Are you eligible for the Flemish renovation loan?

If you own a property in Flanders and would like to renovate it, you can apply for a low-cost loan from September 1, 2022. This low-cost loan is provided by the Flemish government as part of the MijnVer-bouwLening (My Renovation Loan) project. Flemish ministers Zuhal Demir (Energy) and Matthias Diependaele (Housing) are aiming to help low- and middle-income citizens to make their homes more energy-efficient, in order to better protect themselves against rising energy prices.

You're buying and renovating at the same time. Are you eligible?

No, the Mijn VerbouwLening loan is only for people who already own their own home and want to make it more energy-efficient. It is not intended for new homeowners. 

However, since last year, they can apply for a zero-interest renovation loan from the Flemish government if they make their home less energy-intensive within five years.

To be eligible for the MijnVerbouwle-ning loan, the dwelling must be located in Flanders and be at least 15 years old at the time the application is submitted, unless the application is for the financing of a solar water heater, (hybrid) heat pump or solar panels. In this case, it is sufficient for the dwelling to have been connected to the electricity grid before January 1, 2014, or for the environmental permit to have been granted at least five years earlier.

Please note that not all households living in Flanders are eligible for this loan.

Only low and medium incomes are concerned. For a single person, gross annual income may not exceed 46,170 euros. For a couple with no dependants (i.e. children) or a single person with one dependant, the ceiling has been set at 65,960 euros. This amount is increased by3,700 euros per child. In concrete terms, the tax authorities take into account the income shown on your last tax return. If you live as a de facto cohabitant, or if only one of you owns the property, the income of the spouse who does not own the property is not taken into account.

Yes, but only if you rent your property through a social real estate agency. In this case, no income ceiling is taken into consideration. But the rent cannot be too high, and you must grant a rent reduction for nine years. Matthias Diependaele explains: "As a result, the benefits are shared between the lessor, who improves the quality of his property, and the tenant, who sees his energy bill go down. In practice, the rent cannot exceed 9oo euros (1,000 euros in city centers). The discount granted depends on the amount borrowed. What if you own an apartment in a condominium?

Many apartment buildings are undergoing major renovation work

to meet 2050 energy and climate targets. But if you're an owner

If you're the owner of an apartment, you can't decide on your own to replace your frames or roof.

This decision must be taken by the general meeting of co-owners. The latter can call upon

MijnVerbouwLening and borrow up to 60,000 euros at low interest rates for the

25,000 per apartment. The loan is

reimbursed by the condominium owners' meeting via the provisions paid by all condominium-owners.

capital. In addition, from the end of 2022, apartment owners will have to

They can also contact the Flemish government to help them draw up an in-depth renovation plan for their building. 

What about inheritance or real estate donation?

If you inherit a property or receive it as a gift and intend to renovate it within the next five years, you'll need to know that you fall into the low- or middle-income category. You can apply even if you don't intend to live in the property, until the end of 2024.

How much can I borrow and at what rate? 

You can borrow up to 60,000 euros, with a

minimum of 1,250 euros. You must repay the loan within a maximum of 25 years. The Energiehuis (where you must submit your application) will check, on the basis of your financial situation and repayment capacity, what is acceptable in your case. 

You must apply for the loan amount no later than 36 months after signing the credit agreement. If you exceed this time limit, you will no longer be able to request further instalments.

The MijnVerbouwLening program operates on the basis of the legal interest rate. This is communicated in January of each year and is based on the one-year Euribor. The loan will be free as long as the legal rate is below 3%. The applicant also benefits from a three percentage point reduction on the market rate. For this year, the legal rate is 1.5%.

Energichuis does not charge any processing fees.

What work is taken into consideration?

You can borrow for work covered by the Mijn VerbouwPremie program. This is the new unified bonus that replaces the old renovation bonus and most of the bonuses granted by network operator Fluvius for investments designed to reduce energy bills.

energy efficiency. In concrete terms, this means renovation of the roof, external walls, external joinery, renovation of floors and foundations, interior renovation, electrical and sanitary installations, a heat pump (hybrid), a thermodynamic water heater, a solar water heater, a gas-fired condensing boiler (only for low-income earners) and photovoltaic panels. You cannot obtain a loan for demolition or reconstruction work.

Only invoices issued after the credit file has been submitted will be taken into consideration. Measures

transitional arrangements have been made: for files submitted by November 1, 2022 at the latest, it is possible to submit invoices dated from July 1, 2022 onwards.

Do you need a contractor?

To be eligible, however, you must have most of the work carried out by a licensed contractor. You can only carry out interior renovation work yourself,

electrical and plumbing. There are no requirements in terms of level E or energy performance, but the work must be eligible under the

MijnVerbouwPremie.

How to submit your application

The application must be submitted to one of the 18 Energichuizen. You can find. your nearest Energiehuis on the mijnenergiehuis.be website. You can apply for a credit until the end of 2026. If the renovation work you intend to undertake is eligible for a bonus, the Energiehuis will apply for the MijnVerbouwPremie on your behalf and use it to repay your loan early.

SOURCE L'écho 10 09 2022