The work credit allows you to make the necessary renovations to a house. Whether it is to beautify it, enlarge it, make it more comfortable or optimize its energy performance, it is important to prepare your work file well to hope to obtain financing.

The file creation stage deserves all the attention, whatever the nature of the loan requested. Even if the borrower has the choice between the different forms of work credit available, he must not forget that the ideal loan is the one that best corresponds to his profile and his financial situation.

The essential documents to obtain a work loan

A carefully established work credit file is already a big step towards obtaining the loan.

Among the documents that must make up this file are:

1. the authentic deed, intended to justify that the building being the subject of the work actually belongs to the borrower. Most of the time, this is a property title or, failing that, an extract from the property tax roll issued by the competent authorities.
2. Copies of the identity cards of the debtors or guarantors, if they exist, must be attached to this file for a work credit.
3. It is also important to request a quote from the professional responsible for carrying out the planned repairs and attach this document to the file.
4. To complete the file, proof of the borrower’s income, that is to say the last three salary slips accompanied by a bank account statement, must be provided to the bank so that it can define the repayment capacity.
5. Finally, if there are outstanding loans, it is imperative to inform the credit organization by means of supporting documentation.

Other tips and recommendations

To help the borrower properly prepare their work file and compare the different offers, there are free online simulators including the one we offer on each page of our site. It will allow you to obtain all the details about your credit, including fees.

If the work to be carried out is significant, it is wise to use the services of an architect. This can, in fact, bring together all the quotes from several service providers and offer the best choice. It can also harmonize the various projects to avoid any loss of time and money.

It is also recommended to be present on the construction site as often as possible so that you can react immediately in the event of a problem. You must also remain very vigilant when receiving the work and not hesitate to express reservations.

For more information :

• Consult this page to discover our “work credit” product
• Also consult our article on the Breyne law

Which address ?

Luxembourgers can contact CPE to find the credit that best meets their expectations. CPE has an agency in the Grand Duchy and another representation in Arlon. This proximity helps to reduce your travel and allows you to take out a loan in harmony with your projects and your real financing needs.

More information on our products

Do not hesitate to contact one of our credit brokers. He will be able to advise you on a loan adapted to your needs and your situation:

1. Consumer credit
2. Real estate loan
3. Credit for your mobility

You are looking for a small amount of credit to facilitate the purchase of everyday consumer goods or you simply want to have a cash reserve available at any time.

Revolving credit might interest you. A quick update on this common credit practice.

What is revolving credit?

Revolving credit is a credit facility that can be granted to you by a bank or by certain intermediaries such as supermarkets and who act – in a way – as a credit intermediary would do.

For what purpose?

Revolving credit is widely used for everyday consumer purchases such as high-tech purchases (computers, tablets, television, etc.) as well as for everyday consumer products (washing machine, etc.). This is why it is not uncommon for this type of credit opening to be offered in supermarkets.

What interest rate?

These credit openings generally concern fairly small amounts ranging from €1,500 to €5,000. It is in fact about financing everyday consumer goods. Under these conditions, the interest rates charged are generally quite high, that is to say exceeding 10%. In fact, the lower the amount borrowed, the higher the interest rate associated with the credit.

How does it work?

With a revolving credit, you have a credit opening for a specific amount that you can use each month. Let’s say you have a credit opening of €3,000 per month. This means that you will be able to withdraw €3,000 from this opening over one month.

Of course, you will have to repay each month, an amount which will be calculated in proportion to the amounts withdrawn plus interest. So, if you only spend €750 per month, your repayments will be calculated on this amount plus interest. Your credit opening is replenished every month.

You have several outstanding loans: a personal loan of €12,000, new car financing of €22,000 and a credit opening of €5,500.  What could be obstacles to your credit recovery?

You would like to group these 3 credits together in order to see your single monthly payment lower than the sum of the 3 separate premiums.

What could be the main obstacles to carrying out these credit redemptions ? 

What is credit redemption ?

The credit repurchase aims – in a way – to carry out a credit consolidation. In the example given below, you have three separate monthly payments to pay. By repurchasing the three current credit balances, you will only have one credit whose monthly payment will be much lower.

For what advantages ?

Firstly, from an administrative point of view, you no longer have to think about paying your three premiums each month to different people. By refinancing your loan, you only have one current loan and one contact.

Then, it is quite obvious that the accumulation of three separate premiums resulted in much higher repayments than if you only had one current credit, even if the amount of this credit is greater.

The main causes of refusal by a bank to repurchase credit ?

