Mortgage loan

A mortgage loan is a long-term loan (typically 20 to 30 years) granted by a bank to finance the purchase of real estate. The property serves as collateral (mortgage). In Belgium, rates can be fixed, variable, or semi-variable. The loan-to-value ratio is typically maximum 90% for own dwelling and 80% for investment. Monthly payments include capital repayment and interest. Credit deed costs (registration, mortgage duty, notary fees, administrative costs) total approximately 2 to 2.5% of the borrowed amount.