Why you can take out a home loan too as a single person

Today, more than a third of households in Belgium are singles, with or without children. We often hear that buying your own home on just one income is a mission impossible. However, the figures tell a different story. In fact, about one in three new Belgian mortgages is taken out by singles.

More and more Belgians are buying an apartment or house on their own, without a partner. Single people have been the largest group of apartment buyers for some time now, and this trend is continuing steadily. According to the federation of notaries Fednot, no fewer than 58% of registered deeds of sale for apartments went to single buyers in 2024.

The proportion of single people is also growing on the house market. In 2024, one in three homeowners – 38% to be precise – bought their property without a partner. In Wallonia, where property prices are generally lower, their proportion is even higher, with 45% of homes going to a single buyer. The figures also show that on average, single people pay less for their homes than couples. For example, in 2024, they spent an average of 273,628 euros on a house, compared to 360,597 euros for couples – presumably because they opted for a slightly more modest home. For apartments, the difference was slightly less pronounced: singles paid an average of 252,070 euros, while couples paid an average of 287,719 euros.

Singles borrow 'differently'

Banks apply the same criteria to singles as they do to couples when granting loans. However, singles bear more of the burden themselves. This means that in practice, singles tend to borrow a smaller amount and are more likely to opt for a fixed interest rate and longer loan term.

• According to data from UPC-BVK, the trade association representing consumer and mortgage loans, around 90% of mortgage holders opted for a fixed interest rate in 2024. A fixed interest rate offers certainty: the monthly payments are constant regardless of any future interest rate fluctuations. Because singles often have a more limited financial safety net, most opt for long-term security and peace of mind.
• Mortgages are traditionally taken out for 20 years, but many singles borrow for 25 or 30 years. Spreading the loan over more years significantly reduces the monthly repayments. This means that single-income households can still finance their own home without stretching themselves on the repayment every month. Do note that a longer loan term ultimately means more interest charges, but it does make it easier to get on the property ladder and the costs are less taxing over time. Repaying 700 euros per month may seem like a lot today, but in a context of rising wages and inflation, that amount may be much easier to pay in 10 or 20 years' time. Many single people deliberately choose a loan with a long term and may later still decide to repay or refinance the loan early when they are financially more comfortable.
• Singles often borrow lower amounts than couples because they tend to buy smaller homes. A compact terraced house, an apartment or a home that needs work are popular among singles.
• Singles are more likely to opt for a progressive repayment home loan. This means that you pay less in the first few years, after which the monthly payments increase gradually. They may increase annually or every five years, for example. For first-time buyers or singles who expect their income to increase (or who expect a dual-income situation in the future), this offers some breathing space in the early years. Thanks to the lower initial charges, you can borrow more at the outset. After around 10 years, you may be in a stronger position, making the higher repayments more manageable later on. Not all banks offer this type of loan. Keytrade Bank, for example, does not currently offer a progressive repayment home loan.

Deposit and maximum loan repayments

Banks mainly assess your application based on the level of own assets you are paying as a deposit in relation to the value of the home and how much your monthly credit repayment can be.

● Deposit required. The National Bank of Belgium (NBB) has a rule of thumb that says that banks can finance up to 90% of a home's purchase value. In concrete terms, this means you have to use your own savings to pay a deposit of at least 10% of the price of the home. You also need to cover all the additional purchase costs such as stamp duty, notary fees and administrative charges. These additional costs are often up to 10% of the price, which means that you need to cover roughly 20% of the purchase price yourself. For a home worth 300,000 euros, you need to have roughly 60,000 euros available as a single person. However, banks can be more flexible for first-time buyers. The NBB allows a limited percentage of new loans to have a higher loan-to-value ratio (up to 100%), but this is not an established right. In practice, most banks require the buyer to pay a deposit of ideally 20%.

● Debt burden and living expenses. In the past, the rule of thumb was that your monthly instalment should be about 1/3 of your net income. Today, banks apply more refined criteria. What matters is the amount you have left to live on after paying all your loan instalments. The minimum amount required for living expenses is usually around 1,100 to 1,200 euros per month for singles. In other words, after your home loan (and other fixed expenses such as other loan repayments, energy bills, property tax, etc.), you still need an amount to spend on food, clothing, insurance, etc. In practice, one single person may be able to easily spend 50% of their net salary on housing expenses, while another may reach their limit at 30% depending on their salary level and costs. A permanent employment contract or stable career is almost indispensable.

Support measures and tax benefits

When you buy your first home, you can take advantage of a number of government measures that will make your financing a little easier.

1. Flanders

• Reduced stamp duty. Flemish stamp duty on your only main residence fell from 3% to 2% on 1 January 2025. This rate applies to the purchase price of an existing home if you don't own any other home and you are going to live there yourself.
• Mortgage Payment Protection Insurance. When you take out a mortgage loan, you can apply for mortgage payment protection insurance (Verzekering Gewaarborgd Wonen) in Flanders. This free insurance covers part of your loan repayments for 10 years if you become unintentionally unemployed or unable to work. If you lose your income (for example due to redundancy, bankruptcy or illness), the Flemish government will make a monthly payment to the bank for up to 36 months.
• Social loans for modest incomes. If you are a single person on a low income, you may be eligible for a low-interest social loan. In Flanders, there is the Flemish Home Loan. This allows you to borrow at a lower interest rate and often enables you to finance up to 100% of the home's purchase (and renovation) costs.

2. Brussels

• Stamp duty exemption. Unlike Flanders, Brussels has a stamp duty exemption rather than a reduced stamp duty rate. The stamp duty on a purchased property in Brussels is 12.5%, but under certain conditions there is an exemption from any stamp duty on the first 200,000 euros of the purchase price. This saves you 25,000 euros. An additional exemption is also possible for renovation work that improves the home's energy performance.
• Social loans via the Housing Fund. The Housing Fund of the Brussels-Capital Region offers mortgage loans at fixed interest rates between 3.25 and 5% (depending on family composition and income). These are specifically intended for prospective buyers who are unable to obtain financing from regular banks because their income or deposit is too low. There are also several accredited social credit companies in Brussels that provide low-interest mortgages to people who can't find a solution on the private banking market.

3. Wallonia

• Reduced stamp duty on first homes. On 1 January 2025, the stamp duty in Wallonia fell from 12.5% to 3% if the property you are buying is your first home. To be eligible, the property must be your only home, you must use it as your main residence within 3 years (or 5 years case of a new build or renovation), and you must not own any other property (unless you have committed to selling it within 3 years).
• Walloon Social Credit Company. The Société Wallonne du Crédit Social (SWCS) is an institution that offers social mortgages in Wallonia. Its social loans (prêts sociaux) offer various advantages, such as a fixed interest rate, a term of up to 30 years and a 50% discount on notary fees.
• Free mortgage payment protection insurance. Wallonia also offers mortgage payment protection insurance (Assurance gratuite contre la perte de revenus), similar to that in Flanders. This insurance helps you to repay your loan if you become involuntarily unemployed or unable to work.

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