Home Loans
Prospectus
Prospectus for Mortgage Loans 120/0417
Conditions valid from April 1, 2017
These credits are subject to the Belgian
commercial code in Book VII,
Title 4, Chapter 2.
Table of contents
Introduction 5
Six key questions
6
1. What is a home loan?
2. What is a mortgage guarantee?
3. W
hy take out a home loan?
4. Why use a credit?
5. W
ho can take out a home loan?
6. How much can you borrow?
6
6
6
7
7
7
The home loan in detail
8
The Tariff List for Home Loans for private purposes
The different rate formulas
The determination of the interest rate
The lifetime
The various credits
When do you receive the amount borrowed?
Simplify your life with eHomeLoan
8
9
10
10
11
12
13
How do you buy your property?
14
Outright sale
Public auction
14
16
What additional costs will your project incur? 18
Costs associated with the purchase of a property
Costs associated with your home loan
18
19
Possible costs during the credit 20
Non-drawdown fee
Costs for the change of the contract
Costs for the early repayment of your home loan
Costs of mortgage transfer
Costs for the cancellation of the mortgage
Life insurance
Property insurance
20
20
20
20
20
21
21
Definitions 22
3
Introduction
Do you have plans to buy, build or renovate a house or an apartment? As a main residence or second
home? Such a nice project will of course be an important milestone in your life. Nagelmackers would
like to help and advise you on how to arrange everything as well as possible: we can put all our
experience in wealth creation, management and protection at your service. You can count on our staff
and their professionalism. They take the time to answer your questions, look into your personal
situation and goals and offer you the credit formula that suits you best.
In this prospectus you will find all the essential information on mortgage loans, also called home loans.
Your Nagelmackers adviser can suggest and propose a tailor-made solution.
5
Six key questions
1. What is a home loan?
3. Why take out a home loan?
A home loan is intended to finance the purchase,
construction or major renovation of the property,
primarily for private use.
A home loan is intended solely for the acquisition
or maintenance of property.
“Acquisition” or “maintenance” means
•the purchase, construction or major renovation/
conversion of a property;
•the payment of inheritance and gift taxes on a
property;
•the acquisition of the ownership share of a
property from a former partner (i.e. for support
payments);
•the refinance of an existing home loan with
another financial institution.
2. What is a mortgage
guarantee?
In most cases, a home loan is accompanied by a
mortgage guarantee. There are three types of
mortgage guarantees. In each of these cases, the
guarantee is granted by the owner of the property.
•The mortgage registration: the mortgage is
drawn up at the notary with a deed and
registered in the records of the office of conservation of mortgages. With this guarantee the
owner gives the bank the ability to sell the
mortgaged property if he, even after registered
reminders, fails to repay his loan. A mortgage
registration is always taken for 30 years.
•The mortgage mandate is also prepared at the
notary with an authentic deed. The owner gives
his unconditional approval for a mortgage on
the property as soon as the bank deems it
necessary.
•The mortgage promise is arranged through a
private contract. This guarantee therefore does
not require the intervention of a notary. The
owner promises to grant the bank a mortgage
whenever the bank requires it. A mortgage
promise is rarely used.
6
4. Why use a credit?
Home loans are always granted in the form of a
credit facility. This means that Nagelmackers
advances you a sum of money which depends on
how you acquired your property (outright sale,
instalment purchase, construction, public
auction ...).
The principal repayable may be re-debited (recovery
of outstanding amount) in order to finance a further
major renovation/conversion of the property that
was the subject of the home loan.
5. Who can take out a home
loan?
Any individual, irres pective of his social status
(employee, self-employed, professional etc.) can
take out a home loan from Nagelmackers if the
following conditions are met:
•having his habitual residence in Belgium at the
time the credit contract is concluded;
•he is acquiring or maintaining a property mainly
for private use;
•he has adequate repayment capacity.
For companies Nagelmackers has other forms of
bespoke credit, which are not described in this
prospectus. If you need more information about
this, do not hesitate to contact your Nagelmackers
adviser. He will be happy to help you.
6. How much can you borrow?
The amount you can borrow depends on your
repayment capacity, the equity you want to invest
and the value of the property.
Your adviser will work with you to analyse your
personal situation and your project. He will look at
your earned income, any interest or rental income
and your expenses, such as existing loans. That
way, he can best assess your repayment capacity
for your new project.
The minimum amount of a home loan at
Nagelmackers is € 10,000.
The terms of redemption, such as the maturity, the
interest rate, the amount of the monthly
repayment and other elements, are determined in
an agreement attached to the deed of the credit
facility.
7
The home loan in detail
The List of Home Loan rates
for private use
Together with this prospectus, you will also have received the List of Home Loan rates for private use.
This document contains important information.
