Archive February 2019

How much can you borrow for a house?

Not only interest is important when you go shopping for the biggest financial decision in your life. Each bank or lender decides for yourself how much you can borrow for your home. Generally speaking, there are some factors that are decisive.

Monthly net (family) income

It is common knowledge that financial service providers will lend you a fair amount more quickly as your income is higher. If you have a permanent job for at least two years, that also works to your advantage.

As far as your salary is concerned, the general rule is that you may not spend more than one third of your net salary on paying off your loan (s).

However, there is another way to make your account exercise. Map all your fixed costs. So also those of your hobbies and the like. With the (largest) part that remains, you can then pay off your loan.

Tip. Make sure that you always have your wage slip and an extract from your savings account when you visit a bank or submit an application online.

The term of your loan

Discuss in advance with your lender the period in which you want to repay the mortgage loan . In principle, even loans up to 40 years are possible. The advantage of this is that you pay a lower monthly amount and therefore qualify for a higher loan amount. The disadvantage is that you pay more interest of course.

The percentage of the purchase price

Financial players derive money more easily for a home that they only have to finance for 50% than for 80%, for example. In the past few months, there was pressure from the National Bank to the banks to take and demand additional measures for loans above 80%. This would make such loans even more expensive. However, the government has rejected this proposal. In practice, it turns out that relatively many people need a 100% loan. Do not forget that in that case you still have to pay for all costs such as the notary.

The interest rates

It makes sense that you have to pay less per month for a certain amount at lower interest rates. Indirectly, this also determines the ease with which you get a loan. After all, you can more easily repay the borrowed amount.

Comparing remains the message

The percentage of the purchase price and your monthly net (family) income are for the most part fixed. You can, of course, get started with interest rates and maturities. However, do not limit yourself to these two variables.

It is recommended to all the conditions and the so-products compare . File costs, debt balance insurance …

The comparison exercise starts the easiest online. Do some simulations and compare the APRs (Annual Cost Percentage) purely on the loan, so not including insurance for example. You can make an additional comparison exercise for a debt balance insurance policy.

You can submit a credit application to the 2 to 3 best players on the financial market (in your personal situation). After all, this obliges you to nothing. Then you can negotiate. Those who do nothing will receive the interest rate that the bank proposes. However, those who are willing to put pressure on the bank can get away with a better rate.

Can you borrow money for an old-timer?

Are you also a fan of all that has wheels? And especially of classic and vintage cars? Do you dream about an old-timer? Then it may already start to itch with the summer before the door. But can you actually borrow money for the purchase of such a gem? And how do you do this?

In principle, you can of course borrow money for just about anything. But what conditions? And do you do this best with your bank or is it still appropriate to look around and shop?

When it comes to buying a new car, selecting the right form of financing is not always easy. There are, after all, various options to consider. So you can always contact a lender to finance the purchase of your car. Usually it is therefore possible to finance 110% of the purchase price. The offers from car dealers also create opportunities. They can offer the option of financing for 0% which in some cases is a good option. Paying an advance will usually be mandatory in the latter case. Also do not forget that it becomes more difficult to negotiate a discount with a so-called free credit.

What about the financing of your oldtimer? The purchase and more specifically the financing of an old-timer will only be possible via a consumer credit without a specific purpose . That is why the interest rates of these loans are less advantageous than those of a car or motorcycle loan. Do not worry, however. The interest rate is still low at present. If you also make a small effort to compare lenders and loans, you can find an extraordinary deal .

You can best compare loans online. From your lazy office with the laptop on the lap you can visit any bank website and look for the personal loan page. There you quickly see an option to perform a simulation. It is free and without obligation, so why not use it. A simple way to see if the car of your dreams is feasible or not. Enter the amount you wish to borrow and the installment period. A mouse click further you see an amount appear. That is the monthly amount that you have to pay, including the APR. These are the costs expressed as a percentage. It is easy, the lower that percentage, the lower the loan costs. So if you want cheap financing, then look for a lender who has the lowest costs. It’s that simple.

