From 17.02 to 25.02.24, Batibouw, the renovation and construction fair, will be held. Real estate remains a safe investment in Belgium given the upward trend in market values. It is always a useful and profitable investment for Belgians. In this article, we provide some useful tips to best prepare your mortgage loan application.
What are the key elements to prepare your mortgage loan application?
Our credit brokers have nearly 20 years of experience in the mortgage market. Our goal is to analyze your application to offer you a solution in which you will feel comfortable for a period of 15 to 25 years. Indeed, it is important to remember that a mortgage loan is repaid over a long period. Therefore, it is crucial to choose a viable long-term solution so that you feel confident about the upcoming repayments.
The elements to consider are as follows:
- The amount, nature, and stability of your income;
- A statement from the National Bank of Belgium indicating that you are not listed for unpaid credit disputes;
- Your age as well as the amount and duration of the desired loan;
- Details of all your fixed expenses (other loans, for example);
- The cost of the property in relation to your financial profile;
- The personal funds you can contribute.
Are there different types of mortgage loans?
Indeed, in addition to the purchase of a property, the buyer must bear various additional costs. We are obviously referring to the credit deed costs and the unavoidable notary fees.
Thus, it is generally required for potential buyers to have personal funds to cover these costs. Indeed, the bank tends to only grant a loan corresponding to the market value of the property.
Reduction of registration fees for modest properties
There is a possibility to reduce your incidental costs. The law offers the possibility to reduce notary fees when buying your first house if it is a modest dwelling. The normal registration fee rate (12.5% or 10%) can be reduced to 6% or 5%.
The first condition to benefit from the fee reduction is to have a cadastral income of a maximum of €745. If this cadastral income is €746, the buyer will pay 12.5%.
This ceiling of €745 can, however, be increased for large families. It will be raised to:
- €845 for the buyer who has three or four dependent children,
- €945 if they have five or six dependent children,
- €1,045 if they have seven or more dependent children.
