A renovation loan in the Netherlands is often arranged through a bouwdepot, a solution that allows you to finance home improvements as part of your mortgage.
In this guide, you’ll learn:
- what a bouwdepot is;
- when it’s the right option;
- how it works;
- what you can finance.
What is a bouwdepot?
A bouwdepot is a portion of your mortgage set aside for home improvements. These funds are specifically intended to upgrade or maintain the value of your property, rather than for general spending. This makes it a structured way to finance renovations with clear control over how the money is used.
How does a bouwdepot work?
A bouwdepot is a separate account linked to your mortgage, used to pay for renovation costs. Instead of receiving the full loan amount at once, the renovation budget is held by the lender and released step by step as you submit invoices.
In practice:
- you include a renovation budget in your mortgage;
- part of the loan is placed in a bouwdepot;
- you submit invoices for work or materials;
- the bank pays these costs from the bouwdepot.
The account is usually valid for up to 2 years, and you only pay interest on the amount used.
If you already have a mortgage, you can still arrange a bouwdepot by increasing your loan based on your home equity (overwaarde) or by refinancing your mortgage. The additional amount is then placed in a bouwdepot and used for your renovation.
What can you finance with a bouwdepot?
A bouwdepot can be used for a wide range of renovation and improvement works, such as:
- kitchen or bathroom renovation
- new flooring or walls
- roof renovation or extension
- windows and insulation
- solar panels or heat pump
- structural changes or extensions
Important:
The renovation must increase or maintain the value of the property — purely decorative expenses may not always qualify.
Bouwdepot vs. personal loan – what’s better?
If you’re considering financing a renovation, you typically have two options:
Bouwdepot (mortgage-based)
- Lower interest rate
- Longer repayment period
- Higher borrowing capacity
- Integrated into your mortgage
Personal loan
- Faster approval
- Less paperwork
- More flexibility in spending
In most cases, a bouwdepot is recommended if you are already buying a home, or you want to finance a larger renovation.
Why consider a renovation loan in the Netherlands?
Property prices in the Netherlands continue to rise, which means:
- investing in your home often boost value increases;
- energy-efficient upgrades can reduce monthly costs;
- you improve your living comfort without moving.
Instead of buying a new home, many homeowners choose to upgrade their current one.
The all-in-one service for internationals
At Domek, we make arranging a renovation loan or mortgage in the Netherlands simple and stress-free.
With more than 15 years of experience and a team of 100+ professionals, we help internationals understand their borrowing options, compare lenders, and find the solution that fits their situation.
Our advisors guide you through the entire process — from calculating your borrowing capacity and structuring your bouwdepot to comparing offers, explaining conditions, and preparing your application.
If your renovation is part of a home purchase, we handle all the formalities — before the purchase, during the process, and after the property transfer. We can also support you with insurance, utilities, and ongoing financial matters.
Call us today at 088 1021 500, send an email to info@domek.nl, or fill in the contact form.
