To pay for a renovation in the Netherlands in 2026, you have roughly four routes: your own savings, increasing the mortgage on the home you live in, financing the work as part of your purchase through a construction deposit (bouwdepot), or, for energy-saving measures, an Energiebespaarlening from the Nationaal Warmtefonds. Which route fits depends mainly on the work you have in mind and whether you are still buying the home or already live there.
The routes side by side
| Route | When | What for | Keep in mind |
|---|---|---|---|
| Construction deposit at purchase | You are buying the home | Renovation and energy-saving work | Mortgage based on the value after renovation |
| Increase your mortgage | You already live in the home | Renovation and energy-saving work | New check of income and property value |
| Warmtefonds Energiebespaarlening | Existing home you live in yourself | Energy-saving measures only | € 1,000 to € 29,000, separate from your mortgage |
| Own savings | Always | Anything | No loan and no assessment needed |
Financing the work when you buy
If you are buying a home you want to renovate straight away, you can include the renovation in the mortgage. That amount goes into a construction deposit and is only paid out when you submit invoices. The lender then works with the value of the home after the renovation, so you need a valuation report that states both values. How claims, deposit interest and the two-year tax rule work is explained in How does a construction deposit (bouwdepot) work?
Increasing your mortgage when you already live there
If you already own and live in the home, increasing the mortgage is the usual route for a larger renovation. The lender assesses you again. Under the Dutch mortgage lending rules (Tijdelijke regeling hypothecair krediet, 2026), the total mortgage may not exceed 100 percent of the property value, or 106 percent if the money goes to energy-saving measures. Your income also has to cover the new monthly costs, and for measures such as insulation or a heat pump the lender may allow extra room. How much depends on the energy label; see Borrowing extra for energy-saving measures.
You agree a separate interest rate and fixed-rate period for the new loan part. Your existing loan parts continue under their original terms, unless you refinance the whole mortgage. Whether that pays off depends partly on your current rate and any early repayment penalty.
If you have Nationale Hypotheekgarantie (NHG), the increase can also come with NHG. The conditions for 2026 on nhg.nl: the increase must be with the same lender, the outstanding debt may not exceed the market value, and the existing mortgage plus the increase may not exceed the NHG limit of € 470,000 together. The lender holds the renovation money in a deposit.
Borrowing from the Warmtefonds
If the work is purely about making the home more energy efficient, you can also borrow from the Nationaal Warmtefonds. The Energiebespaarlening is for owners of an existing home who live there themselves; it does not apply to new builds. You borrow at least € 1,000 and at most € 29,000, over 7, 10 or 15 years, and over 20 years if you borrow more than € 15,000. If your combined taxable income (verzamelinkomen) is below € 60,000 gross a year, the interest can be 0 percent. Above that, you pay the rate the Warmtefonds publishes on its website (warmtefonds.nl, consulted November 2026).
The Warmtefonds lists more than 20 measures, including roof and floor insulation, a heat pump, solar panels and a home battery. A new kitchen or bathroom is not among them. The money goes into a construction deposit from which you pay the contractor.
Tax relief on a renovation loan
Interest on a loan for your own home is deductible if you spend the money on things permanently attached to the home. The Dutch Tax Administration mentions, among others, a new kitchen or bathroom, window frames and windows, parquet flooring, maintenance painting, solar panels, insulation and landscaping the garden. You must repay the loan within 30 years on at least an annuity or linear basis; an interest-only loan gives no deduction. With an increase, the 30-year period starts again for the amount you add, while the original loan keeps its own term.
Without a deposit, you may deduct the interest on the full renovation loan for the first 6 months. After that, only on the part you have actually spent on the renovation, so keep all invoices and proof of payment. If you previously sold a home with equity, the bijleenregeling may limit your deduction; see Calculating your home equity and using it for your next home.
An example from Almere
This example is indicative and based on the 2026 rules. The amounts are assumptions.
A couple has lived in a 1990s terraced house in Almere Haven since 2018. They want a new bathroom costing € 20,000 and cavity wall and floor insulation costing € 8,000 together. Their combined taxable income is € 75,000.
The bathroom falls outside the Energiebespaarlening, so they could pay for it by increasing the mortgage if their income and the valued property allow it. For the insulation they have a choice: include it in the same increase, using the extra room the energy label gives, or borrow separately from the Warmtefonds. Because their income is above € 60,000, they would not get 0 percent there. Which combination works out cheaper per month and over the full term depends on the rate they get on the new mortgage part and how quickly they want to repay. Whether a lender grants the increase depends on their full situation.
How we help
We put the routes for your renovation side by side using your own figures, including what you can deduct for tax. You can read more about our approach on renovating and making your home sustainable and on mortgage advisor in Almere. We advise in English or Dutch.
Planning a renovation? Book a free introductory meeting at our office on Schoutstraat in Almere, and we will work out together what is possible in your situation.