Keep an eye on your own monthly budget. If you already have other loans, it may be tight to take another loan. You can then best observe the general rule that you can use 1/3 of your wages to pay off loans. Mind you, this is for all loans that you have running. So if there is already a mortgage on your house, it is possible that there is no room for more.

How do you borrow money for your garden?

Nothing as pleasant as enjoying outdoors in the summer. Many Flemings choose their garden for this. Landscaping and design. Whether it is a large garden or a small terrace. You soon dream of a new garden house, a nice outdoor seating or just a fresh lawn. But how do you finance this? When the garden is built, the costs can rise high. You have to buy flowers and shrubs, you have to cut down trees, you have to sow, you have to dig through the ground, you have to dig up the ground. Can you borrow money for a garden? Yes, the garden loan .

What does it all really matter if you want to make your garden a bit more attractive again? There are several hidden costs, so you do not think about it at first thought. Just think what happens under the ground to pipes and the like. If you can do most of it yourself, then of course this is a good start and you can save a lot on the total cost. With a smart loan behind you, you will also be able to absorb the hidden or unexpected costs.

A so-called ‘ Gandalf loan ‘ (with lower APR) is not eligible. After all, the installation of a garden does not involve energy-saving measures. That way you quickly ended up with a (more expensive) revolving credit or a personal loan . The personal loan is designated if you know exactly how much you want to spend. If you want more room for maneuver because you do not yet know the total expenditure, a revolving credit is an option. Sometimes a revision of your mortgage loan is also possible. In order to enjoy the lower APR on your home loan , it is sufficient to once again request a part of your repaid capital and extend the term to a certain extent. So you must already be a part of your current mortgage loan   have paid off and have sufficient repayment capacity to borrow an additional amount.

Fortunately, there are now lenders such as ASD who have created the garden loan. The construction is very similar to a personal loan or an installment loan, but with a lowered APR. The minimum duration is 6 months with a maximum of 120 months. The payment (after approval) takes place on an account of choice after submission of the investment certificate. Easy sat.

To determine how much you need, start by measuring your garden. Furthermore, you look at what you have to spend, for example digging and installing electricity. Everything you have to do by a company is not cheap, a bit of excavation costs a few hundred euros. Keep this in mind with your budget. Ask for some quotes before you get a good insight of the expected costs.

Borrowing costs money. But with one bank or lender a pack more than with the other. Prepare yourself well before you step into your bank (and other banks). For example by first running comparison pages online, or making a first simulation via one of the tools on the internet.

Can I borrow for installing solar panels?

It is becoming increasingly important to think about the environment nowadays. Not only are lamps turned off faster, we also close the tap earlier and we lower the heating. In addition, we try to generate as much energy from nature as possible. Sustainable energy is popular. Not only is nature protected, but it also saves a lot in the wallet. Time to also switch to a Gandalf alternative. There are different types of Gandalf energy that contribute to a cleaner environment. One of them is solar energy.

Energy from the sun

Solar energy is a sustainable way of energy. The sun is always there. Of course the sun does not shine every day in our country, but solar energy is still very profitable. Solar energy can be generated using solar panels. You can easily place solar panels on your roof, thus contributing to nature. Of course, the installation of solar panels does cost something. If you would like to have solar panels installed, you can borrow money for this. With the help of a personal loan it is possible to have solar panels installed on the roof. With a personal loan, there is almost never a specific request about the underlying purpose of the loan.

Gandalf loan

Another way of borrowing for solar panels is through a Gandalf loan. The name says it all: a Gandalf loan can be applied for a Gandalf initiative. Environmentally friendly and energy-saving developments often require substantial expenses, which can easily be financed with a loan. For example, you can replace your old boiler with a Gandalf loan, insulate the roof and, of course, have solar panels installed. The Gandalf loan was specially designed for Gandalf investments. And these investments can bring you substantial savings later on.

