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Spaargids.be It is never easy to buy a house yourself. Certainly not if you have a relatively modest income. However, you may be able to take out a loan through the Flemish Housing Fund. When do you apply for such a loan? And how much cheaper is it compared to a home loan from the bank? Spaargids.be lists everything.
11 percent more Flemish housing loans
One billion euros. The Flemish Housing Fund – i.e. the Flemish government – provided Flemish people with at least this much budget to buy or renovate a house in 2023. More and more people are finding their way to this solution. From January to September 2023, the Flemish Housing Fund received 5,675 loan applications, around a thousand more than the previous year. Of these, 4,798 had already received the green light at the beginning of November 2023, which corresponds to a total value of 1.068 billion euros, i.e. 11 percent more than in the entire 2022 working year.
Are you applying for a home loan from the Flemish Housing Fund? Read more about the requirements to receive the green light here.
Why is such a loan interesting?
In short: Because you can borrow the entire amount from the Flemish housing fund, for example to buy a house, including registration fees and notary costs. This is in contrast to the bank, where you have to raise 10 to 20 percent of the purchase price yourself.
In addition, you can borrow from the Flemish Housing Fund at a cheaper interest rate. The exact interest rate depends on your income, your family situation, the term of your loan, the location of the house and the interest rate on twenty-year Belgian government bonds. For example, you will pay less interest if your income is lower or you live in a more expensive community.
How much less are you currently paying?
Suppose your family has two dependents, both children under the age of six. You are applying for the loan with two people, your net annual taxable income is 60,000 euros and you would like to borrow 200,000 euros for a house in Aalst in twenty years. Then borrow from the Flemish Housing Fund at 3 percent. Do you have half as much taxable net income every year, namely 30,000 euros? Then the rate is only 2.19 percent. The interest rate adjusts every five years based on your marital status and income.
On the other hand, anyone who borrows 200,000 euros from the bank over twenty years, with a fixed interest rate of five years, will soon pay 3.80 percent. Additionally, you cannot borrow the full purchase price from the bank.
Singles? You can also take out a construction loan and you should pay attention to this.
When can you apply for a loan through the Flemish Housing Fund?
Borrowing from the Flemish Housing Fund can therefore be significantly cheaper than taking out a loan from the bank. However, it goes without saying that not everyone is eligible for the program. First of all, the sales value of the house or apartment must remain below a certain maximum amount, depending on the location of the building and the number of survivors.
In addition, your income must be within a certain minimum and maximum limit. Your family composition and the location of your house or apartment also play a role here. In addition, you are generally not permitted to have sole ownership of a house, building plot or land or to own or have given usufruct, lease or building, not even partially or through a company. You must still be sufficiently solvent and therefore have enough left over each month to cover normal family needs.
Are you not eligible? Find the cheapest real estate loan on the regular market here.
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Read also on Spaargids.be:
Buying a house without having to take out a loan: Why is buying on a pension basis (not) interesting?
High mortgage interest rates are slowing down home sales: you are paying more for the same loan today
Can you still take out a building loan as a pensioner? “The financial institution will apply for this insurance”
This article was brought to you by our partner Spaargids.be.
Spaargids.be is an independent comparator of banking products and looks for competitive prices and better interest rates.
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