Glossary - lexicon

Often used terms related to loans and credits has an eye for the needs of its visitors. Through this credit glossary in this Credit Dictionary we try to inform you about the terms used with credit products. We try to keep the information about loans and credits as simple and clear as possible.

Credit Terms A:

All details about how to pay off his loan, the nature of the amounts (capital and / or interest) and the repayment term.

Amount that is paid in the event of premature termination of a mixed life insurance policy. It is the value of the life insurance policy accrued up to that point, possibly less various costs.

Overview of the monthly payment for a loan for the entire duration of that loan. Changes to one or more clauses of an existing agreement. Written deed confirming this change.

With ample equity, a mortgage can sometimes be taken out that does not have to be repaid. Current mortgages can also be fully or partially converted into an interest-only mortgage.

These are all costs incurred when taking out a mortgage. For example: administration costs, closing commission, appraisal costs and notarial costs.

Deed drawn up by an authorized public official, usually a notary.

refers to the calculation of a fixed amount to be paid annually.

You repay an amount every month during the term. As a result, the size of the loan and the interest payable monthly decrease immediately. Repayment and interest are calculated in such a way that you pay the same gross monthly amount for the entire term (at the same interest rate). In the first years, this amount consists mainly of interest. In recent years mainly from repayment. The net monthly payment continues to increase during the term, as you can deduct less interest from your income each time. If your income is low at closing and you expect income to increase in the future, an annuity mortgage may be interesting in the early years.

Credit terms B:

Authorization given by the customer to enable the bank in the name and on behalf of the customer to pay the amounts claimed by the lender under the credit agreement.

Bank saving is the option to save for pension and / or mortgage via a blocked savings account or investment account. The savings amount for pension is tax deductible under certain conditions, comparable to an annuity insurance policy.

The current market interest rate that a particular bank charges for new mortgages . Usually up to 70 to 75% of the forced sale value. A surcharge may be added to the base interest as compensation for extra risk that the lender runs. The ratio between the loan and the forced sale value is decisive for the amount of the surcharge.

In addition to income from work (wages, salary,…), other factors play a role in determining the income on which tax is paid. These can be addition items (extra earnings, interest received, ...) or deductible items (interest paid, study costs, ...). A tax-free amount may be deducted from the taxable income.

Depending on personal circumstances, everyone is exempt from income tax and any wealth tax.

Credit Terms C:

The Central Credit Register of the National Bank of Los Angeles contains information about consumer credit and mortgage loans. The Central Individual Credit Register is an instrument in the fight against excessive debt. The CCP was created by the National Bank. Lenders are required to consult the CCP before granting credit; they also have a duty to report once a credit has been granted.

also called merging or regrouping loans , consists of bringing several current loans together into one new loan, usually with a longer duration and a lower interest rate. The main consequences of this are:

  • The extension of the term of the loan and thus a reduction in the monthly repayments
  • Possible reduction of the annual percentage rate (APR)
  • Possible increase of the total cost because of the extension of the duration

Personal loan , revolving credit , current account credit and blank credit. Except for a current account credit, no security is required for a consumer credit (pledge or mortgage). The credit margin is then determined on the basis of income and any other financial obligations.

Also called revolving credit , the borrower is given a certain amount. (See description of products revolving credit )

Credit Terms D:

This is a card with which the client can withdraw an amount from a bank account. You can use it to make electronic payments in-store that are debited directly from your checking account.

Interest in favor of the credit institution for credits on a current account with a negative balance. The debit interest translates as the grant by the credit institution of a credit that is called an overdraft facility and forms part of the credit facilities.

When you take out a loan through a car dealer or through a retailer.

A standing order is ideal for paying periodic invoices. It is an automatic transfer of a fixed amount to the same beneficiary on fixed dates.

Credit Terms F:

The Federal Public Service Economy, SMEs, Self-Employed and Energy mainly manages matters related to the economy, SMEs, the middle class, energy, foreign trade and science policy. In particular, this service manages the Crossroads Bank for Enterprises.

In the insurance sector: period after the occurrence of the insured event. You will only be reimbursed after this period, for example in the event of illness or unemployment. In the credit sector: period during which the borrower does not repay capital and / or all or part of the interest.

Credit Terms G:

Additions and outbuildings that belong to an immovable property. For example: garage, garden house, shed, ...

Failure to comply with the provisions of the credit agreement.

During the term of the loan, the consumer has the option to partially repay the loan at any time. In most cases, the consumer then has to pay a reinvestment fee to the lender.

Code of conduct to which almost all mortgage lenders have agreed. The code of conduct sets minimum conditions for leaflets, offers, the conditions of mortgages and calculations of the mortgage costs. Violations of the code of conduct can be complained to a Supervisory Committee.

Credit Terms H:

Minors and adults who are under guardianship (a measure imposed by the court). Usually it concerns people who cannot take care of themselves properly, such as mentally handicapped, psychiatric patients, addicts or elderly people with dementia.

Waiver of the guarantee by the mortgage creditor, for example in case of repayment of the credit after the sale of the property.