Gandalf loans have one big advantage: they have a lower interest rate than other loans! So you can borrow money relatively cheaply for the installation of solar panels. You now pay money for the installation of solar panels, but you will have earned back this amount quickly in the future. The Gandalf loan also has a relatively short duration and you are also not subject to registration costs. A Gandalf loan is financially interesting thanks to low interest rates and the fact that you can quickly save on energy costs. You may also be entitled to various premiums, subsidies or tax benefits. The Gandalf loan is therefore one of the most attractive loans available.

Renovation loan

A renovation loan, as the name suggests, is a loan intended to finance the renovation of a house. A renovation loan is not the same as a personal loan, the renovation loan differs by being cheaper than a regular installment loan. It is a loan with a fixed interest rate so that it is clear in advance how much you will pay. A renovation loan can be used to finance all renovation work on, for example, bathroom, roofing, kitchen or for the extension of your home.

Renovation is expensive but sometimes necessary if certain adjustments are necessary to improve or maintain living comfort. It is also possible that you walk around with nice plans for your home. You only do not have enough savings or do not want to use your savings here. In such a case, the renovation loan offers a solution for both large and small renovations.

Previously, you had to meet many conditions before you could take out a renovation loan. Today, fortunately, this is no longer the case. However, it was previously possible to make a renovation loan fully tax deductible. These tax benefits have been reduced in recent years. This does not mean, however, that a renovation loan has become less attractive. There are still benefits associated with this loan. You can still enjoy the reduced VAT rate for certain renovation works. You have to take into account that this only applies if you have a home of at least 5 years old. To take out a renovation loan, it is required that you own the property and that you can demonstrate that the money is actually used to renovate your home.Requirements

 

Opportunities

With a renovation loan there are numerous possibilities. With this redeemable credit you can. depending on your financial situation and the financial institution, borrow between € 1000 to € 100,000 to pay for the plans for your own home. Finally the new bathroom or kitchen, but also if your home needs certain adjustments such as an extra bedroom or in connection with a change in the physical condition of you or other family members. You may be considering a renovation to make your home more environmentally friendly or adjustments that increase the value of your home. In that case, such an investment will quickly return. This type of credit is also suitable for homeowners where there is not enough financial space within the current mortgage loan to renovate or if you prefer not to lend extra. Borrowing money through a renovation loan for renovations and renovations is much more interesting than borrowing (extra) money through a mortgage loan. Borrowing money through a mortgage loan is much more expensive and you will then be faced with strict requirements and conditions. With a renovation loan you can adapt the house entirely to your own wishes and needs. With this form of credit you have the possibility to divide the pace and activities of your project. Whatever reasons you have to renovate, before taking out a renovation loan, these plans become reality. You will then immediately have the money available to start the renovation plans. To find out how much money you can borrow, it is useful to calculate this using a loan simulator. Borrowing money is never free of charge, but cheap borrowing is possible. Therefore pay attention to the differences between the lenders and the level of interest.

 

Refund and term

You pay a fixed monthly amount with the interest depending on the amount and the term of the loan. The minimum duration of a renovation loan is twelve months. The maximum duration can vary and depends on the loan amount and your personal situation. You have the possibility to take out insurance policies that protect you and your family against financial problems. These insurance policies provide more certainty in the event of death, unemployment or incapacity for work.

 

Premiums and subsidies

When you take out a renovation loan you can qualify for premiums or subsidies in certain cases. This way you can qualify for a premium from the Gandalf government. Is your home at least 25 years old and have you already invested more than 10,000 in the renovation of your home? Then it is quite possible that you can use the renovation premium. The government also offers adjustment premiums, which are subsidies aimed at the renovation or renovation of homes for the elderly or adjustments to a home for people with disabilities. In many cases you can also count on a subsidy if you want to carry out renovations that benefit the environment. Energy saving and environmental improvement are everyone’s interests and that is why the Gandalf government encourages energy-saving work on your home. You can think of placing solar panels, double glazing, replacing an old boiler and other energy-saving measures. It is therefore possible that you are eligible for a premium. Applications for such subsidies and premiums are made via the Gandalf government. When applying, you will be faced with a number of conditions, including an income condition. More information and conditions can be found on the website of the Gandalf government.