• You will undoubtedly experience difficulty obtaining a loan refinancing if you are already in a dispute situation, that is to say if you have not repaid your monthly payments on time. In this case, you will be registered with the National Bank of Belgium; 
• Your banker will analyze your debt ratio, which should never exceed 35 to 40% of your monthly income ;
• Your banker will take into account your credit repayment history ;
• Your banker will analyze the quality of the guarantees offered to protect yourself in the event of payment default.
• If you are married, both spouses must consent and sign the credit agreements.

You intend to take out a loan : consumer loan or mortgage loan. You would like to know the exact cost of your credit. The monthly premium that you will have to pay as well as the total amount of interest paid until maturity. Online credit simulation explained.

Our company provides you with a credit simulator which will allow you to know the exact amount of your premium depending on the type of credit you choose. Likewise, you will know precisely your APR as well as the total interest paid. You will therefore be able to know the total cost of your credit.

Credit transparency is the key element in the way we work.

Some explanations…

Our credit simulator

Visit our complete website and use our free credit simulator accessible on all our pages including the home page. You will also find an explanatory video which will allow you to optimize its use which is, moreover, very simple.

Thanks to these tools, you will be able to choose the credit that suits you, know the amount of your premium, the APR applied to your file, as well as the total amount of interest paid until maturity. You therefore know what you are committing to before subsequently signing your credit contract.

How does it work ?

Using our credit simulator is very simple. First, you choose your project : you borrow to buy a new car, to do renovation work, to buy a building or to obtain cash quickly. It is obvious that the interest rate is different depending on the nature of the use of the borrowed funds. Why?  Because your banker will have different guarantees depending on whether you are buying a building or whether you want cash to pay late bills, or to go on vacation.

Then you choose the amount you want to borrow. You then ask the simulator to calculate your monthly premium. You then have the possibility of modifying your request according to the amounts of your premium or the duration of your loan. In summary, you choose your credit card according to your wishes depending on whether the determining criterion for you is either the amount of your premium or the duration of repayments.

The advantages of express credit

Thanks to our simulator, you know precisely the total cost of your credit. Our simulator informs you about the APR, the amount of your monthly premium, the total amount of interest paid until maturity and therefore the total amount of the cost of your credit.

This information is also required by the law of June 12, 1991 on consumer credit. You will find this information on the website of the SPF Economy in terms of consumer credit. 

The conditions

If you consider that the calculated premium is too high or too low, you can vary the amount of the premium to pay or the duration of your repayments. So you really choose the product that suits you and best fits your budget.

Submit your request online

You have found the credit that suits you. You can submit your request online by clicking on the “ send my request ”. Don’t worry, this is a simulation and you will not be hired until you have physically met our employees at our offices to sign your credit contract. On this occasion, you will ask useful questions to resolve any remaining concerns that you may still have.

Can a borrower add the family allowances they receive to their income to obtain a loan? In a more general sense, what income is considered when applying for a consumer loan or a mortgage?

Family allowances

Family allowances represent a significant financial aid for each family. Thus, in Belgium, parents receive a monthly allowance of €90.28 for the first child; an allowance of €167.05 for the second child, and an allowance of €249.41 per child from the third child onwards.
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Can these amounts be taken into account to assess your total income for obtaining a loan?

The answer is decidedly negative. You cannot rely on your family allowances to obtain a loan, regardless of the type of loan, the borrowed amounts, or the loan duration.

Why? It is the Belgian legislator who aimed to protect family allowances and reserve them for the purpose for which they were created. Similarly, your family allowances are not subject to seizure, which would prevent a financial institution from seizing them in case of default.

Aside from employment income, are there any other sources of income that can be considered for obtaining a loan?

Of course, the legislator allows you to include in your income for the purpose of obtaining a loan:

• Rental income, meaning the income you receive from renting a building, part of a building, and more generally from any real estate property of which you are the owner. However, the legislator limits this consideration to 80% of the amount of rental income.
• Income from movable assets generated by financial investments (securities account) or interest received on your savings account.
• Legal pensions, except pensions paid for disability benefits.
• Income received as replacement due to disability.
• The declared income from a supplementary professional activity.
• The allowances received from your health insurance fund.

What are the other incomes or allowances that are not taken into account?

Aside from family allowances, the following are not taken into account:

• Unemployment benefits because, like family allowances, these allowances cannot be seized and therefore cannot be considered as useful collateral for a financial institution.
• Income received in contravention of the tax obligations in force in Belgium (undeclared income). Indeed, any proceeds from a tax offense constitute, under Belgian tax criminal law, a criminal offense liable to be prosecuted before the criminal court. The banking institution that would agree to take into account the proceeds of such an offense would therefore become an accomplice and guilty of money laundering and concealment.

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