Interest rates offered in the financial market are still low in Belgium. Federal State Encourages Households to Acquire Housing
The mortgage loan is attracting more and more households who wish to acquire or build their first home. The rates vary depending on the duration of the repayment. They are fixed, semi-variable or variable. Without the notary fees, the fixed rates offered are around 1.33% (10 years), 1.67% (15 years); 1.82% (20 years), 2.10% (25 years) at 3, 10% (30 years). But each financial institution sets the rate according to its convenience.
First advantage: accessibility
It is a long-term mortgage. Lenders require collateral and borrower insurance to secure repayment. For applicants who do not have sufficient collateral and a substantial personal contribution, the mortgage loan is of great help. It is accessible to any individual who does not exceed sixty and who has a good banking profile.
Second advantage: security
The plaintiff puts under mortgage a property that belongs to him. He can mortgage the house concerned. An expert appointed by the lender performs this assessment. The loan amount generally represents 80% of this value. The lender seizes the property and sells it at public auction to recover the capital in the event of default in repayment. Confident, the lender performs a safe transaction.
Third advantage: speed
Access to the mortgage is quick despite the procedures. You must, however, use a real estate broker. He knows all the cogs. You have to include his fees in the budget. Notarial fees and registration fees must be accounted for. Professional assistance is required.
Fourth advantage: the choice
Before transmitting the credit request, the borrower performs a simulation. There are specialized websites that offer a mortgage simulator in Belgium. This computer tool allows you to know the debt capacity, the amount, the APR, the monthly payments, the duration, the various costs. The simulator also helps to find out the best loan insurance offers and the best lender.
Fifth advantage: taxation
The federal-state offers new owners a tax reduction. The mortgage relates to a home that will be family housing. It is intended to buy or to build. In the Walloon Region, this housing bonus is replaced by the housing check. In the Flemish Region, the rate is 40%. In the Brussels Region, the housing bonus is also abolished. It is replaced by a 45% tax break.