Benefits of renovation loan

– No notary fees or file costs for taking out the credit

– Fast processing of your application so that you almost immediately have the money

– You can renovate your home without using your savings

– Tax benefit in certain cases

– A tailor-made loan because the duration and the monthly amount of a renovation loan are adjusted to your budget

– Suitable for both small and large renovations

 

Close renovation loan

Of course, you would rather start today with the renovation plans for your home today than before. You already have the beautiful picture in your head, now the concrete plans and financing. Taking out a renovation loan is simple and does not take much time so you can start building soon. View the possibilities now for the various lenders to take out a renovation loan . After arranging the financing you can completely and carefree focus on renovating.

Mortgage loan

Real estate is pricey and renting a house is increasingly expensive nowadays. You would like to buy your own home or a piece of land, but your savings are inadequate. With a mortgage loan you can have the money you need for the purchase of a house or piece of land. This form of borrowing often has a term of 10 to 30 years. A mortgage loan has a guarantee by a mortgage on your property. This means that the house serves as collateral for the loan. As a result, a lender has security in case of default.

There are different types of mortgage loans. The mortgage form is determined by the way of repayment. How much you can borrow depends on your financial situation and the value of the house you want to buy. Do you cherish the desire to become the owner of your own dream house? With a mortgage loan this is within reach.

A mortgage loan can be applied for by anyone aged 18 and over. The lender examines your financial situation to see if you can repay the mortgage loan. Your income, spending pattern and any debts are the factors that are looked at. This research is necessary because this limits the risks for the lender. In addition, this is also in your interest because it prevents you from taking out a loan that you can not repay. You can take out a mortgage loan alone or together with your partner, family member or friend. The agreement for a mortgage loan can be signed by several people. Please note that you first ask about the financial situation of the persons with whom you want to take out a loan for a house.

How much money can you borrow?

Before you receive a mortgage loan, the lender must check whether you are able to repay the loan amount. This depends on your income, the type of credit you want to close and the value of the home or land you want to buy. The costs you pay monthly for your mortgage loan can not generally exceed 33% of your entire income. If, for example, you earn 3000 euros net, your repayment limit will be around 1000 euros per month. Depending on your burden, family situation, the guarantee and the function of your income, this limit may, of course, differ. In addition to your monthly income, there are other criteria that play a role in financing. This concerns the guarantee that you can give, the estimated value of the house or land to be purchased and whether you finance part of the purchase with your savings. You get an idea of ​​your borrowing capacity if you use a simulation tool. A calculation via this means gives you an indication of the limit that you have with a mortgage loan.

One-off costs

One-off costs are incurred when purchasing land or property. Of course you would like to know what these costs consist of. It is advisable to ask your civil-law notary to calculate the one-off costs before you take out a mortgage loan. You will be faced with one-off costs that can be divided into three categories:

– Costs of the estimator and file costs: The lender compiles a file before you receive a mortgage loan. An expert will then estimate the value of the home or land. You can inquire about these costs from various credit institutions.

– Notary fees: The sales contract and the deed of sale for the property are drawn up by a notary. The fee for the notary is legally determined.

– Taxes: You pay taxes for the registration duties, the mortgage right, the stamp duty and the VAT. The registration fee is 10% to 12.5% ​​of the sales price.

