The European Directive must be incorporated into Belgian legislation. What can we expect from the new legislation on mortgage credit? You can read it below. Official status for your credit intermediary in mortgage credit.
Since November 1, 2015, there is an official statute for your credit intermediary in mortgage credit. This is a guarantee for you that your credit broker has the necessary professional knowledge and experience. He is recognized by the FSMA, the financial sector regulator, and is controlled by the Ministry of Economic Affairs.
Now also for home loans an annual cost percentage or APR
There will be an annual cost percentage or APR for home loans. This is a percentage that expresses the total cost of your home loan. Just like with consumer credit such as car loans or other installment loans.
ESIS makes your home loan transparent
The ESIS is a standardized document that includes all the terms and conditions of your mortgage loan. It allows you to compare your home loan with others. Good Finance already applies this in a certain sense through its decision of principle agreement. Even before you have to pay any costs.
Please note, the European Directive states that this must be issued at the latest with the credit offer. The credit offer is an official commitment of the lender and allows him to charge costs . So pay attention! And possibly ask the ESIS from your banker earlier.
Tying prohibited, bundled sale allowed
Tying means that the individual products cannot exist separately. The bundled sale means the opposite. You can close the individual products separately. The conditional discount also falls under the bundled sale. The bank gives you a floor rate on the mortgage credit on the condition that you take out (more expensive) insurance.
Please note, a discount on your home loan often also includes conditions. So read the ” small print “.
Stricter creditworthiness check
A lender cannot just give you a home loan. You must have the necessary repayment capacity. Both the credit intermediary and the lender are responsible for this and will therefore ask you all the information they deem necessary to make a decision about your mortgage loan. You therefore have every interest in fully cooperating in this.
We closely follow the evolution of the new Belgian legislation on mortgage credit. As soon as there is something new to report, you can read it on this blog about the home loan of Good Finance!