The amount that can be included in your mortgage is primarily based on your income, your financial commitments and the value of your home. A surveyor establishes what the value of your property will be after renovation.
The amount you can borrow in a building fund account for your new-build property or renovation project depends on:
The bank sets up a building fund account and pays in the loan amount required for the renovation or construction of your home or the installation of energy-efficiency measures. If this amount is less than €7,500 and you have a mortgage without the National Mortgage Guarantee (Nationale Hypotheek Garantie or NHG), we will transfer the amount directly to you. You won’t need to send us any bills, but you will need to keep them, as the tax authorities may ask to see them. If your loan is for energy-efficiency measures, we will not transfer the money to you - it will be paid into a building fund account, even if it is less than €7,500.
The initial building fund account term is 1.5 years. After around 15 months, we will notify you that your building fund account is due to expire soon. You will then be able to extend the term by 6 months, giving a maximum term of 2 years.
If you choose to extend your building fund account term, you will not receive any interest on the building fund account balance during the last 6 months of the loan term. Find out more about extending your building fund account term.
The money in your building fund account can only be used for the construction or renovation of your home, or for energy-efficiency measures — specifically, the expenses for all 'fixed' elements of your home. These are things that you cannot take with you if you move house. For example, a tiled bathroom floor can be paid for from the building fund account, but curtains cannot. Contractor or electrician’s bills can also be paid for from the construction account. If you are unsure whether certain expenses can be paid for from the building fund account, be sure to check this with us in advance.
The rate for interest you receive on your building fund account is the same as for the interest you pay on your mortgage. If your mortgage is made up of various loan parts with different interest rates, we will use an average of these interest rates. The interest you receive will be deducted monthly in retrospect from the interest you pay on your loan. You will receive interest on your building fund account for 1.5 years. If you have a building fund account for a longer period, you will stop receiving interest after the first 1.5 years.
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