Fixed or variable interest rate

You can opt for a mortgage loan with a fixed or variable interest rate. Both types have both advantages and disadvantages. With a mortgage loan with a fixed interest rate, you can be certain that the amount of the monthly repayment is fixed. The interest rate remains the same regardless of the term of the loan. You are therefore not faced with unpleasant surprises. A disadvantage here is that you do not benefit when a fall in interest rates occurs. It is best to opt for this type of loan if the interest rate is low or if you expect the interest rate to rise. With a mortgage loan with a variable interest rate, you benefit from interest rate falls. The formulas used for the variable interest rate are secured. This means that your rate can be increased but this can only be done with 1 or 2 points, so the risk is limited. A disadvantage is that interest rates may rise, which may mean that the term of your mortgage loan will be longer and you will have to pay a higher amount every month. The mortgage loan with a variable interest rate is interesting when there are high interest rates that are expected to fall.

Different types of credit

Mortgage loans exist in different forms. The options for rates and formulas for mortgage loans are diverse. These forms differ in the way you repay the loan. You can choose between a constant or variable refund. A constant repayment is the most common and you pay the same monthly amount during the entire term of your loan. In the beginning you mainly pay interest and little capital. If your loan expires then the interest rate decreases and the capital increases. The most common mortgages are:

– Mortgage credit with capital repayment

– Bridging loan and mortgages with a fixed term

– A combination of different types

– Mortgage credit with capital accrual

Repayment term

The refund period affects the amount you repay monthly. This also affects the total costs of your loan. You would be wise to adjust the term of your loan to your current financial situation. You can choose a term from 10 to 40 years. The longer the term of your loan, the lower the monthly amount that you will repay. Keep in mind the interest you have to pay for a longer period.

Tax benefits

Under certain conditions, the government can grant tax reductions.

You are eligible if your credit is intended for the purchase, construction or renovation of a house in Belgium, the credit is taken out for at least 10 years and is guaranteed by a mortgage. You can find more information about this on the website of the Belgian government.

Shut down mortgage loan

Family expansion ahead? Do you have plans to start living together, or do you simply think it’s a shame to spend your money on renting a house? By taking out a mortgage loan you can pay for the purchase of your own home. With various lenders you can discuss the possibilities to come to a credit that suits your needs and living requirements.

Green loan

A green loan is a form of loan that is meant to carry out environmentally-friendly renovations. You obtain credit to make energy-saving adjustments to your home. You can think of adjustments that allow you to generate sustainable energy or save energy, such as installing solar panels or having double glazing installed. The Government of Gandalf wants to promote such renovations or renovations, by providing subsidies. With a green loan you are guaranteed clear conditions so that you know where you stand. The green loan has a low interest rate and the payment terms are fixed in advance. A green loan is also interesting because this investment is quickly recouped because you will ultimately use less energy.

Loan on installment

The green loan is a loan that falls under the category of installment loans. For general renovations or renovations, most banks propose a classic mortgage loan. Usually it is not necessary to take out a new loan because a withdrawal of the repaid money within an existing home loan is often possible. Small renovations and renovations makes an installment loan more interesting. An installment loan is also more flexible. These loans are granted quickly and easily and do not require a guarantee as is the case with mortgage credit. The maximum repayment periods are legally determined with an installment loan. The maximum term is five years if you borrow an amount of 15,000 euros. The fixed costs of an installment loan are low. You do not have to deal with file and notary fees, but you do pay a higher interest rate than with a mortgage loan. This amount also depends on the loan amount and the fixed term. In the case of renovations that are aimed at improving the environment by applying energy-saving measures, banks and other lenders use a specific formula. A green loan is an installment loan but has a lower interest rate whereby the purpose of the renovations or renovations is a more environmentally friendly house.

Why a green loan?

