ABN AMRO helps inform homebuyers and homeowners of foundation risks

Many houses in the Netherlands were built on wooden or shallow foundation piles. These foundations are vulnerable to drought and groundwater fluctuations, meaning the wooden piles can rot and the homes eventually sag. It’s clear that climate change increases the likelihood of foundation damage. In fact, estimates show that nearly 900,000 homes in the Netherlands are at higher risk. “Owners and buyers are often unaware of this,” says Patrick Wijsman, Lead of Sustainable Living at ABN AMRO.

Signs of foundation damage

Patrick continues, “It’s important that clients understand the potential risks to their foundations.” The bank has published a dedicated information page on its website, where buyers and homeowners can find information on signs of foundation damage. There’s also a link to a practical step-by-step plan from the Kennis Centrum Aanpak Funderingsproblematiek (Knowledge Centre for Tackling Foundation Problems). Patrick says, “We share our expertise on foundation risks and on financing options for repairs with our mortgage advisers and independent intermediaries. They can then give homeowners and buyers solid advice on the best solution for their situation.”

By sharing more information, the bank aims to raise awareness of potential foundation damage among owners and buyers alike. “A stuck window, cracks in the wall, a sagging floor or creaking noises can all be signs of foundation problems,” says Huub Hamer, a Sustainable Living business consultant at ABN AMRO. Here the bank is particularly focused on buyers. After all, buyers are responsible for determining the structural integrity of the house they are looking to buy. But buyers may lack the necessary knowledge or be under time pressure because of the housing shortage. “In today’s overheated market, some buyers are willing to accept certain risks. That’s especially true of first-time buyers,” admits Huub.

High costs

Buyers also rely on a home inspection for important information. An inspection may indicate damage, but only a specialist foundation survey will give the full picture. Unfortunately, many buyers opt to forgo the survey, mainly because of the high cost involved. But that can be risky because potential post-purchase issues may not be clear to the buyer, Patrick emphasises.

The cost of a full foundation repair generally ranges from € 30,000 to € 80,000. And the buyer usually foots the bill, “especially if the damage goes undiscovered and is not repaired in time,” Patrick says. Huub adds, “Homeowners don’t always have the means to cover these costs.”

A change in policy

Being unaware of potential foundation problems can lead to a steep and unexpected investment later on. That’s why ABN AMRO recently changed its policy. Patrick explains, “When we receive a mortgage application, we now assess whether the buyer can bear the cost of repair if we see a high risk of foundation problems. In this way, we hope to help prevent future problems.”

Sustainable Foundation Repair Fund

Homeowners who need to repair their foundations may be able to cover the costs by increasing their mortgage. And for clients who don’t earn enough to increase their mortgage, the Sustainable Foundation Repair Fund has a solution.

Huub says, “The Sustainable Foundation Repair Fund, which ABN AMRO partners with, is available in all Dutch municipalities starting this year. The fund offers loans on favourable terms to homeowners who need foundation repairs but can’t afford them or don’t have access to conventional financing.” Patrick concludes, “It’s a valuable safety net alongside conventional mortgage financing for homeowners struggling with foundation problems.”