Do you intend to buy a house, an apartment, a plot of land or to build your own home? If so, you need a sound financial partner to finance your project. ING Luxembourg is there to help you to draw up a personal financing plan and to provide the funds you need.
What is a home loan?
A home loan is long-term loan that is repayable in monthly instalments.
- It is the ideal financing method to:
- purchase a plot of land;
- buy a house or apartment;
- build or make major renovations to a home.
The amount of the credit granted will depend:
- on the amount you can allocate to the monthly repayments;
- on the quality of the asset to be financed, which is used as collateral;
- on your personal contribution.
Your financial resources must be sufficient to allow you to make your monthly payments, while ensuring a normal standard of living.
The repayments are monthly and begin the month after drawing down the home loan in full.
These monthly payments depend on things like the interest rate, the term and the amount of credit granted.
The interest rate on your home loan can be variable, reviewable fixed or fixed.
The maximum term for home loans is 30 years, in general the loan should preferably be repaid before retirement age. Depending on the type of interest rate you choose, different maximum terms may apply.
Any private individual, acting for private purposes and with sufficient stable income to be able to repay the loan without difficulty.
The usual guarantees are:
- First mortgage the real estate you would like to buy or build (the primary mortgage);
- debt balance insurance to cover the outstanding borrowing in case of the death of the insured;
- fire insurance for the property subject to the mortgage.
You can submit your application via any ING branch. Before visiting us you can always do an online simulation to get a first idea about your loan.
When visiting us about a loan, we advise you to have the following documents to hand:
- documents relating to income: pay slips, salary, pension, etc.;
- ownership document, purchase agreement, sale agreement (depending on the case);
- plans, specifications and the estimated conversion or construction cost;
- if applicable, a copy of statements from other banks (proof of own funds, other income or existing loans);
- photo of the item to be financed,
- identity card(s) of applicant(s);
- any other document you consider useful in processing your application.
Often you hear people say: “Anyway, until I have paid off my home loan it’s the bank who owns my house”. But is it true?
It is always the same question that every one of us is asking before signing a home loan with his bank. To gain a more objective overview, let’s analyse them one by one with their respective advantages and disadvantages.
The rate remains fixed for a pre-defined period and, at the end of the period, is subject to a revision. The pre-defined period can vary from one bank to another but is generally 3, 5 or 10 years.