Navigating the “family loan” for first-time homebuyers in Belgium

In today’s challenging real estate market, many young individuals dream of owning their first home but often face financial barriers. Banks might perceive their capital as insufficient, making the home-buying journey even more daunting. However, various solutions can assist these young buyers in bolstering their loan applications. One such innovative solution is the "family loan."

family loan

The Struggle of Young Households

An increasing number of young households find it challenging to navigate the process of acquiring their first property. For most first-time buyers, finding a house or even an apartment within their budget seems like an insurmountable task. Often, even couples with dual incomes find themselves reliant on external financial assistance to make a purchase. In such scenarios, parents typically come to the rescue.

Several strategies can be employed to assist these young buyers. Parents might consider:
– Making a financial donation, often viewed as an advance on inheritance.
– Gifting real estate assets, which might involve donation rights.
– Covering renovation costs.
– Acting as a guarantor for the loan.

For those lacking adequate personal funds, other options include total loans, mortgage assignments, investor groups, online co-investments, third-party assistance, and the pivotal "family loan," which we’ll delve into further.

A Timely Financial Boost

Since 2020, the National Bank of Belgium has mandated that banks should not grant a mortgage loan exceeding 90% of the property’s value. Additionally, incorporating notary fees into the loan has become increasingly challenging. Given these constraints, familial support becomes crucial for young individuals aiming to purchase their first home. However, not all assisting parents are willing or able to dip into their savings to help their children.

In such situations, considering a mortgage loan simulation can be beneficial. Introduced by several banking institutions since September 2020, this allows individuals to borrow, in the form of an installment loan, an amount ranging from 10,000 to 50,000 €, primarily to cover notary fees. This can be a significant relief for young buyers on a tight budget. Moreover, depending on the parents’ situation, they can also mortgage their property. Specifically, once the child’s property equity reaches 90% of the remaining balance value, the mortgage guarantee can be transferred to their property. However, it’s essential to note that this loan should not exceed 50% of the parents’ total loan debt ratio.

Benefits of the "Family loan"

The "family loan" offers a plethora of advantages:
– It provides a financial cushion for first-time buyers, enabling them to navigate the property market more confidently.
– Parents can support their children without depleting their savings.
– It fosters a sense of financial responsibility and planning among young buyers.
– The flexibility of the "family loan" ensures that the loan aligns with the buyer’s financial situation and the property’s value.


The Belgian real estate market, like many others globally, poses challenges for first-time buyers. However, with innovative solutions like the "family loan," young individuals can realize their dream of homeownership. By leveraging familial support and understanding the various financial tools at their disposal, the path to buying that dream home becomes clearer and more achievable.

If you’re intrigued by this innovative loan formula and wish to explore it further, consider reaching out to our partner,, for more insights and guidance.