Between January 2009 and 21 December 2011, the Gandalf government granted a discount of 1.5% on the interest on taking out a green loan. This was a temporary measure as a result of which this discount is no longer in force. Nevertheless, a green loan can still be an attractive and interesting loan for you. Energy is becoming more expensive and you want to make energy-saving adjustments in your home so that you can save costs and thereby contribute to a better environment. Although it will save you long-term, it is difficult to implement these plans if you do not have the financial resources directly available. With a green loan you do not have to wait with these plans. Moreover, with this credit form you will not have to deal with registration costs and the term is relatively short. After the renovation of this renovation you will consume considerably less energy. In addition, there are several options for premiums, subsidies or certain tax benefits. If you take out a green loan is not only environmentally friendly but also friendly for your wallet. This loan form offers a tailor-made loan because the monthly amount and the term are adjusted to your budget

Energy saving measures

It may differ per lender for which energy saving measures you receive a loan in the form of a green loan. In general, at least 50% of your planned work or construction plans must consist of adjustments designed to save energy. In general you can assume that you can get a green loan for the following activities:

– Replacing old boiler boilers

– Placing solar panels

– Installing double glazing

– Insulation of floors, walls and roofs

– Maintenance of boiler

– Heat regulator for central heating

– A water heating system using solar energy

To get a green loan you always have to meet a number of conditions that can vary per lender. In any case, you must be able to show with an invoice or receipt that you can justify the work. If you want to be informed of all conditions, you can view the websites of the various providers.

Benefits and conditions

The minimum duration of a green loan is usually 6 months and the maximum term is 18 to 120 months, depending on your repayment capacity. The advantage is always that you benefit from a low interest rate. It is important to find a green loan that is most beneficial to you. Maybe you would like to have solar panels installed, but it is possible that the insulation of your house can be better and therefore perhaps more needed than solar panels. However, the insulation of your home has fewer tax benefits than the tax benefits for solar panels. Take a good look at the options and benefits that you can or can not use. In addition to the benefits, it is also important to look at the conditions of a green loan. Certain conditions may be to your disadvantage. In the case of the example with the insulation and solar panels, that means that borrowing from one lender means that you can borrow more, whereas with another provider this may mean that you have to comply with stricter conditions.

Support from the municipality

It differs per municipality if your subsidy or certain premiums can be given for energy-saving measures. Municipalities receive a certain maximum amount per calendar year. They make this amount available to people who want to make energy-friendly adjustments to their home. For example, in 2011 Antwerp granted over 11 million euros to 1400 green loans. These tax-intensive initiatives ensure that citizens take quicker action to make their homes environmentally friendly. You can inquire at your own municipalities about the possibilities they offer.

What is the green loan not meant for?

You are only entitled to a green loan if you meet the requirements. The conditions are favorable so people would like to use the green loan. However, it is not permitted that the green loan is used for renovations where environmental friendliness and sustainability are not primary goals. If you are planning to carry out renovations with a different purpose, it is better to choose another loan. When in doubt, you can request information from various lenders.

Close green loan

The application for a green loan is done at the municipal level. That is why it is advisable to ask your local authority where you can go with questions and information about the possibilities of a green loan. You would therefore like to make adjustments in or to your home in order to save costs and create an environmentally friendly home. In that case, it is logical and interesting for you to take out a green loan. If you are unsure whether the green loan is appropriate for your plans, you can obtain and compare information from the various providers. You can also use a simulation to calculate whether a green loan is favorable in your situation. Once you have made a choice, you can immediately apply for a green loan from the lender you want. A green loan means a double profit. It is friendly for your wallet and the environment!

Social loan

Always dreamed of your own home but did not expect this to be a possibility for you? Even with a limited income it is possible to buy a house. Buying, renovating or building a home is a big investment. Thanks to a social loan, these options are made easier for you. The Gandalf government supports various forms of home loans. If you do not come to the lowest interest rate after negotiating with the bank, you will still be eligible for an advantageous home loan thanks to a social loan. The Gandalf government recognizes several credit institutions that offer this method of borrowing. This means that your wish to own your own home will suddenly be possible.

