People who are struggling financially due to the corona crisis will still be able to request an extension of payment for their mortgage credit until March 31 next year. That was knocked down on the core cabinet yesterday, confirms the spokeswoman of Minister of Finance Vincent Van Peteghem (CD&V). The scheme normally expired at the end of this year.
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The option to request a postponement for the repayment of home loans was introduced during the first corona wave in the spring. It was initially valid for six months until October 31, but has already been extended until December 31. Now the government is adding another three months, until March 31, 2021, confirms the cabinet of Minister of Finance Vincent Van Peteghem. At the beginning of March, the system will be re-evaluated if the government decides to extend the system of temporary unemployment due to corona again.
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Conditions
Conditions are attached to the payment postponement. For example, the income must have fallen or disappeared due to the corona crisis, you may not have more than 25,000 euros in savings in current, savings and securities accounts and you can request a maximum delay of payment for a maximum of 9 months. For example, anyone who has already been granted an extension of 6 months can now request this for a maximum of 3 months. The banks do not charge additional administration costs, but interest must in most cases be paid for the duration of the postponement. The latter does not apply to families with an income below 1,700 euros net per month. they can “push a full pause button”, says Van Peteghem. The months in which no payments were made are then simply added to the predetermined period without interest being owed.
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Company loans and guarantee scheme
The government is also extending the option to request a deferment of payment for business loans until the end of March. That should also give companies some extra breathing space. For companies, too, this payment delay may not last longer than 9 months in total.
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Finally, the guarantee scheme for SME loans will also be extended, until 30 June next year. There will also be an extension of the scheme: it now applies to bridging loans with a term of up to 5 years instead of 3 years. For loans with a term between 3 and 5 years, the maximum interest rate that banks can charge will go from 2 to 2.5 percent. This should ensure that banks feel sufficiently empowered to also provide loans and guarantees to companies with a higher risk profile that today find it more difficult to obtain a corporate credit, says Van Peteghem.
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“The corona crisis has lasted longer than we would all like. For families and entrepreneurs in a system of temporary unemployment or forced (partial) closure, the crisis will hit hard,” says Van Peteghem. “We give them extra oxygen by extending the payment deferral for their mortgage and business loans. People in a financially vulnerable situation should discuss with their bank what the best solution is for them.”
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