Mortgage repayment holiday

Frequently asked questions

Mortgage repayment holiday

Frequently asked questions

Federal Minister of Finance Alexander De Croo, the National Bank of Belgium, Febelfin (Belgium’s financial industry regulator) and insurance association Assuralia recently announced financial support measures for individuals suffering financial difficulties due to the coronavirus outbreak.

Read on to get answers to frequently questions about the mortgage repayment holiday scheme.

How do I know if I’m eligible for a mortgage repayment holiday?

To be eligible, you have to meet all of these criteria:

  1. You or – where relevant – your partner have lost some or all of your income due to the coronavirus crisis
  2. On 1 February 2020, you were not in arrears on the mortgage loan you are requesting a repayment holiday for
  3. Your mortgage loan was taken out for your only home which is your main residence in Belgium (at the time you applied for a repayment holiday)
  4. Your savings buffer is less than 25 000 euros at the time you applied for a repayment holiday (by buffer we mean all liquid assets on your current and savings accounts and in your investment portfolio with your own bank or any other bank or lender, but not the money you may have in a pension savings scheme)

For how long can I get a repayment holiday?

  • If you apply on or before 30 April 2020, you can take a repayment holiday of up to 6 months – until 31 October 2020 at the latest
  • If you apply after 30 April 2020, you’ll also be able to get a break from your mortgage repayments until 31 October 2020 – but not for the maximum term
  • Repayment holidays don’t work retroactively, so they’re only available for future monthly repayments

Will I incur any charges if I ask for a repayment holiday?

No, we won’t charge handling or administration fees.
The mortgage repayment holiday only applies to those who can show that they’re experiencing financial difficulties as a result of the coronavirus crisis (see ‘How do I know if I’m eligible for a mortgage repayment holiday?’).

Will I still have to pay interest if I ask for a repayment holiday?

You won’t have to pay off your loan (principal and interest) for up to six months. The interest you’d normally pay during your repayment holiday will be charged afterwards.

We particularly want to support those hit hardest by the coronavirus crisis. If you have less than 1 700 euros net left over every month, you can take a repayment holiday without having to pay interest on the postponed payments. We’ll cover that for you.

What is meant by monthly net household income?

 

  • Wage earners
    This means your net monthly income in February 2020, including recurring income like alimony but not child benefit. The charges for your consumer loans and the mortgage loan taken out for your main residence will be deducted.
  • Self-employed
    This means your monthly income before the coronavirus crisis (your 2019 income divided by 12), including recurring income like alimony but not child benefit. The charges for your consumer loans, the mortgage loan taken out for your main residence and business loans in your name will be deducted.

Does a repayment holiday affect the rest of my loan?

It could affect it in two ways:

  1. The term of your loan will be extended by the number of months your repayment holiday lasts.
  2. You won’t have to pay off your loan (principal and interest) for up to six months. The interest you’d normally pay during your repayment holiday will be charged afterwards.
    We particularly want to support those hit hardest by the coronavirus crisis. If you have less than 1 700 euros net left over every month, you can take a repayment holiday without having to pay interest on the postponed payments. We’ll cover that for you.

Who should I apply to and how?

Contact KBC Brussels Live or make an appointment with your branch. Our experts will be happy to help.

How long will it take to find out whether I can take a repayment holiday?

We’ll let you know as soon as possible, but it may take a few days as we’re expecting a lot of applications.

Can I also get a premium payment holiday for my mortgage protection insurance and home insurance?

Premium payments for mortgage protection insurance and home insurance you have with us can also be deferred.

Can I take a repayment holiday if I own two homes?

No, the repayment holiday only applies to those who own just one home.

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