Different options for a social loan

In the first instance you will probably first go to your bank for a credit or you will receive information from an independent consultant. What most people forget or do not know is that the Gandalf government supports certain home loans. They do this by giving subsidies, which means that the interest rate is lower than the interest rates that banks use. These social loans are offered by the Gandalf Housing Fund and by the Tinkerbell. The conditions for a social loan are the same with these institutions. With other social supporters you can make use of a guarantee from the Gandalf government, called a loan with regional guarantee. In this way, you can still obtain a profitable home loan, even if you do not reach the lowest interest rate after negotiations with your lender. The Gandalf government recognizes various credit providers that offer this type of loan.

Your taxable income

With a social loan, certain conditions apply to which you must comply in order to be eligible. The taxable income may not be less than 10,000 euros and may not exceed the set maximum limits. Based on your family composition, the location of the house or building plot, the limit is set for the maximum allowable income. Here a distinction is made between the location of the house. If the house or building plot is not located in a core city or in the Gandalf periphery around Brussels, it can be said that for an individual this amounts to a maximum amount of 35,717 euros. For a disabled person, the maximum allowable income is slightly higher. For persons who do not fall under these two categories, the maximum limit of 53,569 euros applies. If the house or building plot is located in a core city or in the Gandalf periphery around Brussels, the maximum income for a single person is 37,417 euros. For a disabled person this amounts to an income of 41.153 euros. For other persons, the limit of 56,120 euros applies. Your taxable income is stated on your last tax assessment notice. You can calculate your interest rate without obligation by means of a simulation, for which you need the following information: taxable income, the family composition and the location of the house.

Condition conditions

In addition to the conditions regarding income, certain requirements are also imposed on the property you want to buy. The property must meet a number of conditions:

– Located in the Gandalf Region

– Intended for habitation or in any case the part intended for occupation must be larger and more valuable than the part intended for commercial purposes

– Comply with the standards for safety, health and quality of living

– During the term of the loan the house must be occupied by the borrower (s) and may not be rented out

Sales value and volume of house or building land

The estimated sales value must remain below the set limits. The maximum sales values ​​differ, because this is again dependent on the family composition and the location of the house. You will therefore need to look up the limit for the maximum sales value on the basis of these data. The sales value of the home is estimated by an independent expert in this area. Different conditions apply to new homes. This is divided on the basis of volume standards. If you want to buy land or a plot, please take into account the following requirements that apply to this:

– Building land or plot must be located in the Gandalf Region

– After 5 years of the expiry of the deed, the plot or building plot must be built on

Property value and payment capacity

When signing the loan agreement, you may not own full ownership or usufruct of another building plot, lot or house. You must also be able to repay the social loan. This means that you must have a monthly income that is high enough to meet the normal family needs in addition to paying the loan. In addition, it is also necessary to have own resources available because the costs for the notary can not be borrowed within the social loan.

Amount of loan amount

When you obtain a social loan, you will be faced with a maximum amount of home loan. This maximum amount is:

– When buying a house, building plot or lot: The purchase price or estimated sales value

– In the case of new construction: the cost price of the works or the estimated values ​​thereof

– When taking a previous loan: The sum of the debts and amounts

The loan amount of the social housing credit may never exceed the estimated market value of the property. In determining the maximum loan amount, account is taken of the activities that may have to be carried out in order to meet the standards in the field of health, safety and quality of living. These are necessary activities and for that it is compulsory to borrow.

Interest rate

The interest rate is calculated on the basis of a number of data. This concerns your taxable income, family composition, the location of the house, plot or building plot. The current interest rate fluctuates between a minimum of 2% and a maximum of 3.59%. You can get a discount on the interest if you meet certain conditions. You are eligible for this discount if you have a seriously handicapped child and if your home is located in a core city or in the Gandalf periphery around Brussels. The family situation plays a role during the term of the social loan. If this situation changes, it is possible that the interest on the loan also changes. When changes occur in your family situation and / or your income, the interest rate can therefore change. But the interest rate never rises above the regular fixed interest rate in the contract and can not fall below the minimum interest rate.

