Planning to purchase real estate in Belgium? Then you probably need to get a mortgage! Belgium is among the wealthiest countries in the world. Not to mention a popular tourist destination too! It makes sense that buying a property in Belgium
will cost a lot of money. So much so that you'll need to take out a loan to pay for it! It's the same way in other countries but you'll need it even more here! Luckily, it's not that difficult to get a mortgage in Belgium. It can seem intimidating at first, but as long as you follow the right procedures and meet specific conditions, you have nothing to worry about!
Are You Eligible to Get a Mortgage in Belgium?
You're probably wondering if you're eligible to get a mortgage in Belgium. Well, as long as you're under the age of 65, you are. Of course, your financial situation will still play a vital role as well, but for the most part, there are barely any restrictions regarding mortgages in the country. Just like how you're allowed to buy real estate in Belgium, your residency status won't matter in this situation. So go ahead and apply for a mortgage if you intend to purchase a property here. There's nothing to stop you!
What Do You Need?
For the most part, all you really need is proof of identification (your valid passport will do) and proof of income. For the latter, you can show your employment contract, invoices of your clients, and the like. Some financial institutions might also ask for proof of address. If applicable, you can simply show your lease contract or utility bills. Remember that the main condition lenders have set when it comes to getting a mortgage is that you should be under the age of 65. So as long as you're still young enough, there's a big chance you'll get that mortgage!
What are The Different Types of Mortgages in Belgium?
There are three main types of mortgages in Belgium. The first is the fixed-rate mortgage, which has you paying the same amount every month throughout the duration of your loan. This is the most common kind of mortgage that many homeowners have gone for. The second is the variable-rate mortgage, wherein the costs can go up or down depending on the market. Though it's incredibly risky, it has lessened the costs for many borrowers. And finally, there's the combined-rate mortgage. This is where lenders reduce the rates of the mortgage provided you meet certain conditions like opening a local bank account
, getting insurance, and more.
How Can Your Mortgage Affect Your Taxes?
Did you know that you can list down your mortgage costs as tax deductibles? If you took out a mortgage loan on real estate in Belgium, this is one of its many benefits. Though do note that it's more applicable to those who use the property as their main residence. In this situation, you're given a deduction budget, which comprises interest, insurance premiums, and capital repayments. With all of these included, you can deduct a maximum of €2,560.00 from your tax returns. Not a bad deal, right?
Buying a property in Belgium will likely lead you to get a mortgage here. And to ensure that you get that loan no matter what, it's better to know a little about the basics. This is to ensure that you won't get rejected the moment you apply for one!