1
2
Interest rates and fees for paid services valid as from 01.04.2017
Replace the List of Home Loan rates
for private use at 01.03.2017
Rate: CRED/043/0417 valid as from 01.04.2017
Prospectus : 120/0417 valid as from 01.04.2017
21% tax applicable on services subject to VAT
Initial reference index
03.2017
1.1. Fixed interest rates
10 year
3,89%
0,3185%
15 year
4,24%
0,3466%
20 year
4,39%
0,3587%
3/3/3 Cap +5/-5(2)
3,25%
0,2669%
-0,0439
5/5/5 Cap +5/-5(2)
3,42%
0,2806%
-0,0227
10/5/5 Cap +5/-5(2)
4,04%
0,3306%
-0,0227
20/5 Cap +5/-5
4,65%
0,3795%
-0,0227
3,69%
0,3024%
1.2. Variable interest rates(1)
(2)
1.3. Bridging loan(1)
3
Max. 1 year
2. Surcharges and discounts
3.3.1. Buildings
4.1.2. Fixed rate - Degressive monthly payment payments
Market Value
(MV)
Category 1
Category 2
Annual
real rate
Total
amount to
Market value
estimated
bybe
anredeemed
Family homes(4) Blocks of flats
(Capital +by
interest + handling
feesincl.)
+ notarial fees)
(VAT
with max.
appraiser approved
3 units(5)
Nagelmackers
privateeffective
sales, total rate)
APRfor
(annual
including
plus the cost
formonthly
work planned
First
payment
max. 150 m2
and/or necessary on the part of
Last
monthly
payment
meant for
the contractor
professional use
(VAT incl.)
4.1.3. Floating rate
(VAT incl.)
Annual real rate Five-year variation (5/5/5)
MV ≤ EUR 350,000
EUR 225
EUR 225
Total amount to be redeemed
EUR 350,000(Capital
< MV ≤+EUR
750,000
EUR
225
EUR 350
interest
+ handling
fees
+ notarial fees)
Category 3
4.39%
218,954.83 EUR
IBlocks of flats
with more than
3 units(5)
4.77%
and/or more 1,163.01 EUR
than 150 m2
627.24 EUR
meant for
professional use
(VAT incl.)
3.42%
EUR 350
210,463.10 EUR
EUR 450
(annual
rate)
3.75%
EUR 750,000APR
< MV
≤ EUR effective
1,000,000totalEUR
350
EUR 450
EUR 675
Monthly payment
859.74 EUR
EUR 1,000,000 < MV ≤ EUR 1,500,000 EUR 450
EUR 675
EUR 900
After 5 years, the rate can increase up to 6.84%. If the rate remains at this level, the total
EUR 1,500,000 < MV ≤ EUR 2,000,000 EUR 675
EUR 900
EUR 1,250
amount to be redeemed increases to 247,634.90 EUR, the APR becomes 5.50% and the
monthly payment increases
to 1,066.25 EUR.Offer
Offer
Offer
MV > EUR 2,000,000
(6)
or special building
4.2. Bridging loan
Second rank or lower
1.00%
0.0830%
Loans partially guaranteed by
a mortgage and/or mandate
0.50%
0.0416%
Share > 80%
of the market value
0.30%
0.0250%
Example for a loan of EUR 150,000 for 1 year, secured by a mortgage, whose principal is
3.3.2. Terrains
repayable at maturity and interest is payable by monthly payment.
- Booking fees: 500 EUR
Market Value (MV)
Category 1
Category 2
Category 3
- Notary’s fees: 3,625.50 EUR
Plot of land
Market value
estimated
by an
Plot of land
Plot of land
Annual
real rate
3,69%
for a Cat. 2
appraiser approved by
for a Cat. 1
for a Cat. 3
Total
be redeemed
building
Nagelmackers
foramount
privatetosales
building(7)
building(9) 159 568,94 EUR
(Capital + interest + handling fees + notarial fees)
(VAT incl.)
or a composite or
(VAT incl.)
APR (annual effective total rate)
6,67%
plot(8)
a plot for sale
(VAT incl.)
(VAT incl.)
Monthly payment
453,62 EUR
Special risks
0.50%
0.0416%
EUR 250,000 < MV ≤ EUR 350,000
EUR 225
EUR 350
EUR 450
EUR 350,000 < MV ≤ EUR 500,000
EUR 350
EUR 450
EUR 675
Household income is deposited 0.05%
to a Nagelmackers account
0.0042%
EUR 500,000 < MV ≤ EUR 750,000
EUR 450
EUR 675
EUR 900
EUR 750,000 < MV ≤ EUR 1,000,000
EUR 675
EUR 900
EUR 1,250
Outstanding balance insurance 0.10%
is taken out with Nagelmackers
0.0083%
MV > EUR 1,000,000
or special plots(10)
Offer
Offer
Offer
Fire insurance
0.15%
is taken out with Nagelmackers
0.0125%
If the appraisal is cancelled before the on-site visit: EUR 35 (VAT incl.). Once the visit is
made, all fees will be invoiced.
