Update on the rules governing the deduction of taxes on mortgage credit
The use of mortgages is becoming more common and there are many reasons for this. This can include work on your home, the arrival of a baby, or a lack of income in the home. In any case, the mortgage loan is a good alternative for those who own one or more real estate. This approach consists of putting the property as collateral to be able to benefit from a loan and in particular to enjoy stable cash flow or reduce monthly charges. It offers the opportunity to benefit from better management of family capital while other loans are also being started. Generally, the mortgage loan can reach up to 65% of the estimate of the property to be mortgaged. Those with high value property will be able to aspire to higher credit.
The privileges obtained in relation to the new tax deduction clause on the mortgage
Note, however, that since 1 January 2005, the legislature enacted a new tax reduction system on the mortgage. This is the “basket” system. On the same level as the tax declaration, the owner of the property to be mortgaged can deduct the sum of the borrowed money, the interest received, but also all the premiums relating to the mortgage loan from his taxes. However, the total amount of the deduction is capped at $ 2,120 per year per person who subscribes to the mortgage loan.
The regulations governing the premiums for real estate in the Walloon Region
- Bonuses for the house: there are many bonuses granted by the Walloon Region and among these are notably bonuses for the rehabilitation of a home, bonuses for renovating or bonuses for carrying out energy saving works.
- The acquisition premium: the acquisition premium is a financial contribution amounting to $ 745 transferred by the Walloon Region and governed by certain clauses. It is granted to people who buy a house that belongs to the public sector in public sale. This concerns in particular a house put up for sale by a municipality, by a housing company, by post. If a person benefits from the acquisition premium, he also enjoys a discount on the rights of ‘0% registration. In the case of the purchase of an improved house, the person can also, in addition to the acquisition premium, request a rehabilitation bonus, this excludes the increase expected for the purchase of the housing to be rehabilitated.
- The premium on the repayment of the mortgage: a borrower can also obtain a mortgage credit by the guarantee of Wallonia. This then ensures the repayment of this credit. The objective of this bonus is to offer people who do not have sufficient capital the possibility of enjoying a loan despite their situation.