Financing your first home just got flexible
'Should we buy or rent?', ask Julie and Charel, a young couple in the process of making life's big decisions. Having recently completed their…
Saving is good, but saving together is even better! Sophie and Mark have both opened separate BHW housing savings schemes, which enable them to accumulate funds for their future construction project. Moreover, the funds in this scheme can also be used to acquire or renovate a home on the condition that it is the main residence.
Is it better to buy an existing house, renovate an old one or build a new house? Rather in a year or even later? OK Sophie and Marc, slow down with your questions! First of all, the BHW KomfortBausparen allows young working people to maintain a certain flexibility regarding their real estate project. In fact, this formula offers an interesting combination, namely a secure credit interest rate of 0,2% per year as well as the possibility to benefit from special conditions for a home loan!
In case a young couple decides to build a new house, they have quick access to their home loan and are free to determine both the borrowing rate (which remains unchanged throughout the duration of the contract) as well as the amount of the monthly repayments. This concept does not require a minimum saving amount!
BHW KomfortBausparen offers everyone who's under 25, a young person’s bonus of 0,6% on the contract value.
The BHW WohnBausparen Plus contract is destined for people who plan on constructing or buying a real estate object and need financing over 50.000 euros and above. It allows you to choose a borrowing rate (1,25% or 2,35%) as well as the monthly repayment amount. This concept offers a flexible financing rate, which adapts to any customer’s personal situation.
Since the start of the 2017 tax year, the government has introduced a new clause. Thus, if at the end of the contract, the funds in the scheme are not used towards the primary residence, a subsequent home savings scheme will not be tax deductible.
Since the tax reform of 2017, the deductions applicable in the framework of a home savings scheme vary according to the age of the taxable person. For example, in the case of a 4-person household (couple with 2 children), if one of the parents is between 18 and 40 years old on 1 January of the tax year, the deductible limit of 672 euros is doubled for all persons in the household. Thus, the deductible amount is 4 x 1.344 euros.