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The financial crisis that has gripped Europe since 2008 can also have positive aspects. In fact, in terms of mortgage loans, banks are competing with each other to make the mortgage market as attractive as possible: in this regard, interest rates have never been so low and loan terms have never been so long.
Simulate your mortgage loan

The latest innovation: special “Young” conditions, here’s a quick overview.

Concretely: what are my advantages?

Mortgage loans intended for young people offer even lower interest rates than ordinary mortgage market rates and, above all, allow you to pay off your entire mortgage, including fees.

Until what age?

These advantageous conditions start at the age of 18 and apply until the age of 40.

The duration of my mortgage loan

The term of your mortgage loan can be up to 30 years.

And that’s not all: €50 discount during the first 8 months!

When it comes to mortgage loans, always inquire about the grants and advantages granted by the public authorities.

Thus, if you are under 35 and under certain conditions, the Walloon Region grants you a subsidy of €50 per month on your monthly payment for the first 8 months. Find out more!

Nowadays, more and more teenagers live almost independently and no longer wait until adulthood to desire acquiring a scooter, a tablet, or a laptop…

Moreover, it is not uncommon for certain educational institutions to require students to attend classes with a laptop or tablet, allowing them to connect to the internet.

Unthinkable just a few years ago, credit professionals are often faced with credit requests from young teenagers or, more often, students.

Can a student or a minor borrow in Belgium?

A quick overview of this question that is sure to spark interest…

Not before 18

In Belgium and all European countries, the legislation is clear. No one can apply for credit until they reach the age of majority, which is 18 years.

The emancipated minor: what does it mean?

It is little known, but a minor can request the first instance court of their place of residence to be emancipated, meaning declared of age before turning 18.

This status requires that legal conditions be met. The candidate for emancipation will need the assistance of a lawyer to help with procedural steps. Note that the minor benefits from free legal assistance, known as “pro bono lawyer”. This means the minor is presumed indigent and will not have to pay attorney fees. The procedure is entirely free in Belgium.

Installment loan contracted by parents

Except for the exceptional case explained above, when a minor or a student wishes to take out a loan, they will have no choice but to ask their parents or legal representatives to contract it on their behalf. In this case, the parents take out an ordinary installment loan, and the minor’s name does not appear in the file. In other words, the minor does not bear any personal responsibility.

A banking product that comes from the United States

Some banks grant loans to students, but only to finance their studies and on the condition that the loan is repaid as soon as they start their professional life. These loans have strict conditions.

This phenomenon comes from the United States, where this type of loan is absolutely common. This different situation results from the fact that in the United States, as well as in the United Kingdom and Canada, the cost of higher education is much higher than in Europe. Therefore, some students have no choice but to incur debt during their studies.

In the United States, for example, the average amount of student loans is around €25,000.

Thus, the young person starts their professional career in debt, which raises some difficulties or ethical social and financial questions…

Crédit Populaire Européen is an SME active in the field of brokerage and intermediation of credit and insurance. Founded in 1996, it has been active in the credit market for 17 years and has acquired an enviable position in this highly competitive market.

The head office of our company is located in Saint-Symphorien, just a few minutes from the city center of Mons. It employs 9 full-time employees. We have branches in Waterloo, Arlon, and Luxembourg (in Esch-sur-Alzette). Discover the video presentation of our company.

CPE is a credit and insurance broker

What exactly is a broker? It is an intermediary between a bank and a client. In summary, our job is not to grant you credit but to prepare your file as best as possible to facilitate its acceptance by one of our financial partners. You thus benefit from our expertise and our reputation with banks to facilitate the granting of your credit request.

Our areas of activity

Our company is active in the field of credit and insurance.

Our flagship products are installment loans, consumer credit, personal loans, and mortgage loans. Discover our entire product range on our website.

We also insure you in all usual areas of life. Our insurance.

Why is our company competitive in these markets?

Our staff speaks 6 languages (French, Dutch, English, Spanish, Italian, and Portuguese);
Our brokers travel throughout Belgium and are available to meet you every day;
We guarantee a response within 24 hours, and if accepted, your file is signed within 3 working days;
Our reputation for reliability with banks is excellent;
Our brokers are qualified and experienced: they all have a high background in accounting, economics, law, and can answer all your questions.

Our essential credit products

Our website is one of the best on the market. Browse www.cpe-credit.com and discover, among other things:

Our smart advice for every important event in your life (wedding, moving, pregnancy, etc.);
Our credit simulator shows you to the exact euro the amount of interest you will have to pay in addition to the repayment of the principal;
Our notary fee simulators make your life easier when buying real estate;
Our credit advice sections help you understand everything about your credit;
Our explanatory videos will reassure you about the processing of your request;
Sign up for our newsletter to stay informed of our promotions;
Our blog is undoubtedly one of the most relevant on the market.

