The different types of housing loans

You will probably need a loan to buy or build your dream home. But which loan should you choose? And what kind of interest rate? And how will you pay it all back?

To make it easier to understand, let us take a look at Sophie and Bertrand. They have their eye on a property for 200,000 euros, and want to take out a joint loan to pay for it.

Interest rates

When you borrow money, you pay interest on the amount borrowed. The interest is calculated as a percentage: the interest rate. For home loans, you can choose between fixed or variable interest rates.

Home loans

Home loans are loans intended for private individuals who are buying, building or performing large-scale renovations on a property for private use. The most common home loans are:

Sophie and Bertrand try to find what is best for them.

Are you buying a new home in Flanders and you want to renovate it?

Since January 1st 2021, new owners of a house or flat are able to take out an interest-free renovation loan at the same time as taking out a mortgage loan. Indeed, under certain conditions, if you buy a property with a low energy performance and significantly improve it within five years, the rate of the renovation loan will be 0%. Discover more about it on vlaanderen.be.


Every month you transfer an amount to the bank in order to pay back your loan. This amount consists of a capital part and an interest part. You can decide to pay off a fixed amount every month, or a variable amount.

You now know enough about loans! What next?

You know whether you want to build or buy a property and you have a good idea of which home loan is best suited to your project. It’s now time to bring ING into the picture!

My loan in 5 easy steps