It is generally accepted that the total credit charges for a month should not exceed 33% of your monthly income for a single person and for certain banks. In certain other cases, the debt ratio for importable income can go up to 50% of household income.
At the Crédit Populaire Européen, our specialists will study your situation and will offer you buy back and consolidate current credits so that you only have one loan to repay guaranteed by a mortgage.
First of all, as 2024 approaches, the mortgage sector in Belgium is set to undergo a major transformation. Therefore, the Minister of the Economy, Pierre-Yves Dermagne, announced new regulations. Aiming to cap real estate costs but also mortgage processing costs at 350 euros. This decision, based on a study by the Price Observatory. Reflects a proactive response to significant increases observed in recent years.
Then, the study revealed that between 2014 and 2018, fees associated with mortgage loans increased by an average of 50%. Going from 320 to 479 euros. This increase, often hidden in the details of contracts. Has weighed heavily on borrowers, especially those applying for low value loans. Indeed, the additional costs may represent a disproportionate burden for these borrowers, hindering their access to the real estate market.
In 2017, a first attempt at regulation set a ceiling of 500 euros. However, this measure proved insufficient, with credit institutions quickly adjusting their fees to reach this new maximum. The recent decision to reduce the ceiling to 350 euros demonstrates the determination of the Ministry of the Economy to protect consumers and make the mortgage credit market fairer.
A crucial aspect of this regulation is therefore the impact of digitalization on the credit application process. Indeed, with the advent of digital technologies, customers are now obliged to provide their data online. This then considerably simplifies the processing of requests. Therefore, this technological development could justify a reduction in processing costs. Because it potentially reduces the time and resources necessary for financial institutions to manage files.
Finally, the measure, which will then come into force on January 1, 2024. Therefore marks an important step in the regulation of the mortgage sector in Belgium. It should not only ease the financial burden on borrowers, but also promote greater transparency. And equity in the real estate market. This capping of fees is therefore a recognition that access to property should not be hampered by hidden or disproportionate costs. Particularly for those looking to acquire their first property.
* Warning, borrowing money also costs money.