Every month, for the duration of your mortgage loan, you repay the borrowed capital plus interest.
- The repayment of capital . Your monthly payment covers part of the capital you have borrowed (except for bridging loans or fixed-term loans).
- The payment of interest . The rest of your monthly payment concerns the interest linked to your mortgage loan. The share that this interest represents depends on the type of rate ( fixed or variable rate ), the amount of the rate, and the type of mortgage loan you have chosen.
The amortization table of your credit provides you with all the details on this subject.
What are the other costs to pay, in addition to your monthly payments?
In addition to your monthly loan payments, you will also need to cover other recurring costs:
- Your home insurance premiums . The amount of these premiums depends in particular on the value of your home.
- Your outstanding balance insurance premiums . As long as the insurance is not paid in one go, at the start of the credit. The amount of these premiums depends in particular on your “risk of premature death” (your age, your state of health), the duration of the credit and the amount of the credit.
- The property tax . In other words the tax on your property. The withholding tax is calculated on the basis of the cadastral income of your property.
To find out more about the property tax, consult the Belgian Federal Portal, under the heading “Accommodation”.