The Social Mortgage

You have modest income and are having difficulty obtaining a classic mortgage. Don’t panic, the “housing for all” social mortgage is tailored for you. Our lawyer explains the advantages of such a loan.

Social Mortgage Loan Concept

The social mortgage loan is a loan granted by the Société Wallonne du Crédit Social to finance the construction or purchase of a first home in the Walloon Region, intended for the personal occupation of the borrowers. Simulate your loan online

Granting Conditions

As with any loan application, the lender will conduct a thorough examination of your solvency based on the information collected in the credit application form. You will therefore need to prove your identity (adult) and provide proof of your net monthly income. If necessary, the lender will consult the Central Credit Register. The monthly repayment of the mortgage cannot exceed one-third of the borrowers’ net monthly income. Your annual income must not exceed €53,000. You will also need to provide the title deed or the sales agreement of your home. The market value of the home must be less than €204,000. An expert will be appointed for this purpose, if necessary. The regulations apply to any building used for residential purposes. The area of premises used for professional purposes must not exceed 20% of the habitable area. The loan term ranges from 10 to 30 years, with the mortgage needing to be fully repaid by the age of 70. The applicable interest rate will correspond to the scale of the corresponding income category. Rate reductions are possible in areas known as real estate pressure zones, revitalization areas, or for the purchase of social housing.

Once the file is complete

It receives a registration number. The credit contract must be signed within 100 days following the registration date. Mortgages are repayable in constant monthly installments. A deed of assignment of claim must be granted in favor of the lender. The borrower will be required to insure the home against fire and take out a remaining balance insurance. If the loan is intended to finance renovation or other works, these must be completed within two years of signing the contract. If you wish to sell your home, you will need to fully repay the loan amount. A reinvestment indemnity of 3 months’ interest will be due on the capital repaid in advance.

Formalities

All applications must be submitted to a social credit counter of the Société Wallonne de Crédit Social. The application fees are around €25. You should also account for an amount of €260 for the home appraisal. These amounts will not be refunded if the loan application is denied. In addition, a solidarity contribution to the Walloon Region of 0.20% of the loan amount is to be expected. Any modification of the loan in progress also incurs a fee of €150.

Appeals

If the Société Wallonne de Crédit Social refuses the requested loan, you have a period of 30 days to exercise a right of appeal in writing to the Chairman of the Board of Directors of the SWCS. Simulate your loan online