Financing your home renovation
Turn your renovation plans into reality. Discover your financial options.
Plan appointmentNeed more space?
Planning a major extension, installing a modern kitchen, or adding a new bathroom? Renovating is a fantastic way to increase both your living comfort and your property's value. But how do you pay for it? Whether you want to use your savings, increase your current mortgage, or take out a separate loan, we help you navigate the Dutch rules so you can fund your project smartly and affordably.
Why plan your renovation with Hanno?
- Honest advice: Mortgage vs. Personal Loan
- Maximize your Dutch tax benefits
- Avoid unnecessary notary and appraisal fees
- Construction accounts ('bouwdepot') valid for up to 3 years
The strict rules of a Dutch 'bouwdepot'
If you choose to finance your renovation through your mortgage, the bank places the money in a blocked construction account called a bouwdepot. From this account, you pay your contractor's invoices. However, banks are strict about what you can and cannot finance. Value-increasing projects like an extension or dormer are easier to finance fully. "Taste-sensitive" renovations, like a new kitchen or bathroom, are considered less value-retaining. Banks often only allow you to finance up to 65% of a kitchen's cost through your mortgage, meaning you must cover the rest with your own savings. Knowing these rules beforehand prevents you from running out of funds halfway through your project.
Finance your home renovation in 5 steps
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1. What is your budget?
A free orientation meeting will give you clarity.
Make an appointment Bel 030 - 208 2010
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2. Compare your options
We calculate whether using your savings, increasing your mortgage, or getting a personal loan is the smartest move.
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3. Your own financial mortgage plan
First we look at your situation, then at your mortgage.
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4. Choose mortgage lender
Based on your mortgage plan, we choose the best provider.
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5. Mortgage finalized and permanently in order
We arrange your construction deposit mortgage from A to Z.
Let us calculate your renovation
make an appointmentWe look beyond the standard mortgage
Because we are 100% independent, we don't just push you to increase your mortgage. For smaller renovations, a personal loan is often cheaper because you avoid notary and valuation (taxatie) costs. Furthermore, because we know from experience that renovations often face delays, we specifically partner with lenders that allow your construction account to stay open for 24 to 36 months. With Hanno, you won't have to stress about your budget expiring before the paint is dry.
Frequently asked questions
Yes, absolutely! In principle, the same mortgage rules apply to expats as to Dutch citizens. You can often increase your current mortgage or take out a second one. How much extra you can borrow depends on your income and the (expected) equity in your home. Our independent advisors know exactly which Dutch mortgage lenders offer the most favorable conditions for expats.
If you finance your renovation through a mortgage, the bank places the funds in a special construction account: the bouwdepot. You don't receive this money directly into your personal bank account. As soon as you receive an invoice from your contractor or a hardware store, you submit it to the bank. They will then pay the invoice directly from your bouwdepot. This is the standard and safest way to finance renovations in the Netherlands.
Yes, and often in a very positive way! If you benefit from the 30% ruling, your net income in the Netherlands is higher. Many Dutch banks take this higher net income into account, which means you can secure a higher maximum mortgage for your renovation. Keep in mind: not every bank does this, and the regulations are subject to change. We will figure out exactly which bank offers you the maximum financial benefit.
By Dutch law, the maximum mortgage you can get is 100% of your home’s value after the renovation. Because a renovation almost never increases your home's value by the exact amount it costs (for example, a €20,000 new kitchen doesn't automatically make your house €20,000 more valuable), you will almost always need to use some of your own savings to cover the difference. There is one exception: if you invest in energy-saving measures, you are often allowed to borrow up to 106% of the home's value.
This is a logical concern for many expats. Renovations that add square meters (like an extension or a dormer window) and energy-saving measures (which improve your energy label) generally yield the highest return on investment on the Dutch housing market when you sell. Taste-dependent investments, such as kitchens and bathrooms, usually yield a lower return. As your mortgage advisor, we look at your long-term financial picture: we help you assess whether the investment is a smart move for the years you live here, as well as for the moment you might sell your house.
Yes, in most cases they are! Just like your main mortgage, the interest you pay on the extra loan used for renovating or improving your primary residence is tax-deductible in Box 1 (income tax). However, this only applies to the parts of the loan actually spent on the house (e.g., a new bathroom or extension), not on movable items like furniture. We will help you ensure your financing is set up to maximize your tax benefits.
To get a renovation mortgage, you need an official appraisal report (taxatierapport) from a certified Dutch appraiser. You provide the appraiser with a list of your planned improvements and their estimated costs (a verbouwingsspecificatie). Based on this list, the appraiser will calculate two values for your home: the current market value and the expected market value after the renovation. The bank uses this second value to determine your maximum mortgage.