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.
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.
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.