Mortgage Credit for Young People

Taking out a mortgage is an important step in many people's lives, and for young people, there are specific advantages they can benefit from when purchasing a home. In this article, we explain the different options available for young people looking to obtain a mortgage and how to make the most of your loan.

Benefits of a Mortgage for Young People

A mortgage often comes with various costs, such as registration fees, which can vary depending on the region. In some cases, these costs can even be reduced, especially for young people buying a home for the first time.

• Wallonia and Brussels: In Wallonia and Brussels, young buyers can benefit from tax advantages and discounts. For example, registration fees in Wallonia are 12.5% of the property's value, but for first-time buyers, a discount of €20,000 applies. In Brussels, the tax advantage can reach up to €175,000 for properties valued at up to €500,000.
• Flanders: In Flanders, registration fees are typically 10%, but for a first-time purchase since January 1, 2022, the discount can be up to 3%. Prior to this date, the discount was 6%.

In addition to these costs, other expenses are associated with obtaining a mortgage, such as notary fees and administrative costs. It is essential to factor all of these into your financial planning.

Mortgage Options for Young People

Young people in Belgium can take advantage of social loans, which are specifically designed for first-time homebuyers. These loans offer low-interest rates and favorable terms, making it easier to purchase a home.

• In Wallonia: The "Accesspack" is available for young people under 35 years old, allowing them to purchase a home with a maximum value of €260,000. The interest rate varies between 0.9% and 2.1%, depending on the applicant's situation.
• In Flanders: The interest rate for a first home purchase ranges from 1.6% to 2%, which is lower than standard mortgage rates.
• In Brussels: Young buyers can obtain a mortgage with an interest rate ranging from 1.7% to 2.5%, depending on the value of the property, which must be between €384,000 and €577,000.

These favorable rates are a significant advantage for young buyers, enabling them to fully finance their home. In some cases, it is even possible to secure a loan of 120% of the property's value, including notary fees.

How to Obtain a Mortgage as a Young Buyer?

To obtain a mortgage as a young person, there are several factors to consider:

• Down Payment: Thanks to an exception from the National Bank, up to 35% of first-time buyers can obtain a mortgage without having to provide a down payment of at least 10% of the property's value. This can greatly simplify the process.
• Preparing Your Application: A well-prepared application is crucial to increasing your chances of approval. Ensure you have a stable income, good management of your bank accounts, and possibly a down payment. This will demonstrate your repayment capacity and make it easier for the bank to approve your application.
• Choose an Affordable Property: By selecting homes in regions where discounts or special financing options are available, you can lower your costs.

Advantages of Being Young When Taking Out a Mortgage

Because a mortgage is a long-term financial commitment, being young can even be an advantage when applying for a loan. Banks and insurance companies often offer lower interest rates to young people, as they expect them to repay the loan over a longer period.

Depending on the region, the terms and interest rates may vary, but in general, young people tend to benefit from more favorable rates than older borrowers. This makes it easier for young people to purchase a home and keep their monthly payments low.

Conclusion: How to Increase Your Chances of Getting a Favorable Mortgage?

A mortgage for young people offers attractive benefits, such as lower interest rates and tax advantages. By taking advantage of social loans, providing a down payment, and presenting a well-prepared application, you can increase your chances of approval. Make sure you are well-informed about the specific conditions in your region and take advantage of discounts and subsidies available for first-time buyers.

With the right preparation and knowledge, young people can more easily finance their dream home with favorable conditions and low monthly payments.