The mortgage loan, a practical guide

From the search for the property to the release of funds, a mortgage loan follows a well-marked path: estimation of your borrowing capacity, comparison of offers, building of the file, agreement in principle, notarial deed and then release of funds. A broker supports you at every step and negotiates for you.

When buying a property, "notary fees" mainly comprise the registration duties (or VAT on new-builds), the notary's fees and various administrative costs. In Belgium, the rate of registration duties depends on the Region and on whether it is your own and only home.

• Wallonia: reduced rate possible for your own and only home.
• Brussels: allowance under conditions.
• Flanders: reduced rate for the sole owner-occupied home.

Our notary fees simulator gives you an immediate estimate.

The fixed rate stays the same for the entire term of the loan: your monthly payments do not change, which means security. The variable rate is revised periodically (e.g. every 1, 3 or 5 years) according to a reference index, with legal caps ("cap"). It may be lower at the start but carries a degree of uncertainty. The right choice depends on your profile and your tolerance to risk.

The loan-to-value ratio is the relationship between the amount borrowed and the value of the property. A personal down payment (savings, own funds) reduces the loan-to-value ratio and generally improves the rate conditions. The term influences your monthly payment: the longer it is, the lower the monthly payment, but the higher the total cost.

Two types of insurance often accompany a mortgage loan: the outstanding balance insurance (which repays the balance in the event of death) and the fire insurance of the property. In Belgium, the lender almost always requires fire insurance, and frequently makes the rate conditional on taking out outstanding balance insurance. This insurance is not just a formality: it protects your family and your assets. The law leaves you free to choose the insurer (you are not obliged to take the bank's) — we compare for you and make sure you only pay what is truly necessary.

Financing a construction or a renovation is not handled like buying an existing property. The funds are generally released in instalments, as the works progress (structural work, roofing, finishing…), on the basis of progress reports or invoices. During this period, you often only pay the interim interest on the amounts already drawn.

On the Belgian tax and regulatory front, new construction in principle falls under VAT (21%) rather than registration duties, whereas the purchase of land follows its own rules. Some energy-efficient renovations may benefit from regional grants (Wallonia, Brussels, Flanders) or a reduced VAT rate under conditions (e.g. renovation of a home more than 10 years old).

On the insurance side, a building site calls for specific protection: "all site risks" insurance covers damage during the works, and contractors' ten-year liability is governed by law. Once the property is completed, fire insurance takes over. We help you coordinate credit, release of funds and insurance cover so you can approach your project with peace of mind.