If you are planning to renovate or expand your home and need additional financing, you can request a building loan facility along with your mortgage. At the point of doing your bank evaluation (taxatie) you will need to let the evaluator know what changes you want to make this is done by completing a “verbouwings specificatie” (renovation specification). This document should include detailed information about the renovations you plan to undertake, such as the scope of the project and estimated costs.
To add a “verbouwings specificatie” to your mortgage application, you will need to provide the following information to your lender:
- A detailed description of the renovations you plan to undertake.
- A breakdown of the estimated costs,
- This appraisal will take into account the current value of the property as well as the value of the planned renovations.
When looking at what you want to change on the home, keep in mind any permits or fees required by local authorities.
Once you have provided all the necessary information, the lender will review your application and determine whether to approve the additional financing. If your application is approved, in most cases the funds will be released in stages, as the renovations progress, and you will need to provide proof of completion for each stage before receiving the next instalment. Very important to consider that in some cases the lender will only cover 70% of the project and 30 % might need to be paid by you to the notary on registration of the building fund. This 30 % is paid over to the bank and held in the fund along with the 70% for the renovation project.
Adding a “verbouwings specificatie” to your mortgage application can be a great way to finance home renovations, but it’s important to carefully consider the costs and timeline of the project before applying for additional financing