Down payment

The down payment is the amount the buyer invests from their own funds in the property purchase, in addition to the mortgage. In Belgium, the NBB recommends a minimum contribution of 10% of the property price for own dwelling and 20% for investment. In practice, funds are also needed for ancillary costs (notary, registration rights, bank file), representing about 12 to 15% of the price in Wallonia and Brussels, and 5 to 8% in Flanders. A larger down payment allows for a better interest rate and reduces the loan-to-value ratio. Sources of equity can include savings, a family gift (mind donation rights), or a family loan.