Belgium Mortgage
We have known since 2003 how and where
Key themes
Large loan amounts
For larger purchase sums (from about €1 to €1.5 million), there are banks that offer their services especially for this category of non-resident buyers. These are Private banks or special departments of regular Belgian retail banks. Therefore, in addition to the annuity mortgage, the installment-free (Belgium: “end of term” or “bullet loan”) mortgage is also offered under certain conditions. The financing setup will be designed to be fiscally optimal.
A repayment-free mortgage can be offered for wealthy clients who are willing to have part of their assets managed by a private bank specializing in this. For example, it is often possible to borrow 100% interest-free, provided that 50% of the loan amount is placed with the bank as “Assets Under Management.
An integral part of the service provided by the banks serving this category of customers is to minimize Belgian taxes. To this end, they advise in consultation with you and Hypotheek & Buitenland on the design of the financing and its administrative set-up.
Financing without a bank
Alternatives to financing a Belgian purchase project is to find one or more financiers outside of commercial banks. This could include friends or family or other wealthy “third parties” providing a loan. Crowdfunding (or peer-to-peer financing) platforms allow supply and demand to find each other for this type of financing. A specialized platform is being created for financing business plans and investment properties in Belgium. Please leave your details via the contact form if you wish to be kept informed about the formal launch date; both as a prospective investor and applicants for funding are invited to leave their details.
If supplemental bank financing is required or if commercial banks do not offer a possibility then friends or family can step in with a loan or donation. Even then, it is possible to establish a mortgage guarantee with the Belgian house as collateral.
Through a crowdfunding platform, financing can be arranged for entrepreneurs and real estate investors. Investors can thus diversify their investments and benefit from interesting returns. Are you looking for financing for your company or real estate investment in Belgium or are you interested in investing in such projects with mortgage guarantee please leave your details via the contact form or by e-mail. You will be informed of the formal launch of the platform specialized in this.
Funding rate
The maximum financing rate in Belgium for non-resident buyers is currently 70% – 80% of the purchase price. Hypotheek & Buitenland works with a number of Belgian banks that can also finance Dutch people who want to finance a main residence or vacation home.
For Dutch people with income from the Netherlands who want to buy a primary residence in Belgium, in practice, up to 80% can be financed. Occasionally they go up to 90% of the purchase price, but that is reserved for younger buyers. Also for residents of Belgium, the maximum borrowing rate is 80%-90%.
For non-residents of Belgium, the maximum financing rate is 70% if a vacation home or rental property is purchased. There are some Belgian banks that can also finance non-resident buyers.
There are currently no Dutch banks financing houses in Belgium.
The lower the loan rate the lower the risk to the bank and the sooner a bank will usually be willing to grant a mortgage loan. Keep in mind that it is not true that the lower the loan amount the easier it becomes to get a mortgage. For loan amounts under €100,000, the banks are not keen.
If the equity comes into the purchase of another loan, that is a problem for some banks. People want to see their own money come from savings.
Non-residents means buyers who are not yet (tax) residents of Belgium at the time of purchase.
Testing on income
Belgian banks also test whether your income is sufficient to get a mortgage. Banks generally allow up to 45% of net income to be spent on all loan charges, rent and alimony if buying as a couple.
Belgian banks require that income from salary derives from permanent employment. The Dutch phenomenon of the declaration of intent is not known in Belgium.
It is possible to get a mortgage if the income comes from your own business. See further explanation on this under UNDERTAKERS
Belgian banks look at net retirement income from a certain age. Exactly what age varies from bank to bank. Sometimes they then use a certain weighting percentage (“pondering”) of current income as future net retirement income, sometimes they look at the actual net pension to be received.
If the pension income has already started, Belgian banks will check with that net pension income provided it is a pension guaranteed for the duration of the mortgage requested.
Belgian banks include existing rental income as income a number of Belgian banks also include future rental income as income.
Belgian banks do not include income from assets as income to be included in the assessment. It can only serve to provide additional support for the soundness of the mortgage application.
For households with gross annual incomes higher than €150,000, there are more mortgage options. See more on this at BIG LOANS
There is no review by Belgian banks of their prospective customers’ existing spending patterns. However, people like to see that there is a certain “savings capacity”; or in other words, that there is money left over to save each month.
Belgian banks do not include income from WAO or WIA as income. Income from private disability insurance is generally included as income.
