Building land purchase loan in Belgium

The land purchase loan: land alone or with construction

A land purchase loan is a mortgage that finances building land. There are two cases. Either you buy the land alone and will build later, or you finance the land and the construction at the same time.

The second case is often simpler for the bank, because it then assesses a complete project, with a finished property as guarantee. For land alone, on the other hand, some banks are more cautious.

Land purchase loan: check the land before signing

Building land must be able to accommodate your project. That is why you should check several points before signing. The bank will often ask you the same questions.

• Planning : building zone, local regulations and possibility of obtaining a permit.
• Utilities : connections to water, electricity, sewers and road access.
• Soil : nature of the land and possible pollution, which can increase the budget.
• Price : consistency with the local market and with your overall budget.

Also add a condition precedent of obtaining the loan in your purchase offer. To word it properly, read the mistakes to avoid in the sales agreement.

Land purchase costs: to include in your budget

Buying land involves registration duties and notary fees, just like a house. These costs therefore normally remain at your expense and are paid from your savings.

However, depending on the region, advantages exist under conditions: allowance in Brussels, reduced rates in Wallonia and Flanders. These advantages often require you to build your home there within a set period. Your notary then checks your situation. Estimate your costs now with our notary fees simulator or our guide to registration duties.

Land purchase loan: the Belgian rules to know

In Belgium, each region sets its own rules for building land. Here are the points to check with your notary before signing.

• Building zone : in Wallonia, the sector plan shows the zone; in Brussels, it is the PRAS/GBP; in Flanders, the gewestplan and implementation plans. In principle, only a residential zone allows you to build your home.
• Soil condition : each region keeps an inventory of polluted land. The seller must therefore provide the required certificate or extract before the sale.
• Registration duties : they apply to the purchase of the land. Regional advantages for a single home normally require you to build there within a set period.

Land purchase loan: what banks look at

First, the bank analyses your income, your charges and your own funds. Then it looks at the value of the land, whether it can be built on and how realistic your project is. A costed construction budget is therefore more reassuring than a simple intention to build.

We therefore present your land purchase loan to the banks most open to this type of project, among 7 banks compared. Finally, we negotiate the rate and conditions, for better chances of approval.

How your application works

A single point of contact to analyse, build and defend your file.

Frequently asked questions about land purchase loans

Page written by Hypoprime, mortgage broker in Brussels. The financing of land depends on your profile, the project and the banks' policy; purchase costs still need to be planned for. A complete analysis is essential. Warning: borrowing money also costs money.