Did you know? The Walloon Region can subscribe for you and at its expense, with an approved company, an insurance policy against the loss of your income. The insurance is completely free, and the beneficiary will not have to reimburse any amounts possibly paid by the company in execution of said insurance. It is therefore a significant guarantee to meet the financial commitments related to your mortgage loan.
What is income loss insurance?
Income loss insurance is insurance that guarantees its beneficiaries an intervention in the repayment of their mortgage loan, in case of total and involuntary job loss, total incapacity for work, or availability.
Reimbursements will be limited based on the income loss suffered.
In what cases can you benefit from it?
You can benefit from income loss insurance if you take out a mortgage loan for the purpose of:
- Building or buying a new home in the private sector (purchase of a house, a turnkey apartment, a shell construction);
- Buying a home in the public sector (for example, sold by the SNCB, a municipality, the CPAS);
- Buying an existing home in the private sector and carrying out rehabilitation work covered by the loan for a minimum amount of €7,500 excluding VAT;
- Carrying 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 contracted exclusively by the applicant and their future spouse or potential partner;
- The mortgage loan must be in the first rank. However, a second-rank loan can be covered in case of construction or renovation if the first-rank loan was used to finance the purchase of the land or housing 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 application submission or the signing of the loan deed, if it is later. The law requires either that you work at least part-time under status or under a permanent contract, or that you are self-employed as a main occupation, or that you hold a temporary job at least part-time in education, with a minimum service seniority of 8 years.
- Your home must be located in the Walloon Region and must be primarily intended for habitation. 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-year period preceding this date, the applicant and/or their (future) spouse or partner – even if they do not appear in the loan deed – cannot, alone or together, own or have owned another home in full ownership or full usufruct. However, an exception is allowed if the home is recognized as non-improvable or uninhabitable.
- The applicant and their (future) spouse or partner must commit not to sell or rent the home in whole or in part, to establish their main residence there, and to consent to control by the Administration of compliance with the aforementioned commitments.
What is the extent of the coverage?
Income loss 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 an income loss occurring during the first 8 years of the loan.
What is the procedure to follow?
Your complete file must be submitted to the Public Service Wallonia (Housing Department), no later than 6 months after the signing of the authentic loan deed.
For more information on our mortgage loans, visit our section /solutions-credit/solutions-immo/pret-hypothecaire