount|
|D (only for loan offers signed on or after 1 January 2023)||20.000 euros|
Apartment (EPC label E or F)
|EPC label to be obtained within 5 years
|C (only for loan offers signed on or after 1 January 2023)||20.000 euros|
|D (only for loan offers signed on or after 1 January 2023)||10.000 euros|
Apartment (EPC label D – only for loan offers signed before 1 January 2023)
|EPC label to be obtained within 5 years
- Take out a mortgage loan at KBC Brussels to buy your home and arrange a Flemish interest-subsidised renovation loan at the same time to make your home more energy efficient
- Complete a sworn statement when applying for the interest subsidy
- KBC Brussels forwards your application to the Flemish government
- Pay the interest on both loans to KBC Brussels
- The Flemish government pays an interest subsidy on the renovation loan each year provided you meet all the conditions
- Provide the Flemish government with a new energy performance certificate within five years of the date on which you signed for your loan, proving that the required EPC label has been obtained
The loan to buy your home and the loan to renovate it are types of 'mortgage loan for immovable property'. This type of loan is usually secured by a mortgage, a power of attorney to create a mortgage or a combination of the two.
You can apply for a mortgage loan at KBC Brussels only if you live in Belgium and receive your main income in euros.
Our expert advice will help you make the right decision. It only takes a few minutes to use our calculator to get answers to questions like:
- How much can I borrow?
- How long should I borrow for?
- Should I opt for a fixed or a variable interest rate?
- What is the total cost?
- What are the tax implications?
|Loan offer signed in|
|Target EPC label||2021-2022||2023 - discount on interest rate|
|D||The interest subsidy is equal to the interest paid on the renovation loan (tantamount to an interest-free loan)||2%|
Where can you apply for the Flemish interest-free renovation loan?
Lender: KBC Bank NV, Havenlaan 2, 1080 Brussels, Belgium VAT BE 0462.920.226 – RLP Brussels – FSMA 026 256 A. Subject to your loan application being approved by KBC Bank NV.
KBC Bank does not offer loan agreements in foreign currencies. By law, these sorts of loan agreements are defined as loan agreements under which the credit:
- is expressed in another currency in which the consumer receives the income or holds the assets out of which the loan is to be repaid;
- is expressed in another currency than that of the member state where the consumer resides.
KBC Bank therefore concentrates exclusively on individuals who live in Belgium and whose main income is in euros.