Home Loan Sanction Letter Template for Belgium

The Home Loan Sanction Letter is a crucial document in Belgian residential property financing that marks the formal approval of a mortgage loan application. It is issued by banks and financial institutions after completing their credit assessment process and serves as the foundation for the subsequent mortgage deed. The letter outlines all essential aspects of the approved loan, including financial terms, conditions, and requirements that must be met before funds are released. Under Belgian law, this document must comply with strict consumer protection regulations and transparency requirements established by both national legislation and EU directives. The sanction letter is typically issued before the final mortgage deed is drafted by a notary and represents the bank's commitment to provide financing, subject to specified conditions being met. It forms part of the pre-contractual documentation required under Belgian mortgage regulations and provides borrowers with detailed information needed to make an informed decision about their home loan.

1. Bank Details and Reference: Bank's letterhead, branch details, reference numbers, and date of letter

2. Borrower Information: Full name, address, and identification details of the borrower(s)

3. Property Details: Complete details of the property being financed, including address and cadastral references

4. Loan Approval Declaration: Clear statement of loan approval and basic terms (amount, purpose, term)

5. Key Financial Terms: Loan amount, interest rate, term, monthly installment amount, and total cost of credit

6. Interest Rate Details: Type of rate (fixed/variable), reset periods if applicable, reference rate details

7. Repayment Schedule: Monthly installment details, payment dates, and method of payment

8. Security and Mortgage Details: Details of the mortgage registration requirements and other securities required

9. Insurance Requirements: Mandatory insurance policies required (property insurance, life insurance)

10. Key Conditions Precedent: List of conditions that must be fulfilled before loan disbursement

11. Important Deadlines: Validity period of the sanction, timeline for document submission and completion

12. Contact Information: Details of the relationship manager or department for further communication

13. Acceptance Declaration: Section for borrower's acceptance and signature