Borrowing: types of loans, conditions and banks

Credit is the lever that lets you buy a property or a business far bigger than your savings. Used well, it speeds up the whole journey; chosen badly, it costs tens of thousands of euros or puts a project at risk. Here are the different types of loans in Belgium, their terms, their conditions and the banks that offer them.

The main families of credit

The mortgage in detail

Repayment structures

• Repayment loan with constant monthly payments: the most common form. Each payment covers interest and some capital; at the start, it is mostly interest.
• Repayment loan with constant capital: the same amount of capital is repaid each month, so payments are higher at first and then fall. The total cost is lower.
• Bullet loan (interest-only): you pay only interest and repay all the capital in one go at maturity. Lower monthly payments, higher total cost; you need a reliable source of repayment, often life insurance or savings built up alongside. It is mainly used by investors and for estate planning structures.
• Bridging loan: temporary credit, for up to about 24 months, financing your new home while you wait to sell the old one. You pay only interest.
• Progressive repayment: some banks offer payments that rise by about 2% a year, to track income growth.

Fixed or variable rate

With a fixed rate, the payment never changes: this is the choice of the vast majority of Belgian borrowers. According to Febelfin figures reported in October 2026, eight in ten borrowers chose a fixed rate or a variable rate with an initial fixed period of at least ten years, and only about 7% a purely variable rate.

A variable rate is revised at agreed intervals, based on a published reference index. The notation shows the frequency: 1/1/1 (yearly revision), 3/3/3 (every three years), 5/5/5, 10/5/5 (fixed for ten years, then revised every five), and so on. The law regulates these revisions: the rate can never more than double compared with the starting rate, and most formulas also cap the increase at each revision. Some banks also offer an ‘accordion’ option: the payment stays the same and the term lengthens or shortens when the rate changes.

How much will the bank lend?

Two figures decide your application:

• Loan-to-value (LTV): the amount borrowed divided by the property's value. Since 2020, the National Bank has expected banks to limit loans above 90% for an owner-occupied home (with a wider tolerance for first-time buyers) and above 80% for a buy-to-let investment. In practice, for a rental property you therefore often need to put down at least 20% of the price, plus purchase costs.
• Debt-service ratio: the share of your net income spent on repayments. There is no single legal ceiling, but many banks look closely at applications where loan payments exceed about a third of income, and the National Bank monitors those above 50% in particular.

Purchase costs (registration duties, notary, mortgage fees) are generally not financed: they must come from your savings. See the details in buy to let.

Costs beyond the rate

• The loan deed at the notary: mortgage registration duty of about 1% of the secured amount, a 0.3% mortgage fee, plus fees and costs. A mortgage mandate, for part of the amount, costs less than full registration.
• Insurance: fire insurance is required, mortgage life insurance almost always (see insurance and protection). Banks often offer rate discounts if you take their linked products: compare the total cost, not just the rate.
• Early repayment: the reinvestment fee is capped at three months' interest on the capital repaid.
• The APR (TAEG in French, JKP in Dutch) includes some of these costs: it is the figure to compare between two offers.

Term: 20, 25 or 30 years?

A longer term lowers the monthly payment but clearly increases the total interest cost. For your own home, a lower payment gives breathing space; for a rental investment, it improves monthly cash flow. In 2026, about six in ten borrowers choose 25 years according to Belfius, and some banks offer up to 30 years, particularly for very energy-efficient homes.

Public and social loans

• In Wallonia: the Accesspack from the Société wallonne du crédit social (SWCS) for modest incomes, and the Fonds du logement de Wallonie for large families. The ‘chèque habitat’ tax benefit no longer applies to loans taken out since 1 January 2025; it was replaced by registration duties reduced to 3% for an owner-occupied sole home.
• In Brussels: the Brussels-Capital Region Housing Fund offers fixed-rate loans, from 3.25% to 5% depending on income and household size according to the regional portal. Its loans, suspended since summer 2025 for lack of bank funding, were due to resume on 1 July 2026 according to the Housing Secretary of State: check the situation when you apply. Approved social credit companies also offer reduced-rate loans.
• In Flanders: the Vlaamse woonlening from the Vlaams Woningfonds, which can finance up to 100% of the price for households below an income ceiling.

Consumer credit

It is governed by the Code of Economic Law and the FPS Economy, which sets maximum rates (APR) and maximum terms depending on the amount.

Maximum rates in force since 1 December 2025 according to Test-Achats; indicative terms published by Febelfin. The rates actually offered are often much lower, especially for car or energy renovation loans.

• Right of withdrawal for 14 days after signing.
• Early repayment is possible at any time, with a limited fee (1% of the capital repaid, or 0.5% if less than a year remains).
• Central credit register: every loan is recorded at the National Bank, and so are payment arrears. A recorded default makes any future borrowing much harder.

Business loans

• Overdraft facility: a reserve on the company's account, for day-to-day cash flow.
• Investment loan: medium or long term, for equipment, works or a building, repaid over the asset's useful life.
• Straight loan: a short-term advance drawn in tranches from a credit line.
• Roll-over loan: a long-term loan whose rate is reset periodically based on Euribor.
• Leasing: the leasing company buys the asset, you rent it with an option to buy at the end.
• Microcredit: up to €25,000 from microStart for people without access to conventional bank credit.

For a business takeover, financing often combines an investment loan, a vendor loan and loans or guarantees from regional bodies: Wallonie Entreprendre, finance&invest.brussels or PMV in Flanders.

Banks and lenders in Belgium

The list below covers the main mortgage lenders active in Belgium, in no order of preference. Conditions change often and depend on your application: compare written offers.

The most costly mistakes

• Accepting your usual bank's first offer without comparing.
• Comparing rates without comparing the required insurance and linked products.
• Choosing a variable rate without being able to cope if it doubles.
• Financing an investment with consumer credit.
• Borrowing the maximum you can, with no margin for the unexpected and no emergency fund.

Where to find these services

• Wikifin (FSMA)Understanding mortgages and consumer credit (French and Dutch)
• FSMA, credit intermediariesCheck that a credit broker is registered
• FPS EconomyMaximum rates and consumer credit rules
• Société wallonne du crédit socialSocial mortgages in Wallonia (French)
• Brussels Housing FundSocial mortgages in Brussels (French and Dutch)
• Vlaams WoningfondsThe Vlaamse woonlening in Flanders (Dutch)
• microStartMicrocredit for entrepreneurs

Links provided for information, with no partnership. Always check a provider's terms and authorisation before committing.

This article is educational and is not personal investment, tax or legal advice. Figures change: check them with the sources cited or a licensed professional before deciding. Read the full disclaimer.