The own contribution to the purchase of a house, apartment, land or renovation is steadily increasing. On average, this own contribution amounts to approximately 27 percent of the purchase price; 73% is therefore borrowed, according to figures from market leader BNP Paribas Fortis. That is an increase of 3 percentage points compared to 2020, while real estate prices have risen sharply again.
For borrowers under the age of 30, the ratio, the ratio between the amount of your mortgage loan and the value of your home, is 82 percent, so they pay an average of 18 percent out of their own pocket. “That ratio is the lowest figure we’ve ever seen at our bank,” said Tim Spellemans, responsible for mortgage loans.
The National Bank had called on Belgian banks to be more careful when granting home loans. It imposed a ‘loan to value’ threshold of a maximum of 90 percent for an owner-occupied home and 80 percent for a home intended for rental, with limited options for deviating from this.
Generation Y
This threshold does not stop young buyers, according to the annual figures of BNP Paribas Fortis. A quarter of all loans from the market leader went to young people buying their first home; they were a third more than in 2020. At that time, there was still a negative effect of the housing bonus, which was abolished at the end of 2019. “If we add the segment of 30 to 35 year olds, four out of ten credits have been awarded to this Generation Y,” it said on Thursday.
The average age for purchasing a home is 39 years.
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