Apply for social loan

You have a home in mind and meet the conditions for a social loan. Where the most important conditions are about your taxable income, location of the house and the maximum sales value. You can then apply for a social loan and soon be a home owner. You decide yourself which of the approved credit institutions for a social loan you are submitting the application for. With them you discuss the possibilities and a loan agreement is established. After final approval of your application, the file is complete. In the loan deed all conditions of the social loan are drawn up, together with your notary you sign this deed. After you have signed, you are really the proud owner of your own home. A dream that you did not think could become reality.

What if I can not repay my loan anymore?

You have taken out a loan. With a fixed income you can pay part of this loan every month. With this approach, you have also taken out the loan. A repayment plan has been drawn up with the help of your fixed income, so that you know exactly how much you have to repay each month. It can happen that you are short of cash and can not pay this monthly payment. But what if you suddenly get fired? What if you come into the sickness law? Then you can no longer meet your monthly payment obligation.

With a fixed income it is very easy to take out a loan. Yet it can happen that this fixed income suddenly disappears. This of course has a big influence on the repayment of the loan. You can not pay the monthly repayments anymore. What can you do then? Good preparation is always half the work. Of course you can never say for sure how long you have a fixed income. That is why it is wise to have good budget management during the loan. Keep an eye on how much you spend each month and provide a buffer. This way you always have a back-up in times of need.

A bit too late

It is not a bad thing to be late with the monthly repayment. If you still make the payment within the short term, there is no problem. It only becomes a problem when you can not pay. In this case, the creditor can call in a bailiff or collection agency. It is wise to let you know in time that you can no longer pay the loan. Banks and lenders are often willing to see if new arrangements can be made if you clearly outline your situation. You can often make a payment arrangement with the lender, whereby a new repayment term is agreed. For example, you may be able to pay a lower amount every month, spread over a longer period.

It is wise to take a look at your financial situation. There are always expenses that you can limit. By cutting back, you may be able to repay your loan normally. If you run multiple loans, that may be less easy. Then it makes sense to see if you can borrow cheaper from another lender. It may be useful to take out a loan to repay the open amount of your other loan, especially if this lender offers lower interest rates.

Do I have to provide a guarantee when taking out a loan?

A loan can easily be closed. Repayment terms are set and the amount of the repayment is often fixed. In financially uncertain times, banks and lenders are more hesitant to issue loans. In order to accommodate you as a customer, financial institutions can ask for a guarantee. In this way they provide more security for themselves. But is a guarantee always a requirement?

A loan with a guarantee

With a guarantee you provide more security at the financial institution where you lend. You provide a financial guarantee with the aid of a guarantee. With many loans, however, you are not obliged to give a guarantee. Nevertheless, your lender may ask for a deposit. This guarantee may then consist of securities or a property. You can think of cash receipts, shares or bonds. These are temporarily put in custody to the lender during the term of the loan. If you as a borrower no longer want or can not repay the money, the lender has the possibility to sell or collect the financial resources from the guarantee. In this way, the lender always has the guarantee of a repayment of the loan, or in the form of money, or in the form of a guarantee.

Loans with a guarantee

One of the most well-known loans with a guarantee is the mortgage loan. This loan can not be closed without a guarantee. When a mortgage is taken out, a guarantee is therefore always mandatory. The mortgage loan gives the bank a lot of security. Your house is seen as collateral. If you are unable to repay the loan on time, the lender becomes the owner of the collateral, so that the loan can still be repaid. The lender then has the opportunity to sell the collateral, in order to be able to repay the loan.

The car loan also requires a guarantee. Car loans often have a lower interest rate than other loans, such as the personal loan. This is because the car loan requires a collateral. To request a car loan, you must prove that you want to use the loan for a car. The agreement usually states that the car serves as collateral (guarantee) for when the installments can not be paid. Because of this type of security interest rates can remain lower and the lender always has a certain form of payment.