Loans and state aid to improve the energy efficiency of our home or community
Both for safety and for energy saving, old homes need reform sooner or later. Not only for aesthetics, then, deficient electrical, gas and water systems can generate serious problems or accidents such as fires or floods. In addition, adapting our house to an efficient consumption allows us to save in the long run and help to improve the environment. However, this type of works usually have a cost for which we may not have money now and need to resort to loans or other aid . Today we are going to see two types of financing: a state one through the Housing Plans and another one of private capital through loans.
Program 5 of the State Housing Plan 2018-2021
The Ministry of Development has presented the State Housing Plan 2018-2021 through Royal Decree 106/2018, of March 9. This provides various aids for rent, for people in situations of eviction or for young people, for example. In total there are 9 different programs. Program 5: Promotion of the improvement of energy efficiency and sustainability in housing is what interests us for the topic that we are going to discuss today. The main features of this program are:
- Aid aimed at improving energy efficiency and the sustainability of single- family homes and buildings.
- Who can request them? Owners of single-family homes, apartments and entire buildings, both natural and legal persons. They can also request communities of owners, cooperatives, construction or rental companies and energy services companies.
- Some requirements: priority to homes prior to 1996. In addition, they are required to be habitual and permanent residence of the owners or tenants . In the case of buildings, at least 50% of the houses must be habitual homes. We must also present a technical report that proves the need to reform the house.
- Amount of aid: for single-family homes, it will not exceed 12,000 euros or 40% of the eligible investment . When income in the single-family home is less than three times the Public Indicator of Income of Multiple Effects (IPREM), the aid may reach 75% of the investment. As for the aid allocated to buildings, the amount to be granted will not be greater than multiplying 8,000 euros for each dwelling . In addition, it can not exceed, on the other hand, 40% of the investment of the action.
These features are very general and the aids contemplate other peculiarities, so if we believe that our home falls within the basic parameters and conditions we can inform ourselves more thoroughly. In this way, we will know if we are possible beneficiaries of these aids and we can rehabilitate our house making it sustainable.
Private equity reform loans are another option
If this state aid does not adjust to our reality or is not destined to our circumstances, almost all banks and private equity lenders have some reform loan that can help us finance the works of our house.
|Loan||Maximum quantity||Cost||Advantage||I’m interested|
|Cetelem Reform Loan||€ 60,000||From 5.95% TIN (6.12% APR)||
|P2P Loan Reform Younited Credit||€ 40,000||From 5.92% TIN (7.72% APR)||
|EVO Finance Personal Loan||€ 30,000||From 7.00% TIN (7.23% APR)||
Contemplating the different financing options for our reform can save us. In addition, we can combine both state aid plus loan reform. The ideal is to compare several options to make sure we choose the best one.