You benefit from modest incomes and you have difficulties to obtain a traditional mortgage loan. Don’t panic, the “housing for all” social mortgage loan is made for you. Our lawyer explains the advantages of such a loan.
The social mortgage loan is a loan granted by the Good Lenders Credit to finance the construction or purchase of a first home in the Walloon Region, intended for the personal occupation of borrowers.
Conditions for granting
As with any loan application, the lender will conduct a thorough credit check based on the information gathered in the credit application form. You will therefore have to show white legs, in particular by declining your identity (major) and by producing proof of your net monthly income.
If necessary, the lender will consult the Cream Bank for Individuals. The monthly repayment of the mortgage loan may not be greater than one third of the monthly net income of the borrowers.
Your annual income cannot exceed $ 53,000. It will also be necessary to excuse the title deed or the compromise of sale of your accommodation. The market value of the accommodation must be less than $ 204,000. An expert will be appointed for this purpose, if necessary.
The regulations apply to all buildings for residential use. The area of premises for professional use may therefore not exceed 20% of the living area.
The duration of the credit ranges from 10 to 30 years, the mortgage credit having to be fully repaid at the age of 70. The applicable interest rate will be that corresponding to the scale of the corresponding income category. Rate reductions are possible in areas known as real estate pressure, housing to be revitalized or for the purchase of social housing.
Once the file is complete, it receives a registration number. The credit agreement must be signed within 100 days of the date of registration.
Mortgage loans are repayable in constant monthly installments. An act of assignment of debt must be made in favor of the lender.
The borrower will be required to insure the accommodation against fire and to take out outstanding balance insurance.
If the purpose of the loan is to finance renovation or other work, it must be carried out within two years of signing the contract.
If you wish to resell your accommodation, you will have to fully repay the amount of the credit. A re-employment allowance of 3 months of interest will be due on the capital repaid early.
All requests must be made to a social credit desk at the Good Lenders Credit.
The administrative costs are around 25 $. You must also count an amount of 260 $ for the expertise of the accommodation. These amounts will not be reimbursed to you if the loan request is refused.
In addition, a solidarity contribution for the benefit of the Walloon Region of 0.20% of the loan amount is to be expected. Any modification of the current loan also results in a payment of $ 150.
If the Good Lenders Credit refuses the loan requested, you have 30 days to exercise in writing a right of appeal to the Chairman of the Good Lenders Credit Board of Directors.