Spaargids.beAre you choosing to pause your home loan payments because you are facing a more difficult financial time, and are you going to extend the term of the loan as a result? Don’t forget to take into account the effect on securing the outstanding balance. Spaargids.be Addresses points of interest.
By Johan Van Geyte, in association with Spaargids.be
High inflation and especially rising energy costs make many people gasp financially. This is why the government and banks have offered them the option since the beginning of October to pay interest on their home loan for only one year. After that, the credit period is simply extended by one year.
A Home Loan Payment Postponement can be requested by individuals who meet each of the following conditions:
• The home loan has been deducted for the main residence in Belgium. So there is no delay in obtaining a loan to buy a second home.
• At the time of submitting the application for a payment deferral, the applicant’s total transferred assets in checking and savings accounts and in an investment portfolio with his or her own bank or another bank are less than €10,000. Retirement savings are not included.
• On March 1, 2022, no home loan arrears were recorded in the Central Register of Individual Credit.
• The borrower has a payment plan in progress or required by its energy supplier.
Already 5,000 awards
In October, 4,239 families have already benefited from this system.
Those who do not meet the requirements for a payment deferral, but are still in financial trouble, can request a separate arrangement from their bank. In October this had already happened in 967 cases.
This means that the last month in total more than 5,000 payment deferrals awarded. Provisional figures show that the average exemption due to payment interruption for affected families amounts to approximately 460 euros per month.
Reading tip: Insurance companies also grant payment deferrals.
Consequences of death
However, extending the term of the loan also has consequences for securing the outstanding balance. After all, the already paid-up capital decreases more slowly. In addition, the loan extends over a longer period.
If the insured borrower dies before the end of their loan, the insurer will no longer pay the entire amount owed, but only the portion that was included in the original early payment plan. It will also stop covering it on the originally scheduled date. This means that the outstanding balance insurance is no longer valid during the additional year.
If you still want to be fully insured, you should contact your company. She can then provide you with a tailored proposal, for which you pay an additional amount. She may even order a medical examination if she deems it necessary.
The outstanding balance insurance that covers the entire loan is reassuring for you and your surviving relatives as well as for the bank. Your surviving relatives will no longer have to repay the loan in case of premature death and the bank guarantees repayment.
Read also on Spaargids.be:
This article was brought to you by our partner Spaargids.be.
Spaargids.be is an independent comparator of bank products and looks for competitive pricing and better interest rates.
Unlimited free access to Showbytes? Which can!
Log in or create an account and never miss a thing from the stars.
“Total coffee specialist. Hardcore reader. Incurable music scholar. Web guru. Freelance troublemaker. Problem solver. Travel trailblazer.”