There are some strict rules for financing a flat that has been sold off before completion (VEFA). We explain how to finance your new flat.

The amount of the personal contribution

For an off-plan purchase, the banks' rules are the same as for the old one. In general, the personal contribution required represents 10 % of the total cost of your purchase. Or, it must cover the security deposit, which amounts to 5 % for properties where the deed of sale will be signed within the year. If the contract is expected to be signed in more than 12 months, the deposit is 2 %.
However, it is possible to find financing solutions at 100%. Ask a mortgage broker for advice  atHomeFinance !

Finding the best home loan

If consulting your bank is always the first thing to do when you want to take out a mortgage, you should also take the time to analyse several offers. If you don't have the time to do this, you can use the services of a real estate loan broker.

Good to know: the insurance linked to your mortgage does not have to be taken out with your bank or the organisation that depends on it. Loan insurance rates vary greatly depending on the type of cover offered.

The release of funds

The funds are paid to the developer in instalments. You will not have to intervene in this procedure, it is the developer who will contact your bank. The developer is obliged to provide a certificate of the work done with the money already received. In general, 35 % of the total purchase price is paid once the foundations are completed, 70 % when the building is protected from the weather (waterproofing) and 95 % at the end of the construction. The remaining amount due will be paid at the handover of the keys or after the adjustments related to the reserve right.

VEFA: when to start repaying your loan?

There are three options for repaying your mortgage on a new flat:
- As soon as you sign the contract of sale: however, you will have to pay back your loan at the same time as your rent or monthly loan payments for your current home.
- Deferred capital repayment: you will pay the interest on the interim period, but your first capital repayment instalment will be payable when you hand over the keys.
- In total deferment: you will start paying the interest and the capital when you move in.