How to make a home more sustainable inthe Netherlands

A sustainable home creates a healthier environment for you, your family, and the planet. It also improves indoor comfort, lowers your energy bills, and increases your home’s value. But where do you start — and how do you finance it?

Here’s a simple guide to help you understand your options for making your home greener and more energy efficient.

Use savings or increase your current mortgage

There are several ways to finance a sustainable home. The most cost-effective option is to use your own savings, since borrowing money always comes with interest — even if the conditions are favorable.

If your savings are not enough, there are many subsidies, schemes, and mortgage options available that can make your home upgrade more affordable.

Subsidies for sustainable home improvements

The Dutch government encourages homeowners to make sustainable choices through the Investment Subsidy for Sustainable Energy (ISDE).

You can use this subsidy for:

• Connecting your home to a greener heating network

• Installing insulation

• Adding a heat pump

• Installing solar panels.

While the subsidy only covers part of the total costs, it can make a big difference and give you the financial boost you need to start your sustainable journey.

Goverment schemes

One well-known example is the Sustainability Loan (Duurzaamheidslening), provided through SVn — an independent, non-profit foundation. This loan allows you to borrow from your municipality at a favorable interest rate to make your home more energy-efficient. Not all municipalities participate, but many have similar programs.

Using your mortgage for sustainability

Another way to finance green improvements is through your mortgage. You can apply for a bouwdepot (building fund) with your current or a new lender to finance sustainable upgrades.

How it works

• You can borrow up to 106% of your home’s value if you use the funds for energy-efficient improvements.

• Not all lenders offer this, but many reward sustainability by offering lower interest rates on part of your mortgage.

• While mortgage interest rates are often lower than municipal loan rates, setting up a mortgage usually involves higher upfront costs, such as notary or advisor fees.

That’s why it’s smart to compare both options — a mortgage and a municipal loan — to see which gives you the best financial advantage.