Did you know? The Walloon Region can take out an insurance policy against loss of income for you, at its own expense, with an approved company. The insurance is completely free, and the beneficiary will not have to repay any amounts that may be paid by the company under the said insurance. This is therefore a significant guarantee for meeting the financial commitments related to your mortgage loan.
What is loss of income insurance?
Loss of income insurance is insurance that guarantees its beneficiaries assistance in repaying their mortgage loan in the event of total and involuntary job loss, total incapacity to work, or layoff.
Reimbursements will be limited based on the loss of income incurred.
In what cases can you benefit from it?
You can benefit from loss of income insurance if you take out a mortgage loan in order to:
- Build or buy a new home in the private sector (purchase of a house, a turnkey apartment, a shell) ;
- Buy a home in the public sector (for example, sold by SNCB, a municipality, the CPAS) ;
- Buy an existing home in the private sector and carry out rehabilitation work covered by the loan for a minimum amount of €7,500 excluding VAT ;
- Carry out rehabilitation work in your home covered by the loan for a minimum amount of €16,150 excluding VAT ;
What are the conditions?
- The mortgage loan must be taken out exclusively by the applicant and their future spouse or cohabitant, if applicable ;
- The mortgage loan must be in the first rank. However, a second-rank loan may be covered in the case of construction or renovation if the first-rank loan was used to finance the purchase of the land or home and if the first-rank loan has not already been covered by such insurance ;
- You must have a stable professional situation at the date of the application or the signing of the loan act, if later. The law requires that you either work at least part-time under a permanent contract or status, be self-employed as a primary occupation, or hold a temporary job at least part-time in education, with a minimum service length of 8 years.
- Your home must be located in the Walloon Region and primarily intended for housing. The part of the home possibly used for professional purposes must therefore be less than 50% of the total area.
- At the date of the application and in the two years preceding this date, the applicant and/or their (future) spouse or cohabitant – even if they do not appear in the loan act – must not, alone or together, possess or have possessed another home in full ownership or usufruct. However, an exception is allowed if the home is recognized as non-improvable or uninhabitable.
- The applicant and their (future) spouse or cohabitant must undertake not to sell or rent the home in whole or in part, to establish their primary residence there, and to consent to the Administration’s control of compliance with the aforementioned commitments.
What is the extent of the coverage?
Loss of income insurance covers the payment of your loan up to a maximum of €6,200 per year, for a maximum duration of 3 years, and for a loss of income occurring within the first 8 years of the loan.
What is the procedure to follow?
Your complete file must be submitted to the Walloon Public Service (Housing Department) no later than 6 months after the signing of the authentic loan act.
For more information on our mortgage loans, visit our section /solutions-credit/solutions-immo/pret-hypothecaire
