3 ways to get a sustainable mortgage for expats in Amsterdam


So-called ‘green mortgages’ provide benefits to buyers when a property is either already sustainable (with a specific energy label) or if there are renovations done to positively change the energy label of the property. In this article, we’ll break down three benefits of sustainable mortgages in the Netherlands.


\In an effort to slow down climate change, the Paris Agreement requires all signed parties (195 countries including the Netherlands) to reduce their greenhouse gas emissions by 45% by 2030 to achieve net zero by 2050. As part of the national climate plan, the Dutch government has stipulated that at least 1.5 million homes must be made sustainable by 2030. There are a number of initiatives in place, including subsidies, to make the shift to sustainability both attractive and attainable for homeowners and homebuyers. 


Let's get into the three ways you can qualify for a sustainable mortgage!


1. Better energy efficiency for your mortgage interest


An energy-efficient home is well insulated, uses heat pumps instead of gas, and uses solar panels contributes to climate change by reducing their emission of greenhouse gasses. In the Netherlands, every property has an energy label that determines how energy-efficient it is. This label is based on three main factors: 

  • How much energy does the property need per year to maintain a comfortable indoor temperature?
  • How much fossil fuel is used to heat the property per year (including appliances such as water heaters)?
  • What percent of energy in the property comes from renewable sources such as wind and solar?

The higher the energy label, the more efficient it is. 

In The Netherlands, many mortgage lenders offer lower interest rates if you have an energy-efficient home. In the current market, that difference can mean hundreds of euros per month depending on your mortgage. 


2. Lower energy costs for a larger maximum mortgage


We have seen the cost of living in the Netherlands go up by nearly 10% in just one year. Additionally, we are in a gas crisis which has raised gas prices exponentially. An energy-efficient home also provides property owners with financial benefits. To start, monthly energy costs are much lower for an energy-efficient home than one that is not. With proper insulation of the walls, roof, and windows, a property will use much less energy than a property that is poorly insulated. 

This is because a poorly insulated home will seep heat through the walls, roof, and windows, and require the heating to be on continuously. A well-insulated home, on the other hand, will keep the heat in and stay warm for longer periods of time. 

Insulating your property can help to improve your energy label and makes you eligible for lower mortgage interest rates. These two factors have a direct effect on the maximum mortgage you can borrow. 


3. Big (energy) plans for a bigger borrowing capacity


Properties with good energy labels are considered hot commodities on the housing market. They are often valued higher and sell fast. This makes the search for a home much more difficult for many people because the properties that stay on the market and are more affordable often have quite low energy labels. 

However, if you have plans to make the property you’re buying more energy efficient you can borrow 106% of the loan-to-value. The loan-to-value of a property is normally capped at 100%. 


Bottom line


Green mortgages include the above-mentioned various parts of the housing puzzle to provide benefits to property owners that play an active role in reducing greenhouse gas emissions. Do you want to know if you qualify for a green mortgage? Contact me today for a free consultation: https://www.teamconcepts.nl/en/contact-us 


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