From January 1, 2020, the quotas will in principle be limited to 90%. In other words, you will have to finance the remaining 10%, as well as the registration fees for the purchase and for the loan.

However, numerous exceptions to this 90% mark have been provided:

For young households buying a home for the first time: 35% of the credits granted by a lending organization may exceed the 90% ratio and 5% the 100% ratio.

For those purchasing a property for the second time: 20% of the credits granted may exceed the 90% quota, but this can never be greater than 100%.

For rental investments: the maximum percentage is set at 80%, but it can go up to 90% in 10% of the loans granted.

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?

mortgage loan application file

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.

Our next articles will cover real estate taxation and the reduction of property tax (cadastral income)

How will the renovation of my house and its financing proceed? A mortgage loan is a loan granted by a credit institution, usually a bank, which involves a mortgage registration on a property owned by the borrower or one of the co-borrowers to guarantee the lender against a possible default in payment.

The mortgage loan contract must be signed in front of a notary and entails specific fees.

What is a mortgage loan for?

Generally, when we talk about a mortgage loan, we quickly think of buying a house or a property (building, land, etc.). This type of allocation represents a large part of the mortgage loan, but it’s not the only one, far from it. Thus, a mortgage loan can allow a person to borrow an amount of money that is not used to buy a house but for any other type of operation.

Resorting to a mortgage loan results from the fact that the borrower has no other guarantee than their house and therefore cannot obtain conventional financing like a personal loan.

The mortgage loan to finance my renovations

Thus, the mortgage loan can perfectly serve to carry out renovations in your house. In this regard, it is necessary to distinguish between:

Renovations requiring a building permit: in this case, the borrower must submit their building permit and the specifications drawn up by the architect to apply for the mortgage loan. The release of funds will be done in successive waves. The borrower must provide the invoices for the work or a certificate from the architect proving the progress of the work.
Renovations not requiring a building permit: in this case, the borrower must provide the quote(s) for the work to submit their loan application. The release of funds will also be done in successive waves upon the production of the invoices for the work.

The benefits of CPE

Our company has been present in this market since 1996. Our specialists take the time to analyze your file and offer you the solution that suits your profile. We will give you a preliminary answer to your request within 48 hours, subject to the perfect accuracy of the information provided. Find more info on our mortgage loan solutions.

Are you considering taking out a loan or credit: whether it is an installment loan or a mortgage?

You are a bit worried because, like everyone else, you do not know what the future holds and you want to be sure that you can repay your loan until it matures.

Did you know that you can supplement your loan with insurance whose premium is modest and can protect you from financial uncertainties throughout the life of your loan?

A few words of explanation…

Why take out insurance?

Without intending to exploit the economic situation affecting Europe or Belgium, it is evident that lately, not a week goes by without the media announcing a company restructuring, synonymous with job losses. Unfortunately, this can happen to anyone.

Sometimes, you also borrow with your spouse or a third person and an unexpected death puts your repayment capacity seriously at risk.

The consequences of defaulting on payments and a denunciation can be particularly stigmatizing.

What types of insurance policies?

Rest assured, you are not without means to deal with such difficulties. The insurances that can be useful to you are generally of two types: unemployment insurance and outstanding balance insurance.

What are the conditions?

Unemployment insurance

Be at least 21 years old;
Waiting period of 6 months after signing the credit agreement;
Be in a permanent employment contract;
Have completed your probationary period of 3 months;
Be eligible for unemployment benefits.

Outstanding balance insurance

You must answer a questionnaire that will allow your insurer to assess the risks inherent in your file. Sometimes, you also need to undergo a medical examination.

This insurance protects your heirs and your co-borrower in the event of death.

Optional or mandatory?

Signing an insurance contract is always optional. However, some banks will refuse to grant you credit if you do not take out an outstanding balance insurance policy. In this case, you forfeit your credit.

Sleep peacefully

The cost of these insurances is not high. Discuss the amount of the premium with your broker. Generally, this premium is paid in one go and its amount is deducted from the loan amount granted to you.

Peace of mind obviously comes at a cost, but nothing beats tranquility.

You are an individual planning to take out a loan or credit soon, whether it is an installment loan or a mortgage. You are wondering what documents will be required to apply for a consumer credit or a mortgage loan. Additionally, you have a securities account, various movable and immovable investments, as well as a savings account, and you would like to know which incomes will be considered to assess your creditworthiness. Let’s quickly clarify these questions.

What is my contributory capacity?

The credit institution or credit company is obliged to grant you credit responsibly, which means analyzing your contributory capacity so that the credit granted does not exceed the financial means you have and will allow you to repay this credit. In terms of credit, there is a simple principle that your borrowing limit is determined by your contributory capacity, which means all the financial means a person can mobilize to repay a credit while still being able to repay any other credits and meet the daily, ordinary expenses of life.

