Build / buy your property with Crediloin Mortgage Loan
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You wish to offer you the house of your dreams? Do you spend all your free time peeling the real estate sites or thinking about the layout of your future home? And if the time was right for you to concretize your projects, to finally go from dream to reality?
We know that building or buying real estate requires money… a lot of money. And if, despite your attempts, you have not (yet) managed to win the jackpot at Lotto or Euromillions, there is still a solution: take out a mortgage loan. Good news: current rates are relatively low. By subscribing yours with Crediloin, you will enjoy more advantageous conditions. So, tried?
Mortgage credit explained
Mortgage credit: definition
As L’Actualité du droit Belge explains, mortgage credit is “a special credit, regulated by the legislator and the law of 4 August 1992”. It describes mortgage credit as “a loan whose purpose is the financing of the acquisition or preservation of real property rights, generally the right of ownership. “
In other words, mortgage credit is a credit whose main purpose is to finance the purchase or construction of real estate.
The mortgage or mortgage loan is aptly called “mortgage” because the lender enjoys a mortgage on the home until full repayment of the debt. This means that, in the event of default of payment, the latter reserves the right to repay the loan by taking over the property. The latter is therefore ” pledged “.
Mortgage credit: fixed rate or variable rate?
Mortgage credit, like almost all loans, is obviously not granted free of charge. To ensure the profitability of its services, the lending agency logically grabs interest on the amount borrowed. In mortgage lending, these interests may be fixed, semi-fixed or variable. explanations:
- Fixed rate : we speak of fixed rate when the interest rate, and thus the monthly payments, relating to a loan remains fixed during all the duration of this one. By choosing a fixed rate, borrowing it is therefore aware of all the elements that will constitute its loan. Zero surprise.
- Variable rate : interest rates fluctuate. A credit subscribed in January will not necessarily not be grafted an equivalent rate if you had subscribed a few months earlier or later. This rate is actually a function of a benchmark. By opting for a revisable rate, you agree to not know the rate of your credit since it can at any time increase or decrease. Depending on the period, the risk may or may not be advantageous. This is a bet on the future.
- Semi-fixed rate: the semi-fixed rate, also called the revisable rate, is at the crossroads of the fixed rate and the floating rate. It therefore consists of an alternative to the aforementioned solutions. In practice, the first monthly payments of a semi-fixed rate will be invariable. After a defined period, usually 3, 5 or 10 years, this rate may be reviewed and fixed for a new period or may be converted into a variable rate.
Fixed rate, variable rate or semi-fixed rate, you choose. Each option counts its positives and negatives.
Once the type of rate is set, you will still have to determine the duration of your mortgage. As a general rule, you are free to choose between 10 and 30 years. The shorter the duration, the less interest you pay, but the higher your monthly payments. The longer the duration, the more it will cost you in interest but less your monthly payments will be important. It is therefore necessary to find the happy medium.
What conditions of acceptance?
Buying a mortgage is not a trivial matter. The amounts involved are generally relatively high and, by the latter, you agree to repay the monthly payments, regardless of the difficulties encountered.
To ensure your good faith, but also to meet the unexpected, lender organizations reserve the right to ask you for certain guarantees. Among these are the mortgage mentioned above. The monthly payments due will also not exceed a certain percentage of your income (this percentage being subject to variation depending on the situation of each). Finally, mortgage loan and outstanding balance insurance usually go hand in hand. By this, the lender ensures a refund in case of death because even death does not allow to repeal the repayment obligations.
Mortgage loan and tax benefit
The Belgian State, with the aim of facilitating access to property, has set up a system of tax deduction. Recently called “check-habitat”, it comes in the form of an annual tax credit. To qualify, however, a number of criteria must be met. Among these, the obligation to have taken out a credit of more than 10 years and that of occupying the property in question as principal. For more information on the “check-habitat” or to calculate the amount of tax benefit you can claim: visit the SPW website.
Mortgage credit: ancillary costs
In addition to mortgage credit as such, you will need a number of ancillary costs: the outstanding balance insurance discussed above, registration fees, mortgage law, notary fees, fees and allowances. act, etc.
Mortgage loan: some useful links
Buying or building a property is an important step. Before embarking on an adventure like this one, you must inform yourself. If we can help you, these few sites can tell you more. Do not hesitate to have a look.