The renovation and construction fair. Real estate remains a safe bet in Belgium given the upward trend in values on this market, it is always for the Belgian a useful and profitable investment. In this article, we give you some useful tips to help you prepare your mortgage loan application.
What are the determining elements for preparing your mortgage credit file?
Our credit brokers have almost 20 years of experience in the mortgage 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. It should not be forgotten that a mortgage loan is paid off over a long period. It is therefore essential that you choose a viable long-term solution so that you feel serene in the face of future repayments.
The elements that are taken into account are the following:
- The size, nature and stability of your income;
- A statement from the national bank of Belgium indicating that you are not on file for an unpaid credit dispute;
- Your age and the size and duration of the desired credit;
- The detail of all your fixed charges (other credits for example);
- The cost of the building compared with your financial profile;
- The equity you can bring.
Are there several mortgage loan formulas?
Indeed, correlatively to the purchase of a building, the buyer must bear various costs which are then added to the purchase price. We obviously refer to credit deed fees and the inevitable notarial fees.
Thus, in principle, prospective buyers are required to have their own funds to be able to pay the costs. Indeed, the bank only tends to grant a loan corresponding to the market value of the property.
Reduction of registration fees for modest buildings
There is a possibility of reducing your incidental costs. the law offers the possibility of reducing the notarial fees if you buy your first house when it is a modest dwelling. The normal rate of registration fees (12.5% or 10%) can be reduced to 6% or 5%.
The first condition to be able to benefit from the reduction of rights is to have a cadastral income of maximum of $ 745. If this cadastral income is $ 746, the purchaser of the building will pay 12.5%.
This ceiling of $ 745 can however be increased for large families. It will be brought to:
- $ 845 for the buyer who has three or four dependent children,
- $ 945 if he has five or six dependent children,
- $ 1,045 if he has seven or more dependent children.
Our next articles will deal with property taxation and the reduction of property tax (cadastral income)