Energy credit to finance your work
Are you planning work to improve the energy performance of your home? An energy loan could cover your expenses.
Discover the energy credit, its benefits and the conditions to benefit from it
In both new construction and renovation, it is important to consider energy costs. On the one hand, you contribute to the preservation of the planet. On the other hand, you save yourself heavy monthly expenses. But it is obvious that the developments represent a significant investment. That’s why the energy credit has been put in place. Thanks to the device, you benefit from an economical and perfectly comfortable accommodation.
What is the energy loan?
Also called, the energy credit is proposed by the banks and ready to finance the energy saving works. The applied rates vary between 0% and 2% for a capital that can cover several jobs simultaneously.
It is true that the energy loan generates expenses since you agree to repay it according to the terms agreed upstream. However, it offers you access to many benefits:
– invest in energy efficient equipment, it is to ensure you an economical housing. Your bills will automatically go down, which is excellent for your finances. In case of sale or rental, the energy saving works represent a non-negligible added value;
– Introduce a green loan application offers you the prospect of improving your comfort. You can solve insulation problems, acquire more efficient heating equipment, etc. ;
the facilities financed by the energy credit are beneficial to the planet insofar as the impacts on the environment are controlled.
How to get an energy loan?
The allocation of a loan to finance energy renovation works is not systematic. The profile of the borrower is carefully studied by the lending institution. It assesses your ability to repay the credit based on income. Note, however, that there is no minimum income tax required to qualify for this credit.
In addition, the green loan is part of what is called “assigned credit”. It can therefore only be granted to finance energy improvement works. This is why banks request copies of quotes before granting or denying the request.
In parallel, it should be known that there is work “eligible” for the green loan. These are developments aimed at reducing energy consumption. Are concerned :
– insulation work (roof, walls, windows …)
– the replacement of glazing by models that limit heat loss
– installation of a heat pump or other energy efficient heating system
– the implementation of ventilation solutions ensuring good energy performance for your home
– the adoption of renewable energies (solar panels, for example)
– purchase and installation of equipment to save water
– acquisition of a room thermostat
– the replacement of the existing lighting system with energy efficient products
– the realization of an energy audit
The green loan can be requested for work planned in your main residence or your second home. In both cases, it is imperative that the work be done by professionals. You can not apply for a green loan if you plan to renovate your home yourself.
Choose the offer that suits you
The majority of banks in Belgium offer green loans. But beware, not all offers are equal. It is therefore recommended to perform a simulation to find the best rate. In the same way, you have to compare several propositions. What are the conditions imposed by the bank? What is the maximum amount you can get? What are the repayment terms (loan term, monthly payments, etc.)? Is it possible to repay the credit before maturity? What percentage of the green loan must be allocated to energy renovations? These are all good questions that ensure optimal control of your budget. Indeed, too high a supply can cause complications in your management while a proposal too attractive can hide conditions which escape you.
Do not rush especially. The best way to make the right choice is to simulate and compare. Note that the proposals you receive do not commit you, as long as you do not sign a contract. You are therefore free to choose the lender whose offer best meets your expectations.