Coronavirus: request the deferral of your mortgage loan

He plans a postponement, until the end of 2020 and free of charge, the repayment of a mortgage loan for individuals and a credit payment deferral for businesses. Banks will not charge any application fees or administrative costs for using a payment deferral.

An agreement has been reached between the financial sector and the federal government to deal with the economic consequences of the coronavirus crisis.

Who can legitimately request such a postponement for a mortgage loan?

A mortgage loan payment deferral can be requested by individuals who meet each of the following 4 conditions:

1. The coronavirus crisis has led to the reduction or disappearance of income due to temporary or complete unemployment, illness following Covid-19, closure of businesses, or transitional measures. For couples, it is sufficient that the income of one of the partners has decreased or disappeared due to the coronavirus crisis.

2. As of February 1, 2020, there was no late repayment of the mortgage loan for which a deferral is requested.

3. The mortgage loan was contracted for the sole dwelling and the main residence in Belgium of the borrower(s) at the time of the deferral request. In other words, investors cannot benefit from this deferral for a second home or a rental property.

4. At the time of the payment deferral request, the total movable assets in current and savings accounts and in an investment portfolio with the own bank or another bank is less than 25,000 euros. Pension savings are not taken into account in this calculation.

People who meet these four conditions can request a payment deferral.

How and when to request the postponement of your mortgage loan?

The postponement of the repayment of credit cannot exceed a period of 6 months.

To request this deferral, the general rule is to contact the agency where the loan was taken out, either by telephone, by e-mail, or via the banking application. It is best to contact the bank a week before the due date of the following month.

• For borrowers whose net monthly household income is less than or equal to 1,700 euros: the borrower can defer the payment of his mortgage loan without additional interest during the deferral period. Once this period has elapsed, payments will resume with the same monthly installments as before.

• For all other borrowers: the borrower can postpone the payment of his mortgage loan. When the deferral period is over, payments will resume with adjusted monthly installments since the deferred interest will be accounted for.

What form should the justification of financial hardship take?

The bank will ask for documentary evidence in order to be able to follow up on the request. This may be, for example, a certificate of unemployment or a sworn statement indicating that income has fallen sharply.

As far as Belfius is concerned, the bank indicates that when a customer contacts the branch, the latter will have a form to fill out at his disposal. “It was designed so that the procedures can be carried out remotely in order to guarantee the safety of customers and our employees”, replies Olivier Onclin.

In terms of supporting documents“we will be quite broad considering that there is no standard document or standard way of proving the financial difficulties suffered. In other words, any documentation that may indicate loss of employment or income will be considered to initiate the deferral process“.

For its part, Banque CPH speaks of a standard document to be completed by providing the precise reason for the request: “economic/technical unemployment following the Covid-19 crisis, closure of the company following Covid-19, etc. .”, according to the explanations of Florent Lahy, his spokesperson.

Does this deferral concern interest and/or capital?

A deferral of payment of a mortgage loan in the context of the coronavirus crisis means that the borrower does not have to repay his loan (capital and interest) until, at most, the end of 2020. Once the deferral period has elapsed, the payments will resume. The duration of the credit will be extended to the maximum of the deferred payment period granted.

Does it also concern lessors and/or owners of a second residence?

BNPPF delays direct debits

BNP Paribas Fortis customers noticed this month that their bank had not yet withdrawn the monthly installment of their mortgage loan. Don’t be surprised, it was the bank that decided to delay direct debits on April 1 in order to give all borrowers the opportunity to request a repayment deferral. This “temporary freeze” concerns all loans, regardless of the borrower’s profile. The bank will take the monthly payments next week, she warns.

Lessors or owners of a second residence cannot claim this deferral since they do not meet one of the necessary conditions, namely requiring that the mortgage loan has been contracted for the sole dwelling and the main residence in Belgium of the borrower(s) at the time of the deferral request.

What about my outstanding balance insurance or mortgage loan?

This Thursday, March 26, 2020, Assuralia, the Professional Union of Insurance Companies, announced strong exceptional measures, in particular with regard to vulnerable people. One of these measures plans to extend the benefit of deferral of mortgage loan repayment to “outstanding balance” insurance linked to a mortgage loan. “This measure is specific to insurance”, specifies Assuralia in a press release. These policyholders will benefit from the same deferral, until the same date, for the premiums for their outstanding balance insurance covering the mortgage loan.

What about my fire insurance?

Insured persons on temporary unemployment will benefit from a deferral of premium payments from March 30 to September 30 according to Assuralia.

A mortgage payment deferral in the context of the coronavirus crisis means that the borrower must not repay his credit (capital and interest) for a maximum of 6 months. Once the deferral period has elapsed, payments will resume. The duration of the credit will be extended to the maximum of the deferred payment period granted. In other words, the borrower will finish repaying his maximum credit 6 months later than initially planned.