Mortgage loans and credits: best options and how to qualify
What is a mortgage and what are the different social loans?
What is a mortgage?
A mortgage is a type of loan that can be used to purchase, build or renovate your home, among other things.
A mortgage differs from an instalment loan in that the mortgage is taken out on the property which serves as collateral to ensure the proper execution of the loan contract.
Finalising a mortgage is a crucial step in the property-buying process. It’s important to consult with multiple banks and credit professionals to understand all the conditions and ask any questions you may have.
For more information, Opens in new windowconsult the members section of Febelfin, the Belgian financial sector federation.
Social loans
Mortgage loans from the Housing Fund
The Opens in new windowBrussels-Capital Region Housing Fund offers mortgage loans at a fixed interest rate of between 3.25% and 5% (depending on the composition of the household (dependants) and its income) under Opens in new windowcertain conditions to prospective buyers who are unable to finance their project with a bank loan because they do not have sufficient income and/or own resources.
To be eligible for a loan from the Housing Fund, certain conditions must be met. These conditions generally relate to the location of the property, the household's eligible income, the maximum value of the home, the maximum loan amount and the interest rate. If you are interested in a loan from the Fund, we strongly advise you to start by running a Opens in new windowsimulation on the Fund’s website.
Mortgages from social credit companies
Social credit companies can offer reduced-rate mortgages to people who cannot find an affordable solution in the private banking market.
Social credit companies are privately-owned companies (often owned by traditional banks and insurers), but their purpose aligns with a public service mission. Indeed, their primary goal is social: to provide access to decent housing for as many people as possible. These companies are approved by the Brussels-Capital Region and supervised by the Financial Services and Markets Authority (FSMA).
The basic condition for obtaining such social loans is that the property you wish to acquire must be classified as "social" and meet specific criteria relating to its market value.
List of social credit companies:
Social loans from Crédal
Crédal offers Opens in new windowsocial consumer loans ranging from €500 to €10,000 to individuals excluded from traditional banking credit who need financing to carry out their life projects. These social loans can be used, for example, to finance home improvements such as heating, sanitary installations, fittings and repairs.