Rescheduling after the 2nd missed visit: EUR 50 (VAT incl.).
3. Fees
MV ≤ EUR 250,000
EUR
150the last monthly
EUR 225
The principal is redeemable
with
payment. EUR 350
3.1. Processing fees
Home loan/bridging loan
Processing fees (CVAT)
Home loan with or without mortgage
EUR 500
Home loan without mortgage
and with multiple advances
EUR 500
Home loan with mortgage
and with multiple advances
EUR 800
Bridging loan without mortgage
EUR 300
Bridging loan with mortgage
EUR 500
Not applicable for loans requested with the eHomeLoan online tool.
The CAP can never be higher than the applicable interest rate, after any reduction(s)
that you have obtained.
Not applicable in the context of a bridging loan.
With a space for professional use limited to max. 30 m2.
(5)
Examples of units include flats, studios, commercial ground floor units, etc.
(6)
Examples of special buildings include churches, chateaux, hospitals, etc. or blocks of
flats without long-term leases or surface rights, property leasing commitments, etc.
(7)
This includes a group of adjacent plots located in either an agricultural or a forested zone.
(8)
“Composite plot” is understood to mean:
- A plot for a family home along with land in an agricultural or forested zone OR
- An annexed plot of land located partly in an agricultural zone and partly in a forested zone.
(9)
Examples of this include building sites for blocks of flats, shops, SMEs, small businesses
or offices.
(10)
Plots of land used for public purposes, special buildings (see (6)) or plots without
long-term leases or surface rights, property leasing commitments, etc.
(1)
(2)
An amount of EUR 250 (VAT incl.) is payable if the borrower requests to make an adjustment
to the guarantees or the contract in progress (other than a change in the interest rate or its
variability, the capital repayment method or the loan term).
An amount of EUR 50 (VAT incl.) is payable in the event of exercise of an option provided
for in the contract.
For the delivery of a duplicate (contract, private deed, attestation ...), a cost of 41.33 EUR
+ VAT is charged.
(3)
(4)
Bank Nagelmackers nv - Sterrenkundelaan 23 - 1210 Brussels - T 02 229 76 00 - F 02 229 76 99 - www.nagelmackers.be - FSMA 025573 A - VAT BE 0404.140.107 - RPL Brussels
1 It contains the references of the prospectus and
the tariff list and the date from which the
conditions indicated apply.
2 The first column contains the different
maturities and interest rate formulas. The
second column contains our maximum annual
interest rates. These are purely for information
purposes. The calculations are based on the
monthly interest rates in the third column. The
fourth column contains the reference indices for
variable rate formulas.
3 T
his indicates the discounts and bonuses that
can be applied.
4 T
his indicates the other possible costs associated
with your loan application, such as filing fees,
expert fees and the drawdown fee.
8
228,095.90 EUR
Monthly rate
2.2. Maximum discounts(3)
5
APRthe
(annual
effective
rate)of a file, the person called upon to rule on the
4.73%
Depending on
assessment
of total
the risk
loan has theMonthly
right to require
paymentan expertise, regardless of the amount of the loan.
933.21 EUR
Effective annual rate
2.1. Maximum surcharges(3)
4
4. Representative examples
Monthly fee
4.1. Home loan
0.0830%
Examples of a home loan of EUR 150,000 over 20 years, secured by a mortgage and
repayable in monthly instalments.
3.3. Appraisal costs
- Processing fees: 500 EUR
fees: 3,625.50
EUR of the loan is less than or equal to EUR 200,000.
An expertise-willNotary’s
not be required
if the amount
- No valuation fees, no fire insurance or balance insurance
If the amount of the loan is between EUR 200,001 and EUR 300,000, an expertise is not
4.1.1. Fixed rate - Constant monthly instalments
required if the percentage is less than or equal to 80%. On the other hand, the expertise
will becomeAnnual
compulsory
if the proportion is greater than 80%.
real rate
4.39%
1.00%
Total amount to be redeemed
An expertise(Capital
is always
required
for all loan
+ interest
+ handling
feesamounts
+ notarialabove
fees) EUR 300,000.
1. Interest rates and reference indices
Effective
Monthly
annual rate rate
3.2. Non-automatic payment fee
Annual fee
Editor in charge: Bank Nagelmackers nv, Sterrenkundelaan 23, 1210 Brussels - FSMA 025573 A
List of Home Loan rates
for private use
Page
1/2
1 april 2017
5 As from 01.04.2017 - for loans subject to the
Belgian Economic Code in Book VII, Title 4,
Chapter 2 - the bank is required to inform any
future borrower of an annual percentage rate of
charge (APR) calculated taking into account of
all costs borne by the borrower to obtain the
credit on the terms set out in the offer.