The first obligation of the broker is therefore to inform you of the amount you can borrow in regard to all your available income. Thus, the broker may be led to temper a client’s wishes by drawing attention to the limits of their budget. A dialogue is thus established between the broker and the client about the project the client plans to carry out. The borrower may sometimes have to delay the completion of certain works if the desired amount exceeds their contributory capacity.

To what extent can I count on the income generated by my investments, my securities account, and my savings account?

Movable investments made through banks, brokerage firms, investment companies, or insurance companies should, in principle, generate periodic income. Thus, a savings account generates annual interest. Bonds, government securities, and even some stocks produce annual interest and dividends.

These financial assets can indeed be considered to determine and assess your contributory capacity.

However, we must always remember that these financial assets may present a certain degree of risk (this is particularly true for stocks but also for high-yield bonds). Therefore, the credit institution or company cannot solely rely on the production of such assets to grant you credit.

Generally, what incomes are considered to determine my contributory capacity?

To determine the amount of credit you will be able to borrow, a broker will consider the following incomes:

Your professional income;
Your rental income (limited to 80%);
Your investment income (savings account, securities account, investments).

What incomes are never considered for the granting of credit?

For reasons of legal insurability, a credit institution or company cannot consider the following incomes:

Family allowances;
Unemployment and CPAS benefits;
Alimony payments (however, these positively influence the profile of an application).

Do you want to acquire a property, a plot of land, carry out work or renovate your house? Now is the time, don’t hesitate, mortgage interest rates have never been so low on the market. Fixed rate or variable rate? This is the question you will inevitably ask yourself. The answer in a few lines.

Fixed rate or variable rate?

For several months, interest rates have been so low that we can only advise you to take out a mortgage with a fixed rate.

Why are interest rates so low?

The financial crisis has a lasting impact on Europe, and banks have no choice but to offer very low rates if they want to revive credit activity.

Why choose a fixed rate?

Mortgage interest rates are so low that the trend for the coming years can only be upwards. So, if you take out a mortgage with a very low variable rate today, this rate will likely only rise in the coming years. Don’t forget that a mortgage can last 25 years and sometimes even 30 years. Over such a period, many events can occur. Therefore, if you have the assurance today of securing a low fixed rate for the next 25 years, why deprive yourself of such security?

When to choose a variable rate?

A variable rate mortgage is very interesting when interest rates are high at the time of your mortgage loan. In this scenario, you might think that interest rates will vary downwards in the coming years, which is not the case at the moment.

What makes interest rates vary?

Interest rates are set by the National Bank of Belgium based on the state of public finances. Today, public finances are not in good shape in Belgium, but paradoxically, it borrows at very low rates on the markets (sometimes even negative, which is a historical first). Why? Because the market estimates that Belgium’s finances are among the best in Europe and that Belgium offers significant solvency guarantees, particularly thanks to a very high savings rate.

When is it interesting to refinance your mortgage?

You have taken out a fixed-rate mortgage and notice that interest rates are very low now. You would like to refinance your loan and benefit from a lower rate. This is possible. For mortgage refinancing to be worthwhile, we recommend waiting at least 7 years after signing your contract. You should also see a reduction in your interest rate of at least 1% to offset the notary fees and the cost of releasing the mortgage registration.

Nothing beats a detailed case-by-case analysis

In this matter, we can only advise you to make an appointment with our brokers and discuss your case in detail. There is no ready-made answer, but an analysis of your financial situation will allow us to find, together, the solution that suits your current situation.

Your projects The Crédit Populaire Européen is an SME active in the brokerage of personal loans and insurance. As a local player in the economic life of our region and Wallonia, we frequently get involved in sponsoring social, cultural, or sporting activities.

What events or activities do we support?

Our priority goes to social, cultural, and sporting initiatives in our region. For instance, we might provide financial support for the organization of clothing or food distribution to people in precarious situations.

Are you organizing a music, theater festival, or any other cultural project? Present your project to us, we will be interested.

Have you decided to organize a hiking or mountain biking event, etc.? Contact us, we might be by your side.

How do we intervene as a sponsor?

We support the organization of your event through financial support.

What do we expect in return?

In return and depending on our intervention, we ask you to ensure the visibility of our brand and logo on your flyers and advertisements. If you have created a website, blog, or Facebook page around the event, we ask you to include our logo and brand among your partners with a link to our website.

We also ask you to prominently display our banners with our brand at the event location.

How to request sponsorship?

We invite you to visit our website. Gather the necessary information and send us your request via our online form.

We will receive you at our offices in Mons, and on this occasion, we will examine your organization file together and find a win-win solution.