Entrepreneurs
Even if the income comes from self-employment, it is possible to get a mortgage from a Belgian bank. However, one is particularly reluctant to include profits not distributed to private parties that have remained in the company.
Belgian banks are looking at profits for the past three years. At least 3 years of annual figures must be available and the company must exist for at least 3 calendar years. In addition to profits, they will look at sales trends and the equity position on the balance sheet.
The own B.V. must exist for at least 3 years and must have a healthy profit and sales development. The balance sheet should also look healthy with positive equity and an acceptable current account ratio with the owner. Belgian banks count as income the salary and actual dividends paid.
If there is a multi-company structure, it is important to clearly identify the results and ownership relationships.
Belgian banks do not want to provide a mortgage to a foreign company.
Application process
There is only one chance to make a first impression at a bank: as far as we are concerned, it should be overwhelmingly good. After choosing a particular route toward realizing the desired mortgage loan (see also “preparation”), the application process begins. Five stages can be distinguished in the application process: 1. preliminary application 2. file, 3. submit, 4. monitoring and adjusting, 5. conclusion.
To verify that an application is indeed – in principle – feasible, a preliminary application is often first submitted to a Belgian bank.
A well-documented application is essential for a successful application. Unclear or gaps in documentation create the perception of additional risk on the part of the bank. Together, the documentation is completed to the point where all essential elements are substantiated.
Hypotheek & Buitenland creates an extensive cover letter explaining all the elements and translating them so that everything is 100% clear to the Belgian bank. The application is completed with the bank’s application form after which it is submitted.
Once submitted, additional questions or requests for additional documents sometimes follow. Ambiguities are clarified and additional substantiation in the form of documents is provided. Where necessary, if the situation calls for it, the application will be adjusted. If an application is unexpectedly rejected then an attempt will be made to change the bank’s mind by convincing the bank that they are wrong. Should that fail, consultation and, if possible, application for a mortgage with another Belgian bank will follow.
When the risk or credit committee of the relevant bank has given its approval and the appraisal also shows a sufficient value, the bank will give its final approval and send the credit offer and all legally required documentation. These documents contain all the details of the mortgage being offered (the formal loan offer) and also list the risks, warnings and obligations associated with the mortgage (standard information document). After observing the legally required reflection period, the loan offer can be accepted and the mortgage can be formalized and the purchase completed at the notary. If desired, with the help of Hypotheek & Buitenland and the Belgian bank, a bank account in Belgium can be opened and the necessary insurances can be arranged.
The processing time for a mortgage application in Belgium varies from bank to bank and from process to process. Counting from the time the fully documented mortgage application is submitted, with some banks you will know where you stand after a few weeks. With other banks, it takes up to 2 months to get a full agreement.
Once the bank’s credit committee has given an in-principle approval on the mortgage application, the appraisal (valuation) will be launched. The estimation should be self-initiated. Banks all use their own list of estimators whose estimates are accepted.
There are no translations of Dutch-language documents involved when applying for a mortgage in Belgium.
Mortgage Types
Belgium has a different financing culture than the Netherlands. Belgian banks take a more traditional approach, focusing on paying off the mortgage. Therefore, the annuity mortgage (mensual mortgage) is by far the most important mortgage form offered. It is not unusual in Belgium to receive a discount on the interest rate if side products – such as debt balance insurance (life insurance) or fire, home insurance – are purchased.
The annuity mortgage is the most widely used form of mortgage in Belgium. However, it is calculated slightly differently than we do. In the Netherlands, the monthly charge is calculated on an annual basis and in Belgium on a monthly basis. This is why in Belgium we speak of mensualities and not annuities. In addition, Belgium has no mortgage interest deduction, which is why the interest-free mortgage has never become popular.
Redemption-free is currently offered on a very limited basis in Belgium to non-resident customers. Only for a certain profile of customers with high income and assets are there options for a grace loan. There are also some Belgian private banks that do so on the condition that a certain portion of private wealth will be invested under their management.
Most Belgian banks do not get excited about loan amounts below €100,000 with a non-resident customer; this is because they are not of sufficient commercial interest. Hypotheek & Buitenland therefore uses €100,000 as the lower limit in terms of loan amount.
Belgian banks offer a wide range of interest rate formulas. It is important to realize that Belgian banks have a legal obligation to build an interest rate cap into their interest rate formula when the fixed rate period is shorter than the maturity. So in addition to fixed interest rates for the entire term, formulas such as 10/5/5 cap 2 are offered. So here the interest rate offered is fixed for 10 years. After those 10 years, the interest rate will be fixed for 5 years and then for another 5 years. The interest rate offered after 10 years cannot be more than 2% higher than the initial interest rate offered.
