Are you exploring a holiday paradise outside Belgium? Do you have questions about the financial picture: whether you can borrow money in Belgium for a foreign holiday stay?

In this blog, we look at the possibilities together and read why group insurance can play a role in this story.

Borrowing in Belgium for foreign residence, is it possible?

Good news! Yes, you can definitely turn to a Belgian bank for your dream home abroad. Although there is a small “but” attached.

Banks generally don’t just want a deposit on the foreign property. They also look at other assets you can give as collateral.

Think of a securities account, a mortgage on your Belgian home and more things like that. Often the interesting bullet loan is recommended. Here, you only pay interest and pay back the capital at the end.

Can you also borrow money for a holiday home abroad?

That is another option: apply to a foreign bank for a loan. If you want to choose this option, it is advisable to read the conditions carefully. Do not be surprised if the conditions at a foreign bank may be different from what you are used to in the Belgian loan game. If you are considering such a foreign adventure, be sure to have experts assist you.

Group insurance as a lifesaver

Suppose you already have group insurance. If so, it could still come in very handy in this situation. Here are a few tricks:

Use your group insurance as security:

• Use your group insurance as extra security for your foreign accommodation within the European Economic Area. Banks often look at this positively.
• Timing is everything. Let the end of your bullet loan coincide with the payout of your group insurance. That way, you’ll kill two birds with one stone.
• Ask for an advance on your group insurance: if your group insurance allows, you can even ask for an advance on the accumulated amount. Win-win, right?

Just be sure to check the regulations of your group insurance thoroughly to see what is possible. That way, you will be well prepared for your trip to your foreign dream residence.

Conclusion

Borrowing money in Belgium from Belgian banks can certainly lend a hand in realising your foreign dream. Explore the possible options you have and, if possible, use your group insurance smartly. Good luck and enjoy your search for your holiday home abroad.