In other words, all costs related to the credit
(processing fees, appraisal fees, notary fees, fire
insurance, outstanding balance insurance,
account maintenance fees) are now included in
the APR. And this is mentioned in the form
called European Standard Information Sheet
(ESIS) which is given to you when you apply for
a home loan.
The different rate formulas
Nagelmackers offers you a range of formulas with
fixed or variable interest rate.
Fixed rate formulas
If you opt for a fixed rate, you determine from the
start the final amount that you will pay off every
month for the entire term of your mortgage. This
protects you from any interest rate rises, but you
cannot take advantage of potential rate cuts.
Example: you borrow € 150,000 over 20 years at
an annual rate of 3.5% (monthly interest rate of
0.2871%). You pay for 240 months an amount of
€ 941.70.
Variable rate formulas
Nagelmackers gives you the choice between
interest rates with a three-year (3/3/3) or
five-year (5/5/5) revision, a first revision after 10
years and then every 5 years (10/5/5) or a one-off
revision after 20 years (20/5).
The law defines the various aspects of the
variable interest rate of a mortgage.
•The interest rate of your loan will be revised
according to the initial reference index (the index
applicable on the date of signature of your home
loan).
The initial reference index, indicated in your loan
proposal, is the reference index which is used for the
entire duration of your loan whenever the interest
rate is reviewed under the contract to determine a
new rate.
The value of the initial reference index is that of the
calendar month preceding the date of the Tariff List
for Home Loans for private purposes. The value of
the reference index at the time of the revision is that
of the month preceding the date of the revision. On
the tariff list these reference indices are indicated
next to the corresponding credit formula.
The initial reference index is compared with the
index applicable at the time of the revision of your
mortgage. If there is a positive or negative difference
between the two indices, the interest rate is changed
appropriately. The following formula is used:
New interest rate
= initial interest rate + (reference index at the
time of the change - initial reference index).
The reference indices applicable in the event of
interest rate revision are:
•Index C (OLO 3 years) for the interest rate with
three-yearly revision;
•Index E (OLO 5 years) for the interest rate with
five-yearly revision.
The reference index will be determined by Royal
Decree every month for each variable rate formula
and then published in the Official Gazette.
9
The increase or decrease in your interest is limited to
a specific percentage, called the CAP. This CAP is
determined at the time you conclude your home
loan.
At Nagelmackers we work with CAP5, which means
that the contractual interest rate can rise or fall by up
to 5%.
The CAP must never be higher than the subscribed
rate, after any discounts.
Example: you have a three-year adjustable rate of
3.50% per annum, which means that the CAP must
be a maximum of 3.5 and a minimum of -3.5.
Specifically your interest in the worst case cannot
exceed 7%.
Intermediate rates can also be used at the time of the
contractual revision, such as an increase or a
decrease of 2%.
Our variable rate formulas
• 3/3/3 = revision every three years.
Increase or decrease limited to 5%
compared with the rate of the first year.
•5/5/5 = revision every 5 years. Increase
or decrease limited to 5% compared with
the rate of the first year.
•10/5/5 = revision after an initial period
of 10 years, and then after the fifteenth
year. Increase or decrease limited to 5%
compared with the rate of the first year.
•20/5 = revision after a period of 20 years.
Increase or decrease limited to 5%
compared with the rate of the first year.
Any rate change will be communicated to you know
later than the date on which the new interest rate
becomes applicable. In addition you will also receive
an adjusted depreciation table.
•The calculations are based on the monthly rate, as
required by law. Interest rates are given on an
annual basis for information only.
10
Example: an annual interest rate of 6.09%
represents a monthly interest rate of 0.4939%.
The determination of the
interest rate
Possible increase(s) of interest
Depending on your equity for your project and
the risk taken by the bank in helping you to
finance your project, the interest rates on the
home loan may be higher. You will of course be
aware of this from the moment you apply for a
credit simulation.
Possible reduction(s) of interest
Depending on the bank account that you want to
hold with us, we can provide additional interest
rate reductions.
The conditions for the granting of these discounts
are indicated in your credit agreement.
These discounts remain in effect for the entire
duration of the credit, provided you fulfil your
commitments. If this is no longer the case, the
discount granted will be cancelled and the
interest rate of your mortgage revised
accordingly. You will also receive a new
redemption table with the new rates applicable.
The lifetime
The term of your home loan depends on the
monthly payment formula that you choose. That
period can vary from 1 to 25 years (see Tariff List
for Home Loans for private purposes). The capital
is only tax deductible if the term is at least 10 years
and the loan is secured by a mortgage. That is one
of the conditions for the tax deductibility of the
capital and interest on home loans.
The various credits
pay more than with redemption in constant
monthly payments, but the redemption amount
becomes smaller each month. Because the capital
is redeemed faster that way, over the full term of
the home loan you pay less interest than on a loan
with constant monthly payments.
