Thursday, 10 December, 2020

Housing loans increased

In Belgium, it was announced some time ago that the housing bonus will be reduced. The housing bonus was scaled back from 2,280 euros to 1,520 euros. Nevertheless, the amount borrowed was on the rise. Politicians see that as a signal that the real estate market will not be damaged by the reduction of the housing bonus, but I think that is no less true.

More home loans

More home loans

Despite the reduction of the tax benefit for the housing bonus, more than 40% credit applications would have been made in January 2019, of which at least 20% more housing loans. This is evident from the figures from the Bank.

Also, from August last year, a lot of refinancing was requested with a peak that occurs in the last quarter and would continue into 2019.

Another fact is that the amount of the loan increases considerably and this up to almost 38%. This is probably due to the low interest rates that you can get fixed at the moment. Attention! The social loan will fall to 2% from 1 March 2019. This is a fixed interest that can be adjusted. If you do not borrow the full amount and you opt for a variable loan, it is possible that you can get a mortgage loan from your own bank for less than 2%.

The real reason for these statistics?The real reason for these statistics?

Now that I have followed a course in real estate servant, the reason for increasing requests and purchases in residential properties in January 2019 seems to me to be somewhere else. This suspicion was confirmed yesterday by a woman who wanted to buy her own house at the end of 2014 and was finally unable to enjoy the full housing bonus of 2280 euros.

First and foremost, the applications to the notaries were not manageable. I myself sold a house in 2013. I have submitted the application to the notary on several occasions to have the notarial deed or the real deed of sale executed before the end of 2013. I even have all the mails in my ‘sent items’ and then we are not yet talking about the countless number of phone calls that have been made.

It was also no problem for the buyer to have the deed executed earlier. And yet it had not succeeded? The notaries were too busy and did not even agree on a date on which the deed could be signed. When we quietly started the Christmas period, both notaries seemed to be on vacation. And I’m talking about 2013 now! I had already forwarded this request at the end of September, so there was ample time to prepare that deed and to agree on a date. That joke cost us a total of 450 euros. So can you imagine that you want to buy or sell a house at the end of 2014? So quite a few people simply fell out because of the huge number of applications. These applications will then be approved in 2019 and will therefore end up in the wrong statistics.

Reduction of the Housing Bonus

Reduction of the Housing Bonus

Another reason is that many people have misinformed themselves. It is not because a commitment or a purchase-sale promise has been signed that the purchase has actually been realized.

And that is what many people thought. Sign the compromise briefly in November 2014 = enjoy the full housing bonus. That is therefore NOT the case. The sale is officially closed when the notarial deed is signed by all parties. You can imagine that there are still people who do not realize that they will not be able to enjoy all the benefits.

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