Mortgage checklist: come prepared!

Do you need a loan to finance your property purchase? To give you the best chance, it’s important to make sure your application is in order. Here is a checklist of the main financial factors to consider and documents to get together.

Banking aspects

• • Borrowing capacity
  • Type of interest rate (variable, fixed or adjustable)
  • Term
  • Mortgage protection insurance
  • Fully comprehensive home insurance

Other financial aspects

• • Mortgage deposit
  • Guarantees
  • Monthly repayments according to your income

Other property purchase expenses

• • Application fees
  • Notary fees
  • Mortgage fees
  • Registration duty
  • Land tax
  • Local taxes
  • Co-ownership charges
  • (Agency fees)
  • Moving and furnishing
  • Any renovations

Tax deductions

• • Tax credit on notarial deeds
  • Housing or super-reduced value added tax
  • Deduction of debit interest
  • Mortgage protection insurance
  • Mortgage savings scheme
  • Other tax breaks

Government incentives

• • Interest relief
  • Interest rate subsidy
  • Renovation subsidy
  • Savings premium
  • Government guarantees
  • Home ownership incentive
  • Subsidy for adaptations to meet the special needs of people with disabilities
  • Subsidy for the creation of an annexe
  • Municipal aid
  • Other incentives

Subsidies for energy efficiency renovations

• • Government guarantee for a climate loan
  • Interest relief for a climate loan
  • Klimabonus subsidies
  • Financial assistance for LENOZ certification
  • Other subsidies in connection with energy savings and renewable energies

Documents generally required to obtain a mortgage

• • the preliminary sale agreement and the draft or final notarised deed
  • land registry extract
  • proof of funds
  • details of existing loans
  • most recent pay slips

Additional documents for construction/renovation

• • Planning permission
  • Building plans
  • Photos of the property (inside and outside) in the case of renovation
  • Plans, specifications and/or estimates for new buildings

Expert involvement

• • Bankers
  • Notary
  • Architects/contractors
  • Real estate agent
  • Energy adviser

For further information on the subject, check out our special feature on real estate on myLIFE. We hope you enjoy the read!