For the redemption of your home loan, fully
tailored to your projects and your financial
situation, you can choose between different
repayment terms.
In addition to the traditional forms of credit with
capital repayments, you can also opt for a loan
with fixed term.
Example: home loan with capital repayments
amounting to € 150,000 over 20 years, with a
monthly interest rate of 0.3755% (= 4.60%
annualised).
Classic credits with capital redemption
Redemption through constant monthly
payments.
If you choose a home loan with constant monthly
payments, then each month you redeem the same
amount, which consists of a (declining) interest
portion and a (growing) capital portion. The
relationship between the interest and the capital
portion changes in line with your credit requirement.
Example: home loan with constant monthly
payments for an amount of € 150,000 over 20 years,
with a monthly interest rate of 0.3755% (= 4.60%
annualised).
Interests
Interests
Capital
1
€ 1,188.25
€ 563.25
€ 625.00
2
€ 1,185.90
€ 560.90
€ 625.00
3
€ 1,183.56
€ 558.56
€ 625.00
€ 627.35
€ 2.35
€ 625.00
240
▼
Interests
Interest
Capital
Capital
▼
Monthly
instalment
Monthly
instalment
1
€ 949.46
€ 563.25
€ 386.21
2
€ 949.46
€ 561.80
€ 387.66
3
€ 949.46
€ 560.34
€ 389.12
240
€ 949.46
€ 3.55
€ 945.91
▼
Credit with fixed term and without capital
redemption over the life of the credit
With this formula you only redeem each month
the interest on the loan amount. At the end of the
loan you redeem the capital at once with your own
resources.
We draw a distinction between a bridging loan and
home loan with fixed term.
Capital
▼
Interests
Redemption by decreasing monthly payments
With this formula you redeem a portion of the
loan capital each month. The redeemable interest
is calculated on the amount still to be redeemed
and thus decreasing. So with this formula you only
Bridging loan
Do you want to build or buy a new home, but are
waiting for the full or partial funding from the
sale of another property you own? Then you can
cover the period with a bridge loan between the
purchase of the new property and the receipt of
the proceeds from selling your first property.
11
The bridge loan has a maximum term of one year
and may be renewed on request for an additional
period of 12 months. As long as the loan is
outstanding, you only pay monthly interest. Once
your property is sold, you redeem the borrowed
capital of the bridging loan in one go.
Example: you want a bridging loan of € 150,000
over one year, with a monthly interest rate of
0.2774% (= 3.38% annualised). You pay € 416
interest every month. When the deed of sale of
your property is drawn up, you redeem the
capital of € 150,000.
Home loan with fixed term, also called
bullet loan
A bullet loan is a loan in which the loan capital is
redeemed at one time on the maturity of the
contract. During the term of the loan, you only pay
monthly interest.
Which formula best meets your needs?
That depends on a variety of factors. What
amount would you like to redeem each
month? How will interest rates change?
What tax advantages will you have? Do not
hesitate to put these questions to your
Nagelmackers adviser. In consultation with
you, he will look for the credit formula that
best suits your situation.
When do you receive the
amount borrowed?
Purchase of a property
When you buy land, a new home that has already
been built or an older home, you will receive the
amount at once, at the time the deed is drawn up
at the notary.
Construction or renovation of a property
If you want to build or renovate a house,
Nagelmackers will put the loan amount at your
disposal whenever you request a withdrawal.
This may take place in up to eight steps, the
so-called tranches. The tranches are drawdown
as work proceeds and on the basis of a
pre-established payment plan.
For renovations or construction requiring a building permit, the amounts are paid only on presentation of the building permit.
You only pay interest on the capital actually
drawn. On the capital not drawn you pay a provision fee of 0.0830% per month (1% per year).
This fee is calculated monthly on the undrawn
portion of the capital.
All tranches must be drawn within a period of
18 months.
Example: capital borrowed: € 50,000 over
20 years, with monthly interest of 0.4034%
(= 4.95% annualised).
Capital drawn
•On the signature of the deed: € 5,000
•After 3 months: € 25,000
•After 12 months: € 20,000
12
You pay
•The first three months of 20.17 euros per
month interest (0.4034% at € 5,000) and a
provision fee of € 37.32 (0.0830% on € 45,000).
•The next nine months: € 121.02 per month
interest (0.4034% on € 30,000) and a provision
fee of € 16.60 (0.0830% on € 20,000).
•From the 13th month: interest on the full
amount of capital amortisation; no further
provision fee is payable.
Simplify your life
with eHomeLoan
If you want to borrow between € 60,000 and
€ 300,000 to finance the purchase of a house, an
apartment or an investment property in Belgium,
you can now request a loan from the comfort of
your home, whenever you want. Our eHomeLoan
tool allows you to carry out a simulation or an
application for a home loan online. eHomeLoan
offers fixed rates for terms ranging from 10 to
20 years, and the home loans must be secured
by a mortgage registration of 100% . The
rates are largely the same as those offered
in the agency, and can be consulted on our
List of Home Loan rates for private use.
