Down payment

The down payment is the amount the buyer finances with their own funds, alongside the mortgage. Belgian banks follow the National Bank's expectations, which limit loans above 90% of the property's value for one's own home and above 80% for a buy-to-let investment. In practice, buyers therefore often need at least 10% of the price (20% for an investment), plus costs. These costs depend heavily on the region and the situation: for a sole own home, the registration duty is 2% in Flanders and 3% in Wallonia, while in Brussels the 12.5% rate applies above an abatement of EUR 200,000. Notary costs and mortgage deed costs come on top. A larger down payment lowers the LTV and often gets a better rate. It can come from savings, a family gift (mind gift tax) or a family loan.