Mortgage with building fund account

Building fund account for your home renovation or new-build home

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What is a building fund account?

A building fund account is a separate bank account to which all or part of your mortgage loan is transferred. You use the funds in the building fund account to pay for the construction or renovation of your home. Calculate what the bank would be willing to lend you for your new home or read on for more details on a building fund account.

Useful information if you already have a building fund account

Managing your building fund account

If you want to know which invoices you can pay using your building fund account or what conditions an invoice is subject to, you can consult the details of your building fund account.

Submitting an invoice

Use the step-by-step plan to conveniently submit invoices online via Internet Banking. This is a quick way of submitting your invoices, so that you are not distracted from building or renovating your home.

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Useful information about a building fund account

  1. Your mortgage, including the costs for the construction or renovation of your home is not allowed to exceed 100% of the value of your home after renovation.
  2. However, your maximum mortgage is 106% of the value of your home if you spend the amount in excess of 100% of the value on energy-efficiency upgrades of your home.
  3. A valuer will determine the value of your home after renovation.
  4. You can use the building fund account to pay for items fastened to the building, such as a kitchen, bathroom or a new floor, but you cannot use it to finance such items as household effects.
  5. You can also use the building fund account to pay your contractor or electrician.
  6. A building fund account is active for 18 months. This term is open for renewal once, by between six months and two years.

What is the difference between a building fund account for a new-build and a home construction account for renovation?

Building fund account for a new-build

We will pay any amounts specified in the instalment schedule of the purchase and building contract directly to the contractor or supplier. You are expected to submit invoices for contract extras that are not taken care of by the contractor. We will pay the related amounts to you.

Building fund account for renovation

We will pay invoices for renovation works to you. You pay the contractor or the supplier yourself. We will transfer the amount to the bank account you use to make your monthly mortgage payments.

Frequently asked questions about a building fund account

How much will the bank allow me to borrow?

The amount that can be included in your mortgage is primarily based on your income, your financial commitments and the value of your home. A surveyor establishes what the value of your property will be after renovation.

The amount you can borrow in a building fund account for your new-build property or renovation project depends on:

  • The mortgage you have for your current home, if applicable
  • The value of your current home and any surplus value
  • Whether or not you are able to pay back a new or existing mortgage loan
  • The amount you are allowed to include in your mortgage for the renovation
What amount will be transferred to a building fund account?

The bank sets up a building fund account and pays in the loan amount required for the renovation or construction of your home or the installation of energy-efficiency measures. If this amount is less than €7,500 and you have a mortgage without the National Mortgage Guarantee (Nationale Hypotheek Garantie or NHG), we will transfer the amount directly to you. You won’t need to send us any bills, but you will need to keep them, as the tax authorities may ask to see them. If your loan is for energy-efficiency measures, we will not transfer the money to you — it will be paid into a building fund account, even if it is less than €7,500.

How long will a building fund account be active for?

The initial building fund account term is 1.5 years. After around 15 months, we will notify you that your building fund account is due to expire soon. You will then be able to extend the term by 6 months, giving a maximum term of 2 years. 

If you choose to extend your building fund account term, you will not receive any interest on the building fund account balance during the last 6 months of the loan term. Find out more about extending your building fund account term.

What are the rules for making payments from a building fund account?

The money in your building fund account can only be used for the construction or renovation of your home, or for energy-efficiency measures — specifically, the expenses for all ‘fixed’ elements of your home. These are things that you cannot take with you if you move house. For example, a tiled bathroom floor can be paid for from the building fund account, but curtains cannot. Contractor or electrician’s bills can also be paid for from the construction account. If you are unsure whether certain expenses can be paid for from the building fund account, be sure to check this with us in advance.

How much interest do I owe on a building fund account?

The rate for interest you receive on your building fund account is the same as for the interest you pay on your mortgage. If your mortgage is made up of various loan parts with different interest rates, we will use an average of these interest rates. The interest you receive will be deducted monthly in retrospect from the interest you pay on your loan. You will receive interest on your building fund account for 1.5 years. If you have a building fund account for a longer period, you will stop receiving interest after the first 1.5 years.

Frequently asked questions about a building fund account

The amount that can be included in your mortgage is primarily based on your income, your financial commitments and the value of your home. A surveyor establishes what the value of your property will be after renovation.

The amount you can borrow in a building fund account for your new-build property or renovation project depends on:

  • The mortgage you have for your current home, if applicable
  • The value of your current home and any surplus value
  • Whether or not you are able to pay back a new or existing mortgage loan
  • The amount you are allowed to include in your mortgage for the renovation

The bank sets up a building fund account and pays in the loan amount required for the renovation or construction of your home or the installation of energy-efficiency measures. If this amount is less than €7,500 and you have a mortgage without the National Mortgage Guarantee (Nationale Hypotheek Garantie or NHG), we will transfer the amount directly to you. You won’t need to send us any bills, but you will need to keep them, as the tax authorities may ask to see them. If your loan is for energy-efficiency measures, we will not transfer the money to you — it will be paid into a building fund account, even if it is less than €7,500.

The initial building fund account term is 1.5 years. After around 15 months, we will notify you that your building fund account is due to expire soon. You will then be able to extend the term by 6 months, giving a maximum term of 2 years. 

If you choose to extend your building fund account term, you will not receive any interest on the building fund account balance during the last 6 months of the loan term. Find out more about extending your building fund account term.

The money in your building fund account can only be used for the construction or renovation of your home, or for energy-efficiency measures — specifically, the expenses for all ‘fixed’ elements of your home. These are things that you cannot take with you if you move house. For example, a tiled bathroom floor can be paid for from the building fund account, but curtains cannot. Contractor or electrician’s bills can also be paid for from the construction account. If you are unsure whether certain expenses can be paid for from the building fund account, be sure to check this with us in advance.

The rate for interest you receive on your building fund account is the same as for the interest you pay on your mortgage. If your mortgage is made up of various loan parts with different interest rates, we will use an average of these interest rates. The interest you receive will be deducted monthly in retrospect from the interest you pay on your loan. You will receive interest on your building fund account for 1.5 years. If you have a building fund account for a longer period, you will stop receiving interest after the first 1.5 years.

Reasons for taking out a mortgage from ABN AMRO

Schedule your appointment

Schedule your appointment online: same-day service, if available.

Video conferencing with an adviser

Where and whenever you like. Use your computer, smartphone or laptop.

Making changes to your mortgage yourself

Your options range from changing your interest rate to making additional repayments. Just use the ABN AMRO online self-service.