Are You Eligible for the Flemish Renovation Loan?
If you own a property in Flanders and wish to renovate it, you can apply for a low-interest loan as of September 1, 2022. This affordable loan is granted by the Flemish government as part of the MijnVerbouwLening (My Renovation Loan) program. Ministers Zuhal Demir (Energy) and Matthias Diependaele (Housing) aim to help low- and middle-income citizens make their homes more energy-efficient in order to better cope with rising energy prices.
Buying and renovating at the same time: Are you eligible?
No, the Mijn VerbouwLening is only for those who already own their home and want to make it more energy-efficient. It is not available to new homeowners. However, since last year, they can apply for a 0% renovation loan from the Flemish government if they improve their home’s energy performance within five years.
To be eligible for the MijnVerbouwLening, the home must be located in Flanders and be at least 15 years old at the time of application, unless the request is for a solar water heater, (hybrid) heat pump, or solar panels. In these cases, the home must have been connected to the electricity grid before January 1, 2014, or the environmental permit must have been granted at least five years earlier.
Can all households in Flanders benefit from this loan?
Only low- and middle-income households are eligible. For a single person, the annual gross income must not exceed €46,170. For a couple without dependents or a single person with one dependent, the limit is €65,960, increased by €3,700 per child. The administration considers the income stated on your most recent tax notice. If you are cohabiting or if only one partner owns the home, the non-owner’s income is not taken into account.
Yes, but only if you rent your property through a social rental agency. In that case, no income limit applies. However, the rent must not be too high, and you must offer a rent reduction for nine years. “Thus, the benefits are shared between the landlord, who improves the quality of their property, and the tenant, who sees their energy bill decrease,” explains Matthias Diependaele. In practice, rent cannot exceed €900 (€1,000 in city centers). The rent reduction depends on the loan amount.
What if you own an apartment in a co-ownership?
Many apartment buildings are undertaking major renovations to meet energy and climate targets for 2050. But if you own an apartment, you cannot unilaterally decide to replace the windows or roof. This decision must be made by the co-owners’ association. The association can apply for the MijnVerbouwLening and borrow up to €60,000 at a favorable rate for building renovations, plus €25,000 per apartment. The loan is repaid by the co-owners’ association through contributions from all owners or through available capital.
Additionally, from the end of 2022, apartment owners will be able to contact the Flemish government for help in developing a deep renovation plan for their building.
What about inheritance or property donation?
If you inherit or receive a property via donation and plan to renovate it within five years, and you belong to the low- or middle-income category, you can still apply—even if you do not intend to live in the home. This is valid until the end of 2024.
What is the loan amount and interest rate?
You can borrow up to €60,000, with a minimum of €1,250. The loan must be repaid within 25 years. The Energiehuis (where you apply) will assess what is reasonable based on your financial situation and repayment capacity. You must request the full loan amount no later than 36 months after signing the credit contract. If you miss this deadline, you cannot claim the remaining disbursements.
Initially, the loan is interest-free (0%). The MijnVerbouwLening program uses the statutory rate, updated annually in January and based on the one-year Euribor. The loan remains interest-free as long as the statutory rate is below 3%. Additionally, borrowers receive a 3% discount on the market rate. For this year, the statutory rate is 1.5%. No processing fees are charged by the Energiehuis.
What types of works are eligible?
You can borrow for works covered by the MijnVerbouwPremie program. This is the new unified premium replacing the old renovation grant and most of the network operator Fluvius’ energy-saving investment grants. Eligible works include roof renovations, exterior walls, exterior joinery, floor and foundation renovations, interior renovations, electrical and plumbing systems, (hybrid) heat pumps, thermodynamic or solar water heaters, condensing gas boilers (only for low-income applicants), and solar panels. Demolition and reconstruction works are not eligible.
Only invoices dated after the credit application are considered. Transitional measures apply: for applications submitted by November 1, 2022, invoices dated from July 1, 2022, may be accepted.
Do you need to hire a contractor?
Yes, most works must be carried out by a certified contractor. You may only carry out interior renovations, electrical, and plumbing work yourself. There is no requirement regarding energy level (E-level) or performance, but the work must be eligible under the MijnVerbouwPremie program.
How to apply?
You must apply through one of the 18 Energiehuizen. Find your nearest Energiehuis at mijnenergiehuis.be. Applications can be submitted until the end of 2026. If your renovation qualifies for a premium, the Energiehuis will apply for the MijnVerbouwPremie on your behalf and use it for early repayment of your loan.
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SOURCE: L’Écho, 10/09/2022
