In Belgium
A mortgage (hypotheque) is the legal mechanism by which a lender secures a property loan. By registering a mortgage on the property, the bank obtains the right to force a sale if the borrower fails to repay.
In Belgium, two main forms exist:
- Full mortgage inscription: registered by a notary at the mortgage registry. Most secure for the lender, but most expensive (approximately 1-2% of the loan amount in registration costs).
- Mortgage mandate: a power of attorney authorising the bank to take a mortgage if needed. Cheaper (approximately 0.5% of the loan), but less protection for the lender. Common for investment loans.
How it works
Registration. The notary registers the mortgage at the Conservation des Hypotheques. The inscription is valid for 30 years and covers the loan amount plus a surcharge (typically 10%) for costs and interest.
Costs. On a 200,000 EUR mortgage inscription: registration tax (1%) + notary fee + administrative costs = approximately 3,500 EUR.
Release. When the loan is fully repaid, the borrower can request a mortgage release (mainlevee). This requires a notarial deed and costs approximately 500-1,000 EUR. Alternatively, the inscription expires automatically after 30 years.
Practical example
Nathalie borrows 180,000 EUR to buy a rental apartment. She opts for a mortgage mandate (cost: 900 EUR) rather than a full inscription (cost: 3,200 EUR), saving 2,300 EUR upfront. Her monthly repayment over 25 years at 3.2% is 872 EUR.