Collateral acceptance Belgium

Acceptance of collateral

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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.