Can I get a higher mortgage with a better energy label?

It’s a new year again and, as always, it comes with new rules and conditions.

This is also the case when applying for a mortgage. From 2024, it will be the case that households purchasing an energy-efficient home can get an extra mortgage for this.

We will explain below what impact these rules have on the purchase of your dream home and what you can pay attention to yourself.

Energy labels and mortgage amounts

Until now, homes with a C-label were the standard, but the link between the energy label and an extra mortgage amount means that homes with an EFG-label will become the standard. So, the better the label, the more extra mortgage you can borrow.

The reason for this link is that owners of energy-efficient homes often have a lower energy bill, which means they have more left over to pay the mortgage.

This is represented as an income-independent extra amount linked to the mortgage. This amount can easily amount to an extra €50,000 mortgage for a house with an A++++ label with guaranteed no energy costs.

Logically, the borrowing capacity for buyers of a home with an energy label E, F, or G will decrease. This is definitely something to consider when you are looking for a (new) home. Calculate how much mortgage you can get.

Below, you can see in a handy table how much extra you can borrow for each label:

Energy label	Maximum extra mortgage loan amount
E, F, G	€ 0
C, D	€ 5.000
A, B	€ 10.000
A+ t/m A++	€ 20.000
A+++	€ 30.000
A++++	€ 40.000
A++++ with guarantee	€ 50.000

Making your home more sustainable

On the other hand, when applying for an additional mortgage to make your home more sustainable, it works exactly the opposite way. The higher and better your energy label, the less you can borrow for this, as it is less necessary than for a house with a low energy label.

So, owners of homes with energy labels E, F, or G can borrow an extra €20,000,- while for home owners with an energy label A or B, it is a maximum of €10.000,- Now that amount has been standardized for everyone to a maximum of €9,000,-

Below, you can see in the table how much extra you can borrow to make your home more sustainable for each label.

Initial home label (for sustainability improvements)	Maximum extra mortgage loan amount
E, F, G	€ 20.000
C, D	€ 15.000
A, B t/m A+++	€ 10.000
A++++	€ 0

Also read: What impact does the energy label have on your mortgage?

Borrowing standard and salary increase

To prevent you from borrowing too much and getting into financial difficulties, the bank also considers your income and fixed expenses in addition to the energy label. They also determine how much money you should have left after paying your monthly principal and interest each month to live on. The latter is called the loan standard. The National Institute for Budgetary Information (Nibud) annually provides independent advice on the borrowing standards for mortgages.

In 2024, wages have increased, and this directly affects borrowing capacity. This changes due to changes in wages, prices, and tax measures. Without wage increases, the maximum mortgage decreases for many income groups. This is mainly due to high inflation.

On the other hand, single individuals can borrow an additional €16,000 starting from next year. This amount provides this group, who rely on a single income, with a bit more financial flexibility when buying a home.

Student debt and increasing student loan interest rates

Fortunately, from now on, a different perspective is also taken on homebuyers who still have student loans. So far, the original student debt amount was always considered when determining borrowing capacity. Starting in 2024, the monthly payments of the debt will be the primary guideline. So, if you have made extra payments on your student debt, you will be rewarded for it because your monthly expenses decrease as a result.

Conscious buying

Of course, it’s nice that you can borrow extra money through the energy label, but make sure to assess whether these additional amounts are truly necessary and fit within your monthly budget. Your monthly payment will naturally become higher as a result, and you should be able and willing to afford it. Perhaps you need that money for entirely different expenses.

So, make sure to have a proper calculation done and explore all options with your mortgage advisor. This way, you can be sure that you’re making a good start when buying your dream home.

Nobel Mortgages

Do you want to know if you qualify for extra borrowing capacity due to your energy label? Whether it’s to make your home more sustainable or to finish it off even more beautifully with a stunning dormer, for example. We’ll find out for you!

We at Nobel Mortgages are happy to help you by providing high-quality financial advice and think with you on all fronts. We always go the extra mile for our (potential) clients, truly analyze all possibilities and, when necessary, always think outside the box.

In this way, we ensure that we can achieve what others cannot. In other words, we are fully dedicated to helping you obtain the best mortgage or loan that suits you perfectly and, of course, aligns completely with your situation and preferences.

Do you also want an advisor who looks outside the box and really analyzes all the possibilities for you? Then contact our experienced and enthusiastic team soon.

We are available to you 24 hours a day with the utmost commitment and sincere attention. An e-mail is a snap to info@nobelhypotheken.nl or call or app to 06-54770122.