When you repay your mortgage loan early, you must pay the lender a reinvestment fee. This compensation is equal to three months of interest, which is calculated on the amount repaid early.

Taking out a mortgage on a property as a guarantee of credit.

A mortgage loan is a loan that is secured by a mortgage. This credit is intended to finance the purchase or maintenance of real estate rights. A natural person is permitted who (mainly) acts with a purpose that has nothing to do with his commercial, professional or craft activities and who has his permanent residence in Los Angeles at the time of conclusion of the agreement.

A mortgage loan is a loan that is secured by a mortgage. This credit is intended to finance the purchase or maintenance of real estate rights. A natural person is permitted who (mainly) acts with a purpose that has nothing to do with his commercial, professional or craft activities and who has his permanent residence in Los Angeles at the time of conclusion of the agreement.

A mortgage is a collateral guarantee that is used for, among other things, immovable loans. Thanks to a mortgage, the mortgage creditor can sell your property if the credit is not repaid and can be repaid in priority before the other creditors.

Credit Terms I:

Amount that the debtor pays to the creditor as compensation for the use of the borrowed money. Thus, an annual interest of 9% means the borrower will pay to the lender 9 US dollars per 100 US dollar borrowed each year.

The ability of a creditor to demand immediate repayment of all or part of the amount owed by the debtor (for example, in the case of overdue unpaid installments).

Credit Terms J:

The gross amount you receive annually.

The annual percentage rate or APR was introduced to combat abuses by certain bankers (usurious interest). The APR is especially important because it subjects the method of calculating the interest rate of a credit to a standard and includes all associated costs. Because the interest rate takes into account all the costs of the credit and is calculated in the same way by each bank, various banks can be compared with each other.

The effective interest that you must pay annually on your loan or mortgage.

Credit terms K:

The credit intermediary is a natural or legal person who assists in concluding the credit agreement in the context of his commercial or professional activities. Credit intermediaries are usually credit brokers or delegated agents. The credit intermediary can only exercise his activity if he has first registered with the FPS Economy.

The lender is the credit institution that provides money in the form of a loan to a person who requests it. Not only traditional lenders are considered a lender, but also any person who mainly provides loans or credits.

is an acquisition and merging of your existing credits and loans.

The credit mortgage is also called overdraft mortgage. You agree a maximum amount to be borrowed with the bank. You may withdraw up to this agreed maximum. Interest is only paid on the amount withdrawn. If you temporarily have money left over, you can repay it and your monthly amount will decrease.

The sum of the interest and the associated costs (file costs, insurance , ...)

The maximum amount, the reserve, the limit to which you can borrow with your credit card.

Any credit agreement, regardless of name or form, whereby purchasing power, an amount of money or any other means of payment is made available to the consumer who can make use of it by means of cash withdrawal - by use of a payment or identification card or in some other way - and is obliged to repay in accordance with the agreed conditions.

A lender or creditor is a natural or legal person who grants credit to a consumer in the context of his professional activities. Lenders are banks or financial credit institutions. We would like to point out that in the case of consumer credit, each lender must be recognized by the FPS Economy, SMEs, Self-employed and Energy before being allowed to exercise any credit activity.

Credit terms L:

Any credit agreement, regardless of its name or form, whereby money or any other means of payment is made available to a consumer who undertakes to repay the loan by periodic payments.

The loan rate is the percentage that roughly calculates the cost of a loan to the borrower or the proceeds to the lender for a specified period of time.

Undertaking by which the consumer allows the creditor to withhold the portion of his wages transferable in accordance with the Act of 12 April 1965 on the protection of employees' wages in the event of default with his employer.

Credit terms M:

The amount that you pay monthly in interest and repayment.

The interest that you pay per month.

When you have co-signed a financing contract, from the bank's point of view, you are jointly responsible for repaying the full loan amount. The Financing may not be for your own use, yet you have undertaken to contribute to this financing.

Person who signs the agreement together with the borrower. This person, like the borrower, has the provided credit and is subject to the same obligations.

Credit Terms N:

The National Mortgage Guarantee (NHG) is provided by Stichting Waarborgfonds Eigen Woningen. It is the name of the guarantee you can get when you take out a loan to buy or renovate a home. With this, the Guarantee Fund guarantees the repayment of your mortgage (amount) to the lender.

The true cost of a mortgage.

The amount borrowed by the consumer.

Credit agreements without an end date or with a running period of more than five years that do not provide for periodic repayment must be reset to zero within an agreed term. After that, you can borrow again without submitting a new loan application.

Credit terms O:

Deed drawn up without the intervention of, for example, the notary.

A private sale has to do with the purchase or sale of a real estate. An agreement is concluded between a seller and a buyer on such or those terms. The sale can take place with the help of an intermediary, such as a notary. The parties will usually sign a contract of sale before signing an authentic deed with a notary public.

A possibility in the contract on the basis of which the agreement can be terminated. Anyone who wants to make use of a resolutive condition must make this known to the contracting party. When buying a house, it is common to include resolutive conditions in order to obtain appropriate financing.

If a consumer fails to make the repayments stipulated in the credit agreement