For those wishing to buy or refinance a house, various banks in Belgium offer mortgage loans. This article will briefly introduce a few of the well-known banks that offer mortgage loan easily in Belgium. In contrast, the ease of obtaining a mortgage loan may vary depending on individual circumstances and requirements set by the banks.
You will also get the link to each of the banks that give mortgage loans easily in Belgium, so let’s dive into the topic.
How Do Mortgages Operate in Belgium?
Since the financial crisis, mortgages are more frequently offered with a fixed rate of interest for the entire loan duration (up to 30 years, but most frequently 20 years), as opposed to an introductory period of two, three, or five years, as is typical in some other nations.
The best rates are only accessible to those who have more extensive deposits, as one might anticipate. Some banks provide transactions with a maximum loan-to-value of 85%. However, there are more and more loans accessible for borrowers with lesser deposits. Mortgages in Belgium operate in any of the following ways:
1. Mortgages with fixed rates
With a fixed-rate mortgage, you make the same payment each month for the life of the loan. This shields you from fluctuations in interest rates or the larger real estate market.
2. Mortgages with adjustable rates
Your monthly payment may differ since the cost of variable-rate mortgages fluctuates with the market. These transactions carry greater risk, but they may be less expensive for some borrowers.
3. Mortgages with combined rates
In exchange for meeting conditions, such as opening a bank account with the lender or purchasing mortgage insurance, combined rate arrangements offer lower rates than those on other mortgages.
Banks That Give Mortgage Loans Easily In Belgium
1. AXA Bank
The top insurance brand in the world is AXA Bank, a member of the AXA group. In Belgium, AXA Bank is significant in the financial sector and offers its clients financial protection.
Two honors were given to AXA Bank in 2017 and 2018. AXA Bank has 2.9 million customers in Belgium and is active in 64 other countries. AXA Bank was established in 1881 and offers retail banking services. AXA Bank and insurance collaborate to help the AXA brand succeed in the marketplace.
Also, in terms of mortgage loans, they are one of the best banks in Belgium that give mortgage loans easily.
2. Argenta Bank
It is a 1956-founded Belgian bank with 481 locations. It also operates in Luxembourg and the Netherlands, offering banking and insurance services in all three countries.
During the first quarter of 2018, the bank had a profit of 94 million euros, down from 109 million euros in the same quarter of 2017. Client money under administration increased by 3% to 45.3 billion euros.
Argenta has temporarily lowered the rates on both its renovation and ecological renovation loans to 2.50% and 1.50%, respectively. As the fourth-largest bank in Belgium, Aegenta Bank is also one of the best banks that give mortgage loans easily in Belgium.
3. BNP Paribas Fortis
BNP Paribas is the largest bank in Europe and one with operations in 73 nations. BNP Paribas Fortis is a subsidiary of the BNP Paribas group based in Belgium. BNP Paribas owns 9.375 billion euros ($9.375 billion) of the total share capital.
Customers can choose from a full range of financial products and services from the bank. It offers three essential services—banking services for individuals, businesses, institutions, and investments.
In the first half of 2018, BNP Bank in Belgium reported a profit of EUR 2588 Million, which is 1.50 percent more than in the same period in 2017. The bank also offers mortgage loans quickly.
4. Europa Bank
The International Bank of Washington, a U.S. holding company, formed Belgium’s banks in 1964. Consumer loans, mortgages, savings and deposit accounts, investments, etc., are the principal goods and services banks provide. They primarily serve the shipping and insurance sectors. The bank uses the standard banking approach, transforming retail deposits into loans for consumers and companies.
5. KBC Bank
The two banks (Credit Bank and CERA Bank) and the Belgian insurance firm (ABB Insurance) united to establish KBC in 1998. Its main business is the bank’s integrated bank insurance division, which serves 11 million customers. However, the KBC also offers mortgage loans to people.
In the fourth quarter of 2018, KBC Bank earned 621 million euros in profit; KBC Belgium contributed 361 million euros. According to the statement made by the CEO of KBC on February 14, 2019, this outcome was attained due to the more significant net interest revenue and stringent cost management.
There are 3.5 million customers served by KBC Belgium, which has 585 bank locations and 374 insurance firms.
6. Delen Private Bank
When it was first founded in 1936, it was run as an exchange office. Banking and insurance are the two primary services provided. The bank is now a component of the Finaxis holding group.
The bank specializes in providing stock brokerage and private wealth management services. Additionally, it gives some specialized asset management services, like discretionary management. The bank is a pioneer in estate planning, which includes asset planning and structural analysis.
