Construction & renovation
Financing paced by your building site — and well insured.
Building or renovating calls for a specific credit: the funds are released in instalments according to progress, and site insurance protects your project.
Financing a construction or a renovation differs from buying an existing property. The funds are released in instalments, at the pace of the building site (structural work, roofing, finishing…), on the basis of invoices or progress reports. You often only pay interim interest on the amounts already used, before the full monthly payments start.
On the Belgian tax side, new construction in principle falls under VAT (21%); some renovations of homes more than ten years old may benefit from a reduced VAT rate (6%) under conditions, and regional grants (Wallonia, Brussels) exist for energy-efficient works.
A building site also calls for specific insurance: "all site risks" during the works, contractors' ten-year liability (governed by law), then fire insurance once the property is completed. We coordinate credit, the schedule for releasing funds and cover for a worry-free project.
Warning: borrowing money also costs money.
Your questions, our answers
How is a construction loan released?
In tranches, at the pace of the building work: you submit the contractor’s invoices and the bank releases the corresponding funds. You only pay interest on the amounts already released, often with a grace period during the works. This is the standard mechanism in Belgium for construction and major renovation.
Is VAT reduced for renovation in Belgium?
Yes: 6% instead of 21% for renovation works on a private home more than 10 years old, carried out by a registered contractor. Demolition-reconstruction also benefits from the reduced rate under conditions. This advantage significantly changes the budget to finance — include it from the simulation stage.
Which insurances do you need during building work?
All-risk site insurance (CAR) covers damage during the works; ten-year liability of the contractor and architect is mandatory for structural work; and your fire insurance must be adapted from acceptance of the works. We coordinate credit and insurance so nothing falls through the cracks.
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