The interest rate level offered in Belgium to non-resident customers is difficult to compare with Dutch mortgage interest rates due to the fact that interest rate formulas are always offered in Belgium that include an interest rate cap. In general, however, it can be said that the Belgian mortgage market has many providers who compete vigorously with each other. As a result, mortgage interest rates in Belgium are generally quite competitive.
The Belgian financing culture is focused on paying off a mortgage quickly. Therefore, maturities of 30 years are not common. For non-resident buyers, terms of 20 or 25 years are common. See more information on maturities under “Age and maturity”
Belgian banks charge filing and reservation fees. Generally, these are limited to a few hundred euros. In addition, notary fees are associated with the execution (passing) of the authentic deeds (deed of credit opening; deed of mortgage power of attorney; deed of mortgage assignment).
Purchasing debt balance insurance (term life insurance) is usually highly recommended. Most Belgian banks will require debt balance insurance.
When repaying a mortgage loan early, it is legal in Belgium to charge a reinvestment fee (penalty) of up to 3 months the interest on the amount repaid early. However, this fee is not payable in the event of full or partial early repayment of the outstanding capital balance due to the death of a borrower.
A bridging loan is possible if the house being bridged on is also located in Belgium. Bridging on a house located in the Netherlands or a country other than Belgium is not possible.
The release of surplus value through a mortgage is only legal in Belgium if the surplus value is used to buy another property. The scope for releasing money for consumption purposes is particularly limited in Belgium.
Duration and Age
Regarding the age aspect, the financing culture in Belgium is different from that in the Netherlands. The maximum age at which a mortgage must be terminated is at age 70 or 75. This aspect has an impact on the maximum term and therefore the feasibility of a mortgage application.
For non-resident buyers, terms of 20 or 25 years are common.
The age at which a mortgage is applied for has an impact on the maximum amount that can be borrowed. This is because the maximum amount to borrow is lower when the monthly payments are higher. And monthly payments are higher with a mensual (annuity) mortgage when the term is shorter.
Purchase route Belgium
When you have found the house you want to buy then the whole process of buying in Belgium starts. Below are the different steps of the process
Once the house is found then the first step is to agree on the price. Keep in mind that there are quite a few cowboy-type types operating as real estate agents who are very adept at pressuring a prospective buyer to just agree to a purchase price and sign a sales compromise (purchase agreement) as quickly as possible.
Start the application process well in advance. You may already be able to cut corners by submitting the application as soon as possible. See “APPLICATION PROCESS.
In doubt about the structural condition of the house? Then have a building inspection performed. Contact Mortgage & Abroad for advice on this.
The buyer and seller jointly choose a notary.
A Belgian notary is similar from the role of the Dutch notary. A Belgian notary is impartial and has the role of verifying a multitude of elements and ultimately – on the one hand – executing (passing) the deeds and, on the other hand, overseeing the flow of money from the buyer to the seller, and collecting the necessary taxes and registration fees, on behalf of the Belgian government.
We can assist you in arranging a notarized power of attorney to complete the purchase from the Netherlands. We have contacts with a Dutch notary where the process of making the power of attorney can be arranged “remotely” (via zoom/teams).
The initiation of a compromise (purchase agreement) is usually done by the Belgian broker, but sometimes it is the notary who makes a draft compromise.
Including a condition precedent for financing in the compromise (purchase agreement) is very common in Belgium.
The outcome of the mortgage application process is the receipt of the unconditional loan offer. After accepting the loan offer, the bank is ready to release the mortgage funds.
When the sale is imminent, your home should be insured for fire (and theft). Hypotheek & Buitenland has contacts with parties who can provide competitive quotations for this purpose.
Having a Belgian bank account is useful when you own a home in Belgium. Part of the mortgage application process often includes opening a Belgian bank account. For this, an appointment is made with the mortgage lending bank to open a bank account locally.
The transfer of the property is ratified by a Belgian notary. The notary takes care of registering the buyers as the new owners of the house on the one hand, and arranges for payment of the purchase price on the other.
How long the buying process takes depends on what delaying elements are involved. Some trajectories take 3 weeks some as long as 6 months. A common deadline is generally 6 weeks.
