The essential conditions to know for a loan from the bank

Today to start the realization of a personal project, for a real estate purchase or to face financial contingencies, the use of bank credit is an effective solution. However, be aware that it is not always easy to get a loan from the bank. Indeed, today, banking establishments are more and more demanding. So, to help you better prepare your loan, let’s see in this article the different conditions for borrowing from the bank.

Present a considerable personal contribution

Present a considerable personal contribution

Most banking institutions require a personal contribution from the borrower among the conditions for obtaining a loan. Most often, this contribution is essential especially in the context of mortgage. Generally, it should represent between 15 to 20% of the sum borrowed. However, not all banks always require the presentation of a personal contribution. For example, on the fast online credit list in Belgium you can find loans without down payment.

Have fixed and regular income

Have fixed and regular income

Among the bank’s first concerns, the financial situation is a priority. To assess this situation, it will then take into account your income. Your borrowing profile will be convincing if you have fixed and regular income. Also, the bank will take into account your different expenses and your repayment capacity. In fact, if you have too many monthly expenses, your remaining living will be low and you will no longer be able to easily repay your loan.

Be professionally stable

Be professionally stable

Also, professional stability is also considered by the bank to grant a loan. Indeed, an open-ended contract will be more reassuring for the bank compared to a fixed-term contract or an interim contract. In fact, many banks will refuse to grant credit to an employee on a fixed-term contract. Except in the case where you plan to borrow as a couple and your spouse presents a reassuring contract for the bank such as the official contract established.

Have a low debt ratio

Have a low debt ratio

The debt ratio is a condition for granting credit. However, there is no specific maximum prescribed by law. Thus, it will be up to the credit organization to specify the debt ratio acceptable to the borrower. Most often, the bank will also calculate your debt capacity based on your other credits. So, to be sure to get your loan easily, it is better to end your previous credits or consider making a loan repurchase.

Be young and healthy

Be young and healthy

Theoretically, the health of the borrower is not really a condition for obtaining the bank loan. However, a young and healthy borrower is most likely to get credit because they have the capacity to repay. Also, this is the reason why borrower insurance is required by the bank. It is a guarantee of repayment even in the face of possible unforeseen events such as dismissal, illness resulting in incapacity or also the death of the borrower.

Works loan: renovation credit to renovate your house

The work loan is a personal loan that is perfectly suited to the renovation and transformation of your home.

There are 2 types of credit allowing you to carry out your work:

  • Either, you finance your work through a mortgage loan while knowing that this type of credit generates a multitude of costs, a certain length to obtain the decision and the provision of funds (a notarial act is required)
  • Either you contract your works loan via an installment loan at preferential rate. Being much faster, the decision is obtained during the day and we only need quotes to carry out this one. The funds are generally made available within 24 hours of signing your credit contract and the entire amount is paid into your bank account.

How to apply for a work loan?

How to apply for a work loan?

We strongly recommend that you take out your credit in the form of an installment loan for real estate. Not only do you get a quick response, usually within an hour, but the funds are immediately available to you once your credit is signed.

To submit your work loan request, you just need to:

  • apply for a loan online
  • Gather the necessary quotes
  • Prepare a front / back copy of your identity card
  • Prepare the last original salary slips received (those for the 3 months preceding the request)
  • Prepare the last 3 bank statements proving the income found on the original salary slip
  • Prepare the last warning extract from the roll received from the property tax (the cadastre)

You must not send us any documents after submitting your request. If there is agreement, we will ask for them during our meeting.

How much can I borrow without owning?

How much can I borrow without owning?

Unfortunately, you cannot borrow for a work loan if you do not own your home. If you nevertheless wish to carry out some renovation work on the property you are renting, you can always take out a personal loan.

However, before carrying out the work and even before starting any procedure, you are advised to send an authorization request to your owner by registered letter. Without the agreement of the latter, you are formally advised against starting work because the owner may require, at the end of your lease, that everything be returned to the state in which you have rented the property.

Ready work does not rhyme with personal work

Ready work does not rhyme with personal work

If you want to carry out your renovation work without going through a contractor, it is possible but not via a renovation credit. In this case, you must go through the personal loan. You can carry out a simulation on this page: personal loan simulation.

Renovation loan: representative example

Renovation loan: representative example

Below, you will find a concrete example of the renovation credit that we offer. If you wish to carry out personalized simulations, we refer you to our simulator dedicated to the renovation loan, click on the following link: simulation ready works.

