Financing a new-build property purchase in Belgium

New-build purchase financing belgium combines several specific levers: the classic mortgage credit, but also a fund-call schedule dictated by the Breyne Law, regional grants tied to the EPC, and tax treatment varying with the applicable VAT. For a first-time buyer or investor, properly structuring this arrangement upstream is decisive for the project’s viability: a shaky file may block notarial signing or penalise rental return for 25 years. This page reviews the parameters of new-build mortgage credit, the common loan-to-value ratio thresholds in 2026, and the regional new-build grants to mobilise depending on your region.

Mortgage credit: loan-to-value, rate and duration in 2026

The loan-to-value (LTV) (loan-to-property-value ratio) is the central parameter. Belgian banks accept in 2026:

• 80% with no particular justification — “comfort” LTV.
• 90% with a solid file (stable income, reasonable charges, demonstrated savings capacity).
• 100% or even 105% (fees included) for certain premium profiles or via an expert broker, but with a rate premium of 0.3 to 0.8 point.

The National Bank of Belgium (NBB) regularly issues prudential recommendations: since 2020, it has invited banks to limit loans > 90% LTV and to moderate effort rates (monthly payments < 40% of net income). These recommendations are not binding but strongly influence lending policy.

The 2026 rates range between 3.4% and 4.4% depending on duration (15, 20, 25, 30 years) and fixity (fixed rate, semi-fixed 10/5, annual variable +/- 1%). For reference, a loan of 250,000 € over 25 years at 3.8% fixed gives a monthly payment of approximately 1,295 € excluding outstanding-balance insurance. The outstanding-balance insurance (OBI) adds 8 to 25 €/month depending on age and health.

Schedule of fund calls under the Breyne Law

This is the major specificity of new-build purchase financing belgium: you do not pay for the property in one go, but in instalments staggered according to progress (article 10 Breyne Law). Typical pattern:

1. 5% at the signing of the preliminary contract or notarial deed.
2. 35-40% at watertightness (roof installed).
3. 30-35% at airtightness (external joinery installed).
4. 15-20% at finishing (sanitary, electrical, screed).
5. 5% remaining at the provisional reception (article 12 security deposit — see Breyne Law security deposit).

The bank releases funds by instalments upon presentation of fund calls signed by the architect attesting to actual progress. This mechanism protects the buyer: you only pay for what is built. But it presupposes immediate availability of the instalments when the developer requests them — hence the need for an already approved and unlocked credit.

During the construction phase, you only pay the bank interim interest (on the released capital), not the principal. Full repayment starts at provisional reception. See also new-build purchase steps for the global sequence.

Personal contribution and costs to anticipate

Even with a 100% credit, you must have a personal contribution to cover:

• Notary fees (3 to 4% of the price in off-plan sale, generally VAT + reduced rights).
• Mortgage deed fees (1.3 to 1.5% of the amount borrowed).
• Non-recoverable VAT on options and addenda.
• Furniture, non-included equipment (premium kitchen, terrace, garden).
• Safety margin (6 months of payments in reserve).

In practice, expect a minimum contribution of 15 to 25% of the total price for a calm file. Below this threshold, the bridge loan (while waiting for the sale of a current property) is an option to explore, with a rate premium of 0.5 to 1% over the duration of the bridge.

Regional grants and tax benefits

Three regions, three regimes. In Wallonia, the housing premium can reach 10,000 € for modest incomes as main residence, and the Walloon energy grants supplement for high EPC scores (heat pump, dual-flow ventilation, photovoltaic). In the Brussels Region, the abatement on registration fees can reach 40,000 € under conditions (main residence, price < threshold). In Flanders, registration fees at 3% for sole main residence under conditions.

On the tax side, new-builds potentially benefit from VAT 6% (instead of 21%) for main residence and habitable surface < 200 m² — see VAT 6% conditions and tax benefits. On a 350,000 € excl. VAT project, the saving reaches 52,500 €, more than the typical personal contribution.

Pitfalls to avoid in the financial arrangement

• Underestimating banking delays: count 6 to 8 weeks between application and firm approval. Anticipate the signing of the preliminary contract accordingly.
• Forgetting interim interest: it can represent 4,000 to 8,000 € over 12-18 months of works.
• Confusing recoverable and non-recoverable VAT: only VAT-liable investors recover VAT. For main residence, it is integrated into the price excl. VAT + 6% or 21%.
• Neglecting OBI: for a couple aged 40, 250,000 € over 25 years, count 4,000 to 8,000 € in total depending on health.
• Signing without a mortgage reservation: give yourself the time to finalise the banking agreement before firm compromise.

What to check before commitment

The financial arrangement of a new-build purchase requires fine coordination between notary, banker, broker and developer. A scheduling or pricing error can block the signing at the worst moment. The Mon Etat Des Lieux firm offers Breyne Law support including verification of the fund-call schedule, conformity of the preliminary contract and coherence of the financing plan. Request a free quote within 24 hours. For specific tax matters, see also tax benefits and for the completion guarantee Breyne Law explanation.