New and remodeling
It is possible as a non-resident of Belgium to get a mortgage for new construction or a purchase + renovations. However, banks impose conditions on this. One wants to finance construction projects carried out by official Belgian contractors. Depending on the bank, (partial) self-build can also be financed with a mortgage.
The maximum financing rate for new construction is applied to the sum of the land purchase and total construction cost. For remodels, the maximum financing rate is applied to the sum of all remodels for which quotes are available from contractors.
The process of getting financing done for new construction or purchase + renovations is more intense than the process of a purchase (existing construction). Hypotheek & Buitenland also accompanies these routes, but at a higher rate for the service compared to financing existing construction.
An appraisal (valuation) will determine the value of the property before and after renovations. If the value of the house before and/or after completion is less than the sum of purchase + renovations then the bank may adjust the maximum loan amount accordingly.
A fully documented building permit application should be made to local authorities. The purchase of building land often includes a condition precedent in case the building permit is unexpectedly not granted.
Some Belgian banks also finance (partial) self-construction (conversions that one wants to do oneself).
Release of the mortgage funds (construction installments) is made from construction deposits on demand from the client as the works progress and invoices come in. The condition is that a mortgage guarantee is placed on the land by mortgage deed. With some banks, the mortgage remains repayable until the construction deposit is withdrawn in its entirety (usually with a maximum term of max 2 years). Interest is then paid on the released funds and a commitment fee on the mortgage funds not yet released.
Rental
Seasonal rental of a Belgian vacation home is quite common and mortgage lending Belgian banks are basically fine with it. Owning a vacation home is taxed for tax purposes in Belgium, as is renting it out. As a result of the Belgian – Dutch tax treaty, Belgium may levy taxes on the (notional) income from the vacation home (withholding tax and personal income tax) and the rental income (personal income tax).
A (vacation) home in Belgium is taxed through the so-called real estate withholding tax; this is a tax on the (notional) income from real estate based on the indexed Cadastral Income (Cadastral Income (KI) is the average normal net income (net rental value) that the property would yield during one year. It is a measure used in Belgium in the same way as the WOZ value in the Netherlands). The property tax could be compared to the owner-occupied home tax in the Netherlands. The amount of this tax varies from region to region. The current levy rates are as follows:
- 2.5% of the CI payable tax for homes located in the Flemish Region
- 1.25% of the CI tax payable for homes located in the Walloon Region and the Brussels Capital Region
The vacation home – as opposed to the main residence – is taxed in Belgium with personal income tax (the Belgian equivalent of Dutch income tax). The basis used is the indexed KI, increased by 40%, and not the actual rental income. It is levied at the progressive personal income tax rate. Note: Online vacation rental platforms such as Airbnb are required to inform the Belgian tax authorities of rental income. The operation of a B&B can be considered a business activity by the Belgian tax authorities, where the income will also be taxed as professional income (business income). It may also be the case that if you rent out several houses that the Belgian tax authorities consider these activities as business income.
If the vacation home is sold again within five years, you will pay personal income tax on the capital gain you make on the home. After a period of five years, this gain is exempt from tax.
Belgian banks have no problem with seasonal rental of a house purchased with a mortgage based on existing income. What is important is that the property is not too commercial in nature. So existing Bed & Breakfasts, hotels, or properties with multiple outbuildings to be rented out or lots of rooms (with separate bathrooms) may lead the bank to conclude that there are plans other than purely private use and occasional seasonal rentals. When banks suspect that prospective clients have plans to “change course” and start or take over a tourism business in Belgium, they conclude that the existing income will end and that the requested mortgage is in fact business financing.
The tax treaty between the Netherlands and Belgium provides that Belgium may levy taxes on assets in the form of real estate located in Belgium such as a vacation home. As a result, a Belgian house is taxed in Belgium and no longer in the Netherlands (box 3). Incidentally, the house must still be declared in the Dutch tax return, but the Netherlands will grant a double tax relief.
Renting out a Belgian home partially financed by a mortgage can be an interesting retirement supplement. When rental income covers the mortgage and other expenses then the house “comes to you” because after full mortgage repayment there remains a mortgage-free home that generates rental income.
There are several rental platforms for second homes. These platforms offer services of varying degrees. From rental mediation only (via a booking module) to complete outsourcing of rentals including local handling
Acceptance of collateral
Belgian banks are somewhat critical of the type of property to be financed. Houses that are not habitable or very a-typical or obsolete properties may not be accepted.
Belgian banks do not want to finance all houses. Only those houses that are sufficiently current in their eyes, i.e. houses that – should the (financial) need arise – can be sold again somewhat smoothly, are they willing to finance.
Homes that are in such poor condition that they are not habitable will not want to be financed by a bank unless the financial plan includes a budget for remodeling. Core elements of this are that at a minimum, a house should have running water, a somewhat up-to-date electricity supply, heating, a sewer connection or functioning septic tank, a kitchen and a bathroom.
Special objects such as castles or water mills are more difficult to finance. There is a (very) small market for this type of special property and sales can take years. Even houses that are very A-type for the region still want to be a problem.
Houses or properties where it is abundantly clear to a bank that they will be operated as commercial properties in the future (for example, in the tourism sector) are not financed as (second) homes based on existing income.
Funding business plans
Hypotheek & Buitenland does not currently accompany any applications for business financing in Belgium. Thus, we cannot help with mortgage applications for starting or taking over a property in the tourism sector, where it is clear that the existing income in the Netherlands will be lost. The services of Mortgage & Abroad are currently limited to mortgage advice and mediation for the purchase of a second or vacation home. For advice on business financing, see the section FINANCE WITHOUT BANK
If you have plans to start / take over a Bed & Breakfast , operate gîtes, buy or start a (mini) campground or hotel where the property to be purchased in Belgium is central and where the future income stream resulting from the business activities is required to meet the monthly mortgage payments, then that no longer falls under applying for a regular mortgage based on existing income. That’s when enterprise financing is involved. If you want to qualify, then – as in the Netherlands – a business loan will have to be applied for at a local bank where the business plan – and thus the future expected income stream – is the basis.
Hypotheek & Buitenland cannot guide you through this type of process and cannot assist you in applying for business loans with Belgian banks. Our services are limited exclusively to advising and mediating the acquisition of mortgage credit where an existing and steady income is the basis for the purchase of a primary residence or a second or vacation home.
An increasingly common route for funding business plans is to find a loan through a crowdfunding platform. For advice on this type of business financing, see the section FINANCING WITHOUT BANK
In some exceptional cases, it is possible that a property in Belgium – where the plan is to do business there in the future – may be purchased initially as a second home. This is possible only if a bank is convinced that there are no plans to move to Belgium in the near future and build a new life (with a new source of income) there.
Purchase and ongoing costs
The “buyer’s fees” (also known as “notary fees”) generally include the total costs due in taxes and notary fees. These costs are twofold: one part the costs related to the purchase of the property and the second part related to the notarization of the mortgage. In Belgium, registration fees (transfer tax) vary from region to region.
Registration rates have been a standard 12% in the Flemish region (Flanders) since Jan. 1, 2022. A reduced rate of 3% applies in Flanders for the purchase of a home that becomes the principal residence.
Registration rates are 12.5% in Wallonia (the Walloon region). When a “modest home” is involved, a 6% registration fee is applicable under certain conditions. The benefit of the reduced registration fee applies to homes with a cadastral income of up to €745, to be increased to €845, €945 and €1,045 as a household gives more children. The benefit of the reduced registration fee is also in place for homes located in an area with “real estate pressure” and that do not exceed a certain purchase price (varies by municipality). For houses that become the principal residence (and continue to live there for at least 3 years), an abatement (flat rate reduction/reduction) is applicable. The abattement amounts to no registration fees being due on the first €20,000 of the purchase price (effectively, therefore, a discount on registration fees of €2,500).
Registration rates are 12.5% in the Brussels Capital Region. For houses that become the principal residence (within two years at the latest, and remain so for at least five years) and have a purchase price of less than €500,000, an abatement (flat rate reduction/reduction) is applicable. The abattement amounts to no registration fees being due on the first €175,000 of the purchase price (effectively, therefore, a discount on registration fees of €21,875).
Real estate agents in Belgium are allowed to set their own rates. In a sale, you pay between 2% to 6% of the sale price on average. 3%, however, is a very common rate. Want to find out how much a real estate agent charges? Real estate agents are required to display their rates in a visible place (for example, in the window or on their website).
The Belgian notary will charge fees + VAT, and in addition, some fixed cost components such as administrative and property transfer fees are at issue. These costs do not vary by region and are therefore the same throughout Belgium. There are also costs involved in notarizing the mortgage (the mortgage mandate). Here fixed costs are involved (between €700 and €1,050) and in addition variable costs for notary’s fee + VAT (higher with higher mortgage amount).
In addition to the buyer’s fee, other costs are often involved such as costs for a building inspection, the appraisal (valuation) and financial advice.
A house in Belgium is taxed through the so-called real estate tax; this is a tax on the (notional) income from real estate based on the indexed Cadastral Income (Cadastral Income (KI) is the average normal net income (net rental value) that the property would yield during one year. It is a measure used in Belgium in the same way as the WOZ value in the Netherlands). You could compare the property tax to the owner-occupied home tax in the Netherlands. The amount of this tax varies from region to region. The current levy rates are as follows:
– 2.5% of the CI payable tax for homes located in the Flemish Region
– 1.25% of the CI tax payable for homes located in the Walloon Region and the Brussels Capital Region
If the vacation home is sold again within five years, you will pay personal income tax on the capital gain you make on the home. After a period of five years, this gain is exempt from tax.
The tax treaty between the Netherlands and Belgium provides that Belgium may levy taxes on assets in the form of real estate located in Belgium such as a vacation home. As a result, a Belgian house is taxed in Belgium and no longer in the Netherlands (box 3). Incidentally, the house must still be declared in the Dutch tax return, but the Netherlands will grant a double tax relief.
You can find detailed information about the Belgian tax rules on the Belgian tax website: https://financien.belgium.be/nl/particulieren/belastingaangifte/tarieven-belastbaar-inkomen
Good preparation
Being well-prepared is often half the battle and, once you get deeper into the buying process, it prevents stress and panic attacks. In short, to be well prepared is to buy carefully and in a controlled manner. We can assist you in the preparation process. We have an extensive network of specialists in the industry.
Is buying and owning a home in Belgium really for you? And how do you address it? There are legions of books available on this subject. We are happy to give you tips.
If you do not know what you have to spend then you cannot search for a house. Get advice on this; based on available equity and your borrowing capacity, the buying budget can be determined. Contact us for a free exploratory “quick scan” and possibly a preliminary application to a Belgian bank.
Good planning gives overview and thus control of your project. Create a timeline showing approximately how much time you will spend on each stage of the buying process.
Avoid dwelling too much on multiple thoughts (regions). Focus on a certain Belgian region and thus avoid that too broad an orientation will take you too much time and it will only be searching and your plan will never become concrete
To be prepared for applying for a mortgage later, it is very wise to prepare for it at this stage. In fact, a lot of documents will be requested regarding your identity, income, expenses and future collateral.
If you have never bought a house in Belgium before, it is unwise to want to handle the purchase without outside help. You will find that it is impractical to have to reinvent the wheel on every subject. Moreover, a good advisor makes his money back. Map out which advisors you can approach.
The role of the notary in Belgium is somewhat similar to the role of the notary in the Netherlands. A Belgian notary also checks and examines whether what is stated in a purchase agreement is correct. This includes the property’s registrations, the status in terms of any mortgage collateral that is on the property.
We can help you prepare a notarized power of attorney for the completion of the purchase from the Netherlands (i.e. without having to travel to Belgium in person to sign at the notary’s office). We have contacts with a Dutch notary where the process of making the power of attorney and apostille can be arranged remotely (via zoom/teams).
Especially with somewhat larger purchase amounts, it is wise to think about “estate planning” in advance; in other words, avoiding paying (too much) inheritance and inheritance tax in the future. In Belgium, paying double inheritance tax on the property (both in the Netherlands and Belgium) is real! Get advice on this.
Mortgage transfer
Refinancing an existing mortgage on a Belgian home is possible with some banks, but on modified terms. Furthermore, it is only possible to transfer loans that are notarized and with a mortgage guarantee. The costs can be significant. Especially if a high loan prepayment penalty is involved.
“Revolving” or refinancing an existing mortgage resting on the Belgian home is possible with some Belgian banks. The condition is that the current loan is notarized with a mortgage guarantee. Otherwise, banks don’t want to refinance.
The conditions under which Belgian banks are willing to refinance are often different from those of a regular purchase. Typically, one is more cautious and one looks with critical eyes at the motive for refinancing. This is often reflected in a lower maximum financing rate and a shorter term.
When refinancing/transferring, you will face costs such as deregistering the existing mortgage (hand relief) and registering the new mortgage. But also with the bank’s filing fees, advisory fees and most importantly; the penalties for early repayment of the existing mortgage.
The key question, of course, is whether the costs outweigh the benefits.