  • Type of credit : installment loan
  • Duration : 84 months
  • APR : 2.85%
  • Monthly payment: 420.14 dollars
  • FIXED debtor rate: 2.85%
  • Amount: 32,000 dollars
  • Total cost: 35,291.78 dollars

Find a bank that offers a loan despite parental leave

If a salary is lost during parental leave, it is often more difficult to obtain a loan. The parent who applies for parental leave only receives 67 percent of the previous net income for a period of 12 months. In addition, due to the newborn child, of course, expenditure increases accordingly.

Of course, it can also happen during this time that a loan is required despite parental leave due to an urgent purchase or an additional payment for the additional costs. In this case, it is important to carefully examine the available loan offers to find a bank that offers a loan despite parental leave.

Why banks often refuse a loan despite parental leave

Why banks often refuse a loan despite parental leave

Since parental allowance is limited in time, many banks do not count this as actual income. This is especially true if the term of the loan is longer than the promise of parental benefit. Since the mother applies for parental allowance in most cases, many credit institutions fear that she will not return to her previous job after the twelve months. This would drastically reduce the income available to the family after parental leave, which means a significantly higher risk for the bank.

Who gets a loan despite parental leave?

Who gets a loan despite parental leave?

In the event that the term ends within the time limit for the parental allowance, the bank will in any case also recognize it as income. If the amount of the parental allowance is sufficient, the bank will usually also approve the requested loan. Of course, there is also the option of including the spouse as a second borrower in the loan agreement. Its income is then also taken into account. Single parents, on the other hand, find it much more difficult to get a loan despite parental leave.

In order for the loan to be approved, the payment of the parental allowance must be proven in any case by submitting appropriate bank statements. Evidence must also be provided of the period for which the parental allowance was approved. If the recipient of parental benefit then resumes his previous work, an additional certificate from the employer stating that the employment relationship has continued after the parental benefit ends.e now

Renovation work loan: all you need to know

Every owner must from time to time do work in his home. Subscribe a work loan can be a good solution to help you finance these renovations. This article explains the essentials to know on the subject.

What loan for renovation work?

What loan for renovation work?

There are several ways to finance work.

There are two types of credits:

  • Mortgage credit : relatively long to obtain, it will require your patience and will incur a certain number of costs before releasing the funds. For example, a notarial act is required. It is generally used to buy housing rather than a simple renovation
  • The work loan : more suitable for the work of the house, the “work loan” or “renovation credit” can be obtained within 24 hours. You will be asked for a simple proof (quote) for its installation. Funds are released very quickly (24 hours after signing the credit contract)

A work credit can be set up as part of a future resale of a property, an extension of your accommodation or as part of a loan for energy renovation works. Think about it!

Conditions for acquiring a loan for renovation work

Conditions for acquiring a loan for renovation work

Acquiring a work loan requires you to own the property to be renovated. However, if you wish to plan work (or an extension) as a tenant, this is possible by means of a personal loan.

Please always obtain written authorization from the owner of the premises by means of a registered letter. This written confirmation is very important because it protects you. In the absence of this, the owner can end your rental contract and ask you to return the accommodation as it is (before work).

The work loan requires you to go through a building professional. If you feel like a do-it-yourselfer and looking to acquire equipment to do the work yourself in your home, then you will have to go through a personal loan.

What documents must be provided for a work loan?

What documents must be provided for a work loan?

Building a file for the request for a renovation credit will require the following supporting documents:

  • The identity card (s) of the borrower (s)
  • The bank card where the funds will be paid
  • Detailed quotes for planned work
  • The last 3 pay slips for employees
  • The last warning extract from the tax roll received for the self-employed
  • The last bank statement received for the following income: unemployment benefits, work accident pension, mutual fund income,…
  • The warning extracted from the roll received from the property tax ( source )

Amount and duration of credit

Amount and duration of credit

It is imperative to have the amounts validated by your institution before starting work. You must bring the invoices or quotes issued by the contractor (or the architect) in order to agree on a loan amount.

Each bank has its prerogatives regarding the amount of the renovation credit and the repayment period (ranging from 6 to 120 months).

Do not hesitate to consult our work ready simulator to make a request quickly.

Types of work for my renovation

Types of work for my renovation

Whether it is minor work such as renovating your toilet, changing a bathtub or a more substantial development such as adding living rooms, work loan is undoubtedly the best way to borrow money. money in Belgium.