Bring your renovation projects to life with the Renovation Loan!

The Renovation Loan (or renovation credit) is a specific-purpose installment loan. The borrowed amount must be used exclusively to finance renovation, improvement, fitting-out, or energy-saving works in a property (house, apartment) that you own or sometimes rent (with the owner’s permission).

It can cover a wide range of projects, for example:

• Kitchen or bathroom renovation.
• Insulation work (roof, walls, floors), window replacement.
• Installation of a new heating system, solar panels.
• Attic conversion, extension, construction of a veranda.
• Painting, plumbing, electrical work.
• Exterior improvements (terrace, garden, fencing).

Proof (quotes, invoices) will be required.

In addition to the usual documents for a credit application (ID, proof of income and expenses), the Renovation Loan requires specific documents related to the planned works:

• Detailed and signed quotes from the contractors who will carry out the work. These quotes must clearly state the nature of the work, the materials used, and the total cost.
• Purchase orders for materials if you are doing part of the work yourself (conditions to be checked with the lender).
• Sometimes, architectural plans for large-scale projects (extensions, etc.).
• Once the work is completed (or in stages), paid invoices will be required for the release of funds or to justify their use.
• If you are not the owner of the property, written permission from the owner may be necessary.

Yes, absolutely! Financing works aimed at improving the energy performance of your home is one of the main reasons to take out a Renovation Loan. We often refer to it as a “Green Loan” or “Energy Loan”.

These loans can cover: insulation, replacement of windows with double/triple glazing, installation of solar thermal or photovoltaic panels, heat pump, condensing boiler, dual-flow ventilation, etc.

Specific advantages:

• Often lower interest rates: Many lenders, including CPE Crédit, offer preferential rates for energy-saving works, as they contribute to the ecological transition and can reduce your bills.
• Eligibility for regional/national grants: In Belgium and Luxembourg, various financial aids (grants, subsidies) are available to encourage these works. The Renovation Loan can help you finance the portion not covered by these aids.
• Increase in your property’s value: A property with a good energy performance certificate (EPC) sells or rents better and for a higher price.
• Reduction of your energy bills: The initial investment is eventually offset by savings on your heating, electricity expenses, etc.

Feel free to discuss your energy renovation projects with our advisors to find out the specific conditions.

The repayment term of a Renovation Loan is flexible and depends mainly on:

• The amount borrowed: The higher the amount (e.g., for a complete renovation or an extension), the longer the proposed term can be.
• The nature of the work: Certain structural or long-lasting works (such as a roof, high-performance insulation) may justify longer repayment terms.
• Your monthly repayment capacity: The term is adjusted so that the monthly payment remains in line with your budget.

Terms can commonly range from 24 months (2 years) to 120 months (10 years), or even 144 months (12 years) or more for large amounts and major projects, especially if they are linked to a mortgage loan.

It is important to note that a longer term reduces the monthly payment amount but increases the total cost of the credit (more interest paid). Your advisor will help you choose the optimal term.

The method of fund disbursement for a Renovation Loan can vary:

• Single disbursement: For smaller projects or if you are paying a contractor in one go, the funds can be released in full to your account or directly to the contractor, upon presentation of the signed quote and/or invoice.
• Progressive disbursements (in installments): For larger projects that span several months, it is common for the funds to be released in installments, as the work progresses and upon presentation of the corresponding invoices. This allows you to pay interest only on the amounts actually used and to better control the project budget.

The exact terms of fund disbursement will be specified in your Renovation Loan contract. Discuss this with your advisor to determine the most suitable solution for your project.

Yes, it is often possible to get a Renovation Loan even if you do part or all of the work yourself (DIY renovation). However, the conditions may be slightly different:

• Proof for materials: Instead of contractor quotes, you will need to provide purchase orders or invoices for the materials and equipment you will use (e.g., tiles, sanitary ware, insulation, specific rental tools, etc.).
• Possible cap on the amount: Some lenders may limit the amount that can be financed if the work is done entirely by you, as there is no professional guarantee.
• Eligible types of work: Major structural work requiring very specific skills or professional insurance (e.g., roof waterproofing, major electrical installations) may be more difficult to finance as a complete DIY project.
• Labor not financed: The loan will obviously not cover the cost of your own labor.

It is important to be realistic about your skills and the time required. Discuss your DIY renovation project with your CPE Crédit advisor. They will explain the specific proof you need to provide and the applicable conditions.