How long does the payment delay last?
A postponement of mortgage credit in the context of the corona crisis means that you, as the borrower, up to six months not have to pay off your credit – both capital and interest. After that period of deferment you have to resume the payments.
The term of the credit will be extended by the term of the payment extension at most: you will therefore repay your credit for a maximum of six months longer than originally planned.
WHO CAN GET PAYMENT DELAY?
According to Johan Thijs, chairman of the banking federation Febelfin, 55 percent of people with a home loan may be eligible. “It is an important measure for the banks, the impact of which is written in three figures, followed by millions,” says Thijs. The figure for the banking sector is therefore between 100 million and 999 million impact. The banks have to record that as a loss.
An extension of the mortgage loan can be requested by individuals that meet each of the following four conditions:
1. Income has fallen or is falling away as a result of temporary or full unemployment due to the corona crisis, illness due to Covid-19, closure of a case or bridging measures. For couples it is sufficient that the income of one of the partners falls or disappears due to the corona crisis.
2. There was no payment arrears on 1 February 2020 on the mortgage loan for which you are requesting an extension.
3. The mortgage loan has been taken out for you only home and primary residence in Belgium (when the application for a deferment of payment is made). So you may only own one home.
4. At the time of the application, the total movable assets in current and savings accounts and in an investment portfolio with your own or another bank less than 25,000 euros. Pension savings are not included in that amount.
HOW MUCH IS THAT GOING TO COST?
The banks do not charge any file or administrative costs for withdrawing the payment deferral. A distinction is made based on the net monthly income:
Borrowers from whom it net monthly income of the family is less than or equal to 1,700 euros may defer payment of their mortgage credit without additional interest during the deferral period. Once the period is over, payments will therefore resume at the same monthly charge as before. In other words, the bank assumes the interest on the payment deferral.
Not so for all other borrowers with a family income above 1,700 euros net per month: when the deferral period has passed, the payments resume at an adjusted monthly charge because the deferred interest is settled.
WHAT DO THE BANKS MEAN BY “NET FAMILY MONTHLY INCOME”?
In front of salaried employees: the monthly income in February 2020, including recurring income such as maintenance and rental income, excluding child allowance, and after deducting the charges for consumer credit and the mortgage loan of the primary residence.
In front of self-employed: The monthly income for the corona crisis (to be calculated as follows: 2019 income divided by 12 months), including recurring income such as alimony and rental income, excluding child allowance, and after deducting the charges for consumer credit, the mortgage loan of the principal residence and corporate loans on own name.
WHEN CAN YOU REQUEST DELAY?
For applications that until April 30, 2020 , a maximum of six months can be deferred, ie until October 31, 2020 at the latest. For applications after April 30, 2020 the end date remains October 31, 2020. The payment delay can only be obtained for future monthly payments, Febelfin emphasizes, so not retroactively.
And what about applications that were previously submitted? These will be evaluated by the bank according to the criteria of the charter. If necessary, the bank will contact the borrower.
HOW DOES IT WORK PRACTICALLY?
If you think you meet the conditions to apply for a postponement of payment, you must contact your bank yourself. This is only possible by appointment or via the available digital channels (e-mail, chat, mobile app, …) and by telephone. It is best to contact your bank a week before the due date of the next month.
The bank will be single evidence request in order to start the application. This could, for example, be a certificate of (temporary) unemployment or a statement of honor that income has fallen sharply.
More info on www.febelfin.be