What are the key elements to prepare your mortgage loan application file?
Our credit brokers have nearly 20 years of experience in the mortgage loan market. Our goal is to analyze your request to offer you the solution in which you will feel comfortable for a period of 15 to 25 years. Indeed, it should not be forgotten that a mortgage loan is repaid over a long period. It is therefore essential that you choose a viable long-term solution so that you feel confident about the upcoming repayments.
The elements to consider are as follows:
- The importance, nature, and stability of your income;
- A statement from the National Bank of Belgium indicating that you are not listed for unpaid credit litigation;
- Your age as well as the importance and duration of the desired loan;
- The details of all your fixed charges (other loans, for example);
- The cost of the building in relation to your financial profile;
- The personal funds you can contribute.
Are there several mortgage loan formulas?
Indeed, in addition to the purchase of a building, the buyer must bear various costs that are then added to the purchase price. We are obviously referring to credit deed fees and the inevitable notary fees.
Thus, it is generally required for prospective buyers to have personal funds to pay the fees. 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 ancillary costs. The law offers the possibility to reduce notary fees when purchasing 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 property 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.