Buying a home? The first thing we think about are a mortgage and the associated tax advantages. These advantages are particularly interesting when it is your only home. However, property can also be financed through a supplementary pension scheme. What are the possibilities for employees or self-employed persons?
Legislation offers various options to finance property using a supplementary pension:
– an advance on the policy,
– pledging the death benefit or pension reserves, or
– a loan through reconstitution.
The possibility to finance property must be provided for in the pension regulations and always depends on the specific rules of the insurer and the financial institution that granted the mortgage.
The immovable property must return a taxable income and be situated in the European Economic Area (these are the countries of the European Union plus Iceland, Liechtenstein and Norway).
The range of possible property transactions is extensive: acquisition, construction, renovation, improvements or repairs, (re)construction of a terrace, landscaping, (permanent) swimming pool, sandblasting the façade, paintwork and such all qualify. Furthermore, this type of property finance is not only intended for your only own home, but applies to all types of immovable property and without any restriction in terms of numbers (second home, building lot, commercial property, forest, etc.).
More information about the various possibilities of property finance using a supplementary pension can be found here.