Buying a property involves significant costs, so most Belgians are forced to apply for a mortgage. Nowadays, investing in a house is a wise decision. Indeed, the reason for this timely investment is partly due to the instability and unpredictability of various market stocks and bonds. Provision on real estate purchase agreement.
For example, since 1980, there has been a 10% annual increase in real estate value. Additionally, and historically speaking, interest rates in this area have never been as low as they are currently, with values around 3%. Thus, real estate represents a stable and lucrative investment in the Belgian market.
What is the 10% down payment?
In order to acquire a property, it is imperative to pay the notary a deposit equivalent to 10% of the total purchase value; this is to reserve the property and prevent its sale to another buyer during the time needed to secure a mortgage. These steps take some time before obtaining a bank’s approval, usually about a month.
What are the ordinary mortgage and the 125% mortgage?
The normal mortgage and the 125% mortgage are currently the only two mortgage loan options available. The 125% mortgage was introduced to help people with financial difficulties. It is not easy to cover the deposit for the property in cash to secure its reservation. Thus, the 125% mortgage is established as an ordinary loan for the total purchase price of the property, including the down payment. Additionally, it covers credit deed fees and notary fees. However, if this option is chosen, the interest rates will be slightly higher.
One notary or multiple notaries?
An authentic deed passed before a notary is mandatory in a real estate sale. Generally, the real estate transaction only requires the presence of one notary. Consequently, the buyer and seller’s opinions do not diverge regarding the choice of the notary for the authentic deed. Furthermore, both the buyer and seller agree to go to the notary’s office where the property is being sold.
In other cases, the buyer and seller may have multiple notaries. This solution presents no problem as notary fees are not doubled. Indeed, a law provides for the division of these fees in case of multiple notaries. Therefore, this option is not more expensive than the first.
What are the costs involved in buying a property?
Buying a property involves notary fees and credit deed fees. Notary fees consist of the purchase price of the property and registration fees, i.e., taxes imposed by the state when the notary deed of purchase is registered. These fees vary according to the sale price of the property, the region, and the cadastral income. Additionally, notary fees include the notary’s fees, which are assessed based on the value of the property and the amount of credit deed fees. These fees complete the total cost of notary fees, are associated with the mortgage necessary for the property purchase, and are registered at the mortgage office.
As for the credit deed fees, they are lower than the notary fees.
Simulate your costs…
To help you with your steps, Crédit Populaire Européen offers the possibility to simulate your costs to give you an idea of the total cost of the real estate transaction. Our website includes two simulators: one calculating the credit deed fees, the other evaluating the sales deed fees. However, note that these calculations are indicative and other elements may modify the final amount.
Regarding credit deed fees, simply indicate the amount of the loan. The simulator will evaluate the principal amount, accessories, registration fees, mortgage registration fees, and notary fees.
As for the sales deed fee simulator, it is possible to get a reduction on the registration fees if the house to be acquired is modest (depending on the cadastral income and the number of children).