7. ING Belgium Bank
ING Belgium Bank is a part of the ING Group and was founded in 1998 as an international bank under the name Bank Brussel Lambert. It provides individuals and businesses with various retail and commercial banking services.
Additionally, it offers a variety of loan options for houses, cars, and mortgages, offering the opportunity of either regular or lump-sum interest payments upon loan repayment.
Advantages of Banks That Offer Mortgage Loans Easily In Belgium
Mortgage borrowers in Belgium may benefit from banks’ easier mortgage loan availability in several ways. The following are some potential advantages:
- Accessibility: More people will be eligible for mortgage financing due to more accessible access to mortgage loans. First-time homebuyers and those with less-than-perfect credit records may find this especially helpful as they may have previously needed help getting a loan.
- Higher homeownership rates: When mortgage loans are more easily accessible, this can help to raise homeownership rates. In the long run, this promotes stability and security by enabling more people and families to realize their homeownership aspirations.
- Competitive interest rates: A more competitive market may result from banks trying to issue mortgage loans more quickly. This competition may result in cheaper interest rates and better lending terms for borrowers. It lets people contrast several lenders and select the best choice that satisfies their financial demands.
- Real estate market stimulation: By raising the demand for properties, more accessible access to mortgage loans can stimulate the real estate market. Existing homeowners may benefit from higher property prices brought on by this increased demand as their homes’ values may rise.
- Flexibility in loan alternatives: To accommodate a variety of borrower profiles, banks that make it easier to obtain mortgage loans may also provide a more excellent selection of loan possibilities. With this flexibility, consumers can choose a mortgage that fits their budget by choosing from a range of loan terms, down payment specifications, and repayment alternatives.
- Faster loan processing: The time between submitting a mortgage application and getting it approved can be shortened by simplifying the loan approval procedures. Thus, borrowers can obtain financing more quickly, allowing them to move forward with their plans to buy or refinance a property without experiencing significant delays.
Requirements For Mortgage Loans in Belgium
Generally speaking, all you really need is identification documentation (a passport that is still valid would do) and financial documentation. You can exhibit your job contract, customer bills, and similar documents.
Additionally, some banking institutions could require address documentation. If relevant, you only need to present your utility bills or leasing agreement. Keep in mind that being under 65 years old is the primary requirement imposed by lenders for receiving a mortgage. So there’s a good possibility you’ll receive that mortgage as long as you’re still young enough!
Frequently Asked Questions
A mortgage loan is what?
A mortgage loan is a loan given by banks or other financial organizations to people or businesses to buy or refinance real estate. The property is used as security for the loan, and the borrower pays consistent payments over a predetermined period.
How do I pick a Belgian bank for my mortgage?
Consider aspects including interest rates, loan terms, repayment alternatives, customer service, and any other fees or costs when choosing a bank for a home loan. It’s a good idea to compare offers from various banks to discover the one that best suits your requirements.
What prerequisites must you meet to apply for a mortgage loan in Belgium?
Banks may have different specific criteria, but generally speaking, you’ll need documents showing your name, income, bank account statements, employment history, and details about the property you want to buy. Banks might also evaluate your creditworthiness and loan repayment capacity.
How much can I borrow in Belgium for a mortgage loan?
Your salary, credit history, and the property’s value are just a few variables that affect how much you can borrow. Loan-to-value (LTV) ratios, which banks commonly use, specify the portion of a property’s value that they are willing to finance. A more excellent LTV ratio increases the amount you can borrow.
What are the mortgage loan interest rate alternatives in Belgium?
In Belgium, fixed and variable interest rate choices are typically available for mortgage loans. A fixed-rate ensures consistency in monthly payments because the interest rate is constant for the duration of the loan. Variable rates are subject to change depending on the state of the market, which can alter your monthly payments.
Are there any extra fees for mortgages in Belgium?
Yes, there are other expenses involved, including appraisal expenses, notary costs, mortgage registration expenses, and administrative expenditures. When determining whether a mortgage loan is ultimately affordable, it’s critical to consider these expenses in addition to the interest rate.
We have discussed the banks that provide mortgage loans efficiently in Belgium. Although historically, these banks may have made it relatively easy to get a mortgage loan, individual eligibility and loan terms may change depending on creditworthiness, stable income, and property value.
To choose the best alternative for your unique scenario, it is always advisable to investigate and evaluate various banks, their current services, and their criteria. Finding banks that are more receptive to your demands and navigating the mortgage market can both be made more accessible by seeking the advice of a financial counselor or mortgage broker.
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