Answers to your common questions regarding your credit contract – Your questions regarding mortgage credit

First, let us clarify that the mortgage is the guarantee which allows a bank to cover itself in the event that the borrower is no longer able to repay his loan. In fact, the borrower could not sell the property without obtaining approval and the release of the mortgage.

The bank has the right to cancel the credit in the event of non-payment, to have the property sold during legal proceedings and to recover the balance of its debt from the proceeds of the construction of the building.

On the other hand, in the event of early repayment of your mortgage loan, the notary is required to request the release of the mortgage. Release is a legal act where the bank certifies that the borrower has fully repaid their loan.

This release is done by notarial deed which therefore generates notary fees. In practice: the release of a mortgage is only essential if you decide to sell the building. Otherwise, just let time pass to get the 30-year period to expire. In this case the mortgage will disappear automatically but this time without any costs.

Granting a loan/mortgage credit generates various costs:

Registration fees which is a tax.
Credit opening. This is a tax paid to the State by the Notary when registering the deed for the conservation of mortgages.
Notary fees (rates are set by law).
Real estate expertise (varies depending on the credit organization).
Bank application fees (vary depending on the credit organization and the capital borrowed).
Miscellaneous costs (search costs, stamps, etc.).
These fees vary depending on the amount of your loan.

The duration of the credit can be spread over a period of 10 to 30 years depending on the age of the borrower(s) and the amount of the loan.

Over this duration, two cycles can be distinguished:

the “depreciation(s) of capital” i.e. repayment of capital to the credit provider. In a word, the repayment of the amount lent to you.
the “interest” that must be paid by the borrower.
It is always in your interest to repay the capital as quickly as possible and therefore to favor a fixed rate mortgage loan/credit for the shortest possible duration.

For what ? Because the more capital you repay, the less interest you will have paid upon closing the loan/mortgage credit contract.

This is an act generally drawn up by a notary or in certain cases a bailiff.

An authentic act is enforceable against third parties, that is to say that third parties or people who are not parties to the agreement cannot question the existence of the act.

To take out a loan/mortgage credit, you must necessarily go before a notary because the deed of sale and the loan/mortgage credit contract are notarial acts.

It is a right which allows a person to be preferred over other candidates for the purchase of real estate when it is put up for sale.

The beneficiary will therefore be preferred even if he makes an equal offer to the other buyers.

This is the unilateral commitment of a person to acquire property under certain conditions. The offer does not bind its recipient as such unless they expressly agree to it. In this case, the sales contract is formed.

These are clauses indicated in the sales agreement which condition the birth of the legal effects of the loan / mortgage credit contract on the fulfillment of one or more conditions stipulated concretely in the notarial deed. The condition being in this case obtaining the agreement of the bank. It is therefore above all a protection for the future buyer in the event that his credit request is refused by the banking organization.

Thus, when you sign your sales agreement, it will be subject to the suspensive condition that you obtain your loan/mortgage credit within the time limit set when signing the sales agreement before the notary or with the real estate agency.

Concretely, this means that if you do not obtain your loan / mortgage credit within the agreed deadline, it is void (cancelled) unless you obtain an extension of the deadline to obtain your loan / mortgage credit.

In this case, things are returned to their original state and each party to the sales agreement is released from their obligations. The seller could thus agree to sell his property to another candidate buyer who would sign a new notarized sales agreement.

At Crédit Populaire Européen, we are committed to giving you a quick response so that you can notify the seller as quickly as possible.

Yes, you can always decide to change notary during the sales procedure but the notary who will take over will only intervene after you have paid the fees of your previous notary in full. In this case, there will be a sharing of fees and costs.

The sale of new buildings is taxed differently. It is subject to VAT.
The sale price includes :

• field registration fees.
• the “construction” part, subject to VAT (21%).
• Notary fees and costs calculated on the total value must be added.

It is generally accepted that the total credit charges for a month should not exceed 33% of your monthly income for a single person and for certain banks. In certain other cases, the debt ratio for importable income can go up to 50% of household income.

At Crédit Populaire Européen, our specialists study your situation and will offer to repurchase and consolidate current loans so that you only have one loan to repay, guaranteed by a mortgage.

Yes, this is a right inherent in any type of loan.

Some banks do not require a contribution of funds from the borrower. However, if the bank has to finance the entire amount of the loan plus the costs of the notarial deed, it is possible that your interest rate will be higher than if you are able to make a prior contribution .

If you are not able to make a advance contribution, we invite you to consult our 125% mortgage loan solution.

Yes, but on the condition that the bank can take out a mortgage on real estate located in Belgium or Luxembourg.

You must first be divorced to consider this solution or have a property separation contract. You can take out a loan to buy out your former spouse’s share. If you have a mortgage loan in both names, you can continue to repay it alone if your income is sufficient to repay the initial monthly payment (decoupling of the loan), which requires the agreement of the lending bank. If the monthly payment proves too high, we could refinance the remaining balance of the mortgage loan over a longer term through another bank.

This is a possible operation but it necessarily involves costs. We advise you to redeem your loan/mortgage credit. We can study your file and offer you a better interest rate and thus buy back your current loan/mortgage credit. Contact our advisors for this purpose.

Any person residing in Belgium or Luxembourg, whatever their professional situation (employee, employee, liberal profession, self-employed, etc.) can apply for a loan / mortgage credit from European Popular Credit.

The minimum duration is set at 8 years and the maximum duration at 30 years and depends on the age of the applicant.

What is fixed interest rate?

In this formula, you benefit from an interest rate which will be identical for the entire duration of the execution of the loan / mortgage credit.

This is a particularly interesting formula when rates are low and likely to increase over time. Currently interest rates are historically low and this is therefore the ideal formula.

What is the semi-fixed interest rate?

In this formula, you benefit from a fixed rate for a period of 10 years and then a rate review takes place.

This formula is interesting when rates are likely to increase in the future.

What is the graduated interest rate?

In this formula, you repay more interest than capital. The monthly payments are linked to the index and increase by €30 to €40 every two years.

This is a particularly interesting formula for young people whose professional salary is expected to increase over the course of their career.