Are you considering buying a house or any other real estate property? You will therefore take out a mortgage loan. You are absolutely right. First, because interest rates on mortgage loans have never been so low, but especially because the index jumps related to inflation have never been so frequent and significant. What impact, you might ask? The indexation of your rent, of course.
Looking closely, the rent you agreed to in 2008 ends up reaching significant amounts, whereas taking out a fixed-rate mortgage loan not only allows you to acquire the property but also to pay a fixed monthly amount until the final acquisition of your house. Let’s take a quick overview of the insurances that are highly recommended when taking out a mortgage loan.
“Loss of Income” Insurance
In case of loss of income or employment, the consequences on your ongoing mortgage loan can be dramatic. There are insurances that can protect you against this risk. These insurances meet specific conditions and are limited in time: generally, 12 months after the loss of your job. Contact us for more information.
“Outstanding Balance” Insurance
Essential in case of death to protect your co-borrower or your heirs. Thus, in the case of co-borrowers, if the coverage concerns 100% of the deceased person, the insurance covers the entire repayment. It should be noted that many banks require prior subscription to this “outstanding balance” insurance to accept your application.
Traditional Insurances
In Belgium, you cannot take out a mortgage loan without subscribing to fire insurance. In any case, once your property is paid off, it is essential to remain insured against risks that could affect your house.
Other insurance policies are highly recommended: insurance against furniture theft, insurance against water damage and natural disasters, for example, etc.