13
How do you buy your property?
There are several ways to buy a property.
More information can be found in particular
at www.notaris.be, the website of the Royal
Federation of Belgian Notaries.
Outright sale
Purchase and sale promise
If you are interested in a property that is for sale,
you can start by submitting a purchase promise. In
it you mention the price you are willing to pay for
the property if the seller accepts the proposal.
This document is a unilateral promise which is
binding only for you, throughout the duration of
your offer. It is therefore important also to
precisely define the duration of the sale offer. The
seller, however, is not bound: he is free to accept
the proposal or reject it.
You can include in the sale promise one or more
suspensive clauses that impose certain conditions.
Your offer is only valid if the condition(s) is/are
met. A usual suspensive clause is not mandatory
but is recommended, namely the condition
precedent of obtaining a credit. This clause
stipulates that your commitment is only final when
you receive your loan. If the credit application is
rejected, the sale cannot go through and the
promise is no longer valid, even if it was already
signed by the seller.
It is also possible for the seller to make a unilateral
promise, a promise of sale. With it the seller
promises to sell his property to you at a specific
price. For the duration of the promise of sale the
vendor is bound and may no longer sell the
property to another interested party. However, you
are not required to buy the property before you
sign the promise of sale.
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Once the seller accepts your purchase promise or
you accept the promise of sale of the seller, the
sale is final (unless the sale is subject to certain
conditions precedent that have yet to be met). So
do not hesitate to consult a specialist.
Sales contract through the notary
After the sale promise there is usually, but not
necessarily, a signed sales contract, with an
authentic deed drawn up by the notary.
If it is possible to sign a contract immediately, we
strongly advise against doing this without a notary
having read the document and approved it first.
Once the sales contract is signed, the sale is a fact.
The seller and you cannot go back and you are
bound, even if the sale has yet to be established
and the deed is only signed a few months later,
subject to certain conditions precedent.
The notary will check a number of things:
•The buyer: he is the sole owner? Is he an adult?
Is he not bankrupt?
•The property: a correct and complete description
of the property you want to buy; the best thing is
a description of the property title literally taken
over from the seller (condition, surface area, any
easements ...).
•The indication of the price, the exact price, the
payment method, the amount of the deposit,
cash or deferred payment of the balance ...
•Any suspensive conditions and conditions
precedent, such as that for the grant of a
mortgage.
There are also a number of other entries, which
your notary will discuss with you. That is why it
is so important to conclude your sales contract
before the notary.
At the moment the contract is signed before a
notary, you must pay a deposit, usually 5 to 10%
of the purchase price, depending on what you
and the seller have agreed. That amount can be
paid through a bank draft or wire transfer.
Payment in cash is prohibited. The amount will
be kept in a separate account with the notary
until the date of the authentic deed.
If you sign the sales contract at the notary, you
will also receive a life insurance policy for up to a
maximum of € 250,000. This insurance applies
only if the sales contract is signed in the office of
the notary and you have paid an advance of at
least 5% of the purchase price. As an additional
safeguard, the agreement should bear the seal of
the notary, which he must date himself. In
addition, the agreement should include a clause
which draws the attention of the buyer to the
existence of this insurance. The guarantee covers
only the period of 4 months after the signature of
the sales contract. For more information about
this insurance, please contact your notary.
Period between the agreement and the
authentic deed
Once you and the seller have signed the sale
agreement, you can agree on a date for the
drafting of the authentic deed. There is no
statutory deadline as between the agreement and
the authentic deed (the deed before a notary), so
you can in principle choose that date for
yourselves. However, you must take the fiscal
period into account.
The Code of Registration Fees stipulates that the
sale must be drawn up within 4 months after the
date of signature.
•Either the notarial deed is drawn up within that
period. In this case, the deed is both an authentic
deed (required by law) and a sale agreement. The
notary takes care of the registration.
•Or the deed is for some reason not drawn up
within that period (which is also not required by
law). In that case, the deed is drawn up later, but
both you and the seller have the contract
(different from the notarial deed) registered
yourselves and pay the fee, within that period of
four months.
It is therefore advisable to establish a deadline of four
months between the signature of the agreement and
the drafting of the deed.
You can choose a shorter period, but do not forget to
take into account the time needed for the notary to
perform certain administrative inquiries, the deadline
imposed by particular financial institutions for granting
loans ...
As a precaution, it is a good idea to choose a maximum
period of four months and only proceed to the drafting
of the deed when all searches are completed and you
are also financially ready. Choosing a shorter deadline
is itself a risk: if you cannot comply with this deadline
for some reason, you may have to pay interest on late
payments (subject to the provisions of the agreement).
Authentic deed
Whether you have made a sale promise that was
accepted, or have yourself signed a promise of sale
and if you then have or have not proceeded to the
signature of a contract, you must sign a deed
before a notary. That makes the sale effectively
opposable to all parties.
On the day of the signature of the deed, the notary
reads you the deed and gives you all the necessary
explanations. You pay the purchase price as well
as the notarial fees, in principle through certified
drafts or cheques issued by your bank, or bank
transfer. The seller(s) and you then sign the
document in multiple copies. One is for you.
At that time, congratulations are in order: you
have become the owner of a property!
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Public auction
A public auction is called a sale by auction. There
may be 1 or 2 session days. Those who have an
interest in the property which is for sale make
successive bids, and the person with the highest
bid becomes the buyer of the property. Between
the first and second session day a higher bid can
be made. A public auction must be conducted by a
notary, who announces the session day with
posters and newspaper advertisements.
A property purchased at a public auction gain
pretty fast, because often the deed is already
signed within the calendar month (costs payable
within 5 working days, the balance of the purchase
price on the signature of the deed). For that
reason, the law prescribes this procedure for some
judicial sales. However, the procedure can also be
used for a voluntary sale.
The notary draws up a deed with the description
of the property and any sale conditions. This
document, the specification, can be consulted by
all prospective buyers in the office of the notary.
The offers are made during the sales session and
sometimes start with a set price. If the last offer is
accepted, the notary assigns the sale. The buyer
then has a fixed period to pay the price and costs.
Some sales are only completed after a period of
two weeks in which any interested person can still
make a higher bid.
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What additional costs will your
project incur?
Besides the price of the purchase or construction/
renovation, you should also take into account
various other costs. Below is a summary of the
most important of them.
Costs associated with the
purchase of a property
Outright sale
If you are buying a property more than 2 years old,
you will have to pay stamp duty: the (mandatory)
registration fees.
You pay the following fees:
•registration fees, for the price given in the
authentic deed;
•costs of the registration certificate;
•various fees and charges of the notary.
Sales subject to VAT
For a new building instead of VAT you pay
registration fees, which may be higher. It is
important to keep this fact in mind when you
determine your budget.
Since January 1, 2011, there is a new system for
this: with a joint sale both the land and the new
building are subject to 21% tax.
The VAT system applies to built buildings,
buildings under construction and new buildings.
•For properties still to be built the buyer pays the VAT
to the supplier in line with the progress of the work.
•The same applies to buildings under construction or
newly constructed buildings not older than 2 years.
A new building should however be sold on 31
December of the second year following the year of
the first occupancy or first use of the property. In the
event of resale of a new property, the private seller
may request the application of VAT.
The registration fees depend on the
conditions). In some cases, the tax base
Walloon Region
region where the purchased property is
is reduced by € 12,500 or the
In the Walloon Region the registration
located and on your personal situation
registration fees are deductible.
fees amount to 12.5% of the price of
the authentic deed or 15% if it is your
(first property, dependent children,
rateable …).
Brussels Capital Region
third property. On certain conditions
Your notary will help you determine
In the Brussels Capital Region the
you pay 6%.
the exact amount.
registration fees are 12.5%. Under
certain conditions the charge can
Your notary can calculate the
Flemish region
be reduced on an optional basis by
percentage you must pay, depending
In the Flemish Region the registration
€ 175,000.
on your situation and the rateable
fees are 10% (or 5% on certain
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value of the property you want to buy.
Costs associated with your
home loan
Costs of the deed for your mortgage
The deed for your mortgage will also involve costs.
They will depend on the guarantee selected
(mortgage or mortgage mandate) and include:
•registration fee (1% of the mortgage registration
+ additional costs, such as a flat rate for the
lending agency to cover the costs it must
advance to recover the loan amount in the event
of default);
•drawdown charges;
•costs for the registration of the mortgage in the
records of the office of conservation of
mortgages (0.30%),
•fees for the notary,
•miscellaneous costs,
•21% tax on fees for the notary and miscellaneous costs.
Appraisal costs
The costs of the expertise are indicated in the List
of Home Loan rates for private use, and are
payable to the expertise office at the request of the
latter, even if the loan is not granted thereafter.
Processing fees
The processing fees are indicated in the List of
Home Loan rates for private use.
These costs do not apply if you request a credit
acquisition under an existing credit facility with
Nagelmackers.
For a precise estimate of these costs, ask your
notary or website www.notaris.be.
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Possible costs during the credit
Non-drawdown fee
Cost of a mortgage transfer
This fee is calculated on the capital amount not
drawn down of the credit granted to you for the
construction or major renovation/conversion of
your property. This non-drawdown fee is
mentioned in the List of Home Loan rates for
private use.
If you want to transfer your mortgage registration
to a new property, so that you pay less legal fees,
you must pay certain other costs. Your notary can
calculate them for you.
Costs for the change of the
contract
If you wish to change the terms of your current
loan, you will be charged fees. These can be found
in the List of Home Loan rates for private use.
Costs for the early repayment
of your home loan
If you want to redeem your home loan early in full
or in part, Nagelmackers will charge so-called
re-investment compensation. This fee is equivalent
to three months interest calculated on the early
repayment of capital.
There is no fee payable if the prepayment is due to
the death of the borrower and the outstanding
balance of the loan is redeemed.
For the early repayment of a bridge loan, no early
redemption fee is charged.
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Costs for the cancellation of the
mortgage
Irrespective of the term of your home loan, a
mortgage is always taken out for 30 years. Thus
for example you can, once your capital is partially
or fully redeemed, apply for a new credit without
going to the notary again, but instead signing a
private agreement with your bank.
If you do not want the bank still to have a
mortgage on your property after the redemption
of your loan, you must obtain a waiver from your
notary. There are costs involved in this. We
recommend that you consult your notary for a
precise assessment of those costs.
Life insurance
For death coverages associated with a home loan
we make a distinction between:
•the outstanding balance: for a classic home loan;
•temporary insurance with fixed capital: for a
home loan with a fixed term.
Loan balance insurance
A life insurance policy protects your family if the
purchaser(s) die(s) before the loan is redeemed.
The insurance company redeems the amount due
to Nagelmackers fully or partially, depending on
the coverage you have chosen.
Example: you and your spouse are each covered
for 75%. If one of the two dies, the survivor will
pay 25% of the monthly repayment. The
remaining 75% is paid by the life insurance.
Term insurance with fixed capital
You can also opt for term insurance with fixed
capital. This means that you ensure a fixed capital
amount for the term of the contract. The sum
insured in this way does not decrease as you
redeem the capital of your loan.
This insurance formula is suitable for fixed
term loans.
For debt balance insurance policies taken
out by persons with an increased health
risk, there is a solidarity mechanism
between the insurer and lender for
additional premiums higher than 125% of
the basic premium but lower than the
ceiling of 800% of the premium.
The life insurance policy of Nagelmackers has a
good price-quality ratio.
You decide whether you pay a single premium or
make regular payments. As long as you are bound
by a payment order, you will remain covered
during the whole term of the loan, irrespective of
the frequency of payments.
The life insurance also takes into account various
tax formulas: bone home, long-term housing
savings, pension savings. Your Nagelmackers
adviser will help you choose the right formula to
optimise your tax situation.
Property insurance
In the context of your mortgage Nagelmackers can
ask you to insure your property against fire and
other risks (water and storm damage, broken
windows ...).
You can always contact your adviser for a
simulation based on your personal situation.
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Definitions
Source: www.notaris.be
Notarial deed
The law requires the intervention of a public
official, the notary, to make the sale “opposable”.
The sale must be the subject of a notarial deed,
which has the status of an agreement order.
Before the deed is drafted, the notary must
perform a number of administrative searches. He
then draws up the deed. On the day of signature
the notary will read the deed to the parties,
explain the content and sign the deed with the
parties. Then he ensures compliance with the new
administrative formalities for the conveyance of
the property title to the buyer.
The different steps of the deed of sale are thus:
•previous searches;
•the drafting of the document and the analysis of
its content;
•the signature of the deed;
•the formalities after the signature.
Suspensive conditions and conditions precedent in
a sale
•The suspensive condition: the sale contract does
not exist as long as the condition is not met. The
very existence of the sale depends on a future
and uncertain event.
•The condition precedent: there is a preliminary
sale agreement, but if the condition is fulfilled,
the sale may be rescinded.
In the first case there is therefore no sale, in the
second the sale is already a fact.
Fees for the notary
The fee is the remuneration received by the
notary. This fee is determined by Royal Decree and
is the same for all notaries.
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Rateable
A notional amount deemed to correspond to the
annual rental income of a property.
Easement
An easement is a charge imposed on a property. It
is not incumbent on the owners but on the
property to which it applies, irrespective of the
person who owns it. For example, a right-of-way
gives the right to pass along a field to reach
another area.
Adjustment
An amount in cash to be paid by the person
receiving a plot with a higher value in a
distribution than the portion allocated to him. On
an exchange of property an adjustment can also be
paid.
Hidden defects
If after the acquisition of property you discover a
hidden defect (which you had been unable to
determine during an inspection with the normal
diligence of a prudent man), you can be
reimbursed through the courts if you demonstrate
the damage, acts quickly and prove the bad faith
of the seller (in this case the fact that the seller
should have known of the existence of the defect).
If a hidden defect or serious defect (which affects
the soundness and stability of the building) is
detected, the architects and the contractors are
bound by a special obligation to repair it.
E-BRO-120/04.2017 - Editor in charge: Bank Nagelmackers nv, Sterrenkundelaan 23, 1210 Brussels - FSMA 025573 A
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