Are you considering purchasing a house or any other real estate? You will therefore take out a mortgage loan. You are absolutely right. Firstly because interest rates on mortgage loans have never been so low but above all because index jumps linked to inflation have never been so frequent and so significant. What impact, will you tell me? The indexation of your rent of course.
If you look closely, the rent that you accepted in 2008 ends up reaching significant amounts whereas taking out a fixed rate mortgage loan allows you not only to acquire the property but above all to pay a fixed monthly amount until upon the definitive acquisition of your house. Let’s take a quick overview of the insurance that is very advisable to take out when taking out a mortgage loan.
“Loss of income” insurance
In the event of loss of income or employment, the consequences on your current mortgage credit can be dramatic. There is insurance that can protect you against this risk. This insurance meets specific conditions and is limited in time: generally, 12 months after the loss of your job. Contact us for more information
“Outstanding balance” insurance
Essential in the event of death to protect your co-borrower or your heirs. So in the case of co-borrowers, if the coverage concerns 100% of the person who died, the insurance covers the entire reimbursement. Please note that many banks require the prior subscription of this “outstanding balance” insurance to accept your request.
Classic insurance
In Belgium, you will not be able to take out a mortgage loan without taking out fire insurance. Regardless, once your property has been repaid, it is essential to remain insured against risks that could affect your home.
Other insurance policies are strongly recommended: insurance against theft of furniture, insurance against water damage and natural disasters for example, etc.
