Home Improvement Mortgage Applications Surge 59% as Energy Prices Rise

Something significant is happening in the Dutch housing market. In March alone, mortgage applications for home improvements jumped by 59 percent compared to the previous month. That is not a gradual trend. That is a spike, and it tells you something important about how homeowners in the Netherlands are responding to rising energy costs.

If you own a home here, or you are planning to buy one soon, understanding this shift matters. Because the motivations behind it, the financial tools available, and the decisions being made right now could directly affect your own situation.

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Why Are So Many Homeowners Investing in Their Properties Right Now?

The short answer is energy prices. Geopolitical tensions in the Middle East have pushed energy costs higher, and Dutch homeowners are responding by accelerating investments in energy efficiency. Insulation, solar panels, heat pumps, and double glazing are at the top of the list.

This is not an entirely new story. Since the energy crisis triggered by the war in Ukraine in 2022, applications for home improvement mortgages have been growing steadily. In 2024, applications rose by 22 percent. In 2025, by another 17 percent. The March 2026 spike of 59 percent represents a sharp acceleration of that existing trend.

The underlying logic is clear: homeowners have seen firsthand how vulnerable they are to energy price volatility. Reducing your home's dependence on the grid is not just an environmental decision anymore. It is a financial one.

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Who Is Driving the Surge?

The data shows two groups leading the charge:

Homeowners aged 25 to 35. This group saw the largest increase in applications last year, up 28 percent. Younger buyers who recently purchased properties are investing early to reduce long-term running costs and increase the value of their homes.

Homeowners aged 55 and over. This group saw a 20 percent increase in applications. Many older homeowners have significant equity built up in their properties and are using that equity to fund improvements that reduce their monthly expenses in retirement.

There is also a broader market dynamic at play. With the Dutch housing market remaining tight, many households are choosing not to move. Instead, they are improving what they already have. Why deal with the stress and cost of buying a new home when you can make your current one better?

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How Are Homeowners Financing These Improvements?

This is where it gets practically useful, because the financing options available in the Netherlands are genuinely attractive right now.

Using Your Home Equity

If you bought your home a few years ago, there is a good chance its value has increased. That difference between what your home is worth and what you still owe on your mortgage is your equity. Many homeowners are unlocking this equity through a second mortgage or a top-up on their existing mortgage to fund energy-saving improvements.

Borrowing Above 100% of Your Home's Value

Under Dutch mortgage regulations, it is normally only possible to borrow up to 100 percent of the value of a property. However, there is an exception for energy-saving investments. When you are financing insulation, solar panels, a heat pump, or other qualifying improvements, you can borrow up to 106 percent of your home's value.

This is a meaningful rule that many homeowners are not aware of, and it can make the difference between being able to fund a renovation or not.

Better Mortgage Terms for Low-Energy Homes

Homes with a poor energy label (such as an E, F, or G rating) can sometimes qualify for additional borrowing capacity specifically to fund improvements that bring the rating up. Lenders increasingly recognize that energy-efficient homes are lower-risk assets, and some offer more favorable mortgage terms to reflect this.

Government Subsidies

The ISDE subsidy (Investment Subsidy for Sustainable Energy and Energy Saving) is one of the main national schemes that helps homeowners offset the cost of heat pumps, solar boilers, and insulation. Local municipalities also run their own incentive programs. These subsidies can meaningfully reduce your upfront investment, lowering the amount you need to borrow.

Stacking a well-structured mortgage with available subsidies is increasingly how smart homeowners are approaching this. The combination can make improvements significantly more affordable than they appear at first glance.

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The Barriers That Are Still Holding People Back

Despite the surge in applications, more than half of all homeowners in the Netherlands still report barriers to making energy improvements. The two most common obstacles are:

Lack of knowledge about financing options. Most homeowners simply do not know that they can borrow up to 106 percent of their home's value for energy improvements, or that subsidies exist to reduce upfront costs. This is a knowledge gap, not a financial one, and it is one that an independent mortgage advisor can close in a single conversation.

Uncertainty about changing regulations. Subsidy rules, energy label requirements, and mortgage regulations in the Netherlands do change. Homeowners worry about committing to an investment based on current rules, only for those rules to shift before they complete the work. This concern is understandable, but it should not be a reason for inaction. A good advisor can help you understand what is locked in versus what might change, and plan accordingly.

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What Does This Mean for Expats?

If you are an expat who owns a property in the Netherlands, this trend is directly relevant to you. Energy costs affect everyone equally, and the financial tools available to reduce them are available to you too, regardless of your nationality or visa status.

However, navigating Dutch mortgage regulations and subsidy systems can be more complex when your income or employment situation is less straightforward. Some lenders are more flexible than others when it comes to expat mortgage applications, and an independent advisor who understands your specific circumstances can help you find the right fit.

If you are still renting but planning to buy, it is also worth knowing that energy label requirements are increasingly factored into mortgage affordability assessments. Buying a home with a good energy rating gives you more flexibility in what you can borrow.

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What Does This Mean for First-Time Buyers?

If you are buying your first home, energy efficiency should be part of your decision-making process from the start. A property with a poor energy label may come with a lower purchase price, but factor in higher monthly energy costs and the investment required to bring it up to standard.

The good news is that if you do buy a less efficient property, the 106 percent borrowing rule means you may be able to finance the improvements as part of your mortgage. This is worth discussing with your advisor before you make an offer, so you understand exactly what your total costs will look like.

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A Practical Checklist for Homeowners Considering Improvements

Check your current energy label. If you do not know your home's energy rating, look it up on the Netherlands' official energy label register. Your label determines what improvements will have the most impact and what financing options are available to you.

Get a quote for the work. Before approaching a lender, get realistic estimates for the improvements you want to make. Insulation, solar panels, and heat pumps all vary significantly in cost depending on your property.

Explore available subsidies first. Check the ISDE scheme and your local municipality's website before finalizing your budget. Subsidies reduce the amount you need to borrow and can meaningfully change what is financially viable.

Speak to an independent mortgage advisor. This is genuinely the most important step. The rules around borrowing above 100 percent, energy label requirements, and which lenders offer the best terms for home improvement mortgages are not straightforward. An advisor who works across the whole market can find options that a single bank cannot offer.

The Bottom Line

The 59 percent surge in home improvement mortgage applications is not just a statistic. It reflects a real shift in how Dutch homeowners are thinking about their properties. Energy independence is becoming a financial priority, and the tools to achieve it, mortgages, subsidies, and favorable regulations for energy improvements, are available right now.

The main barrier is not money. It is knowledge. And that is exactly the kind of barrier a good independent mortgage advisor exists to remove.

If you are a homeowner in the Netherlands considering energy improvements, or an expat or first-time buyer trying to understand how energy efficiency affects your mortgage options, we would be happy to walk you through the numbers and help you make a decision that works for your specific situation.

Reach out to Financial Consultancy Holland. We are independent advisors with deep knowledge of Dutch mortgage regulations, and we work entirely in your interest. Let us help you make the most of what is available to you.

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Contact Financial Consultancy Holland:

Email: info@fc-holland.nl

Phone: 0622870981

Address: Boompjes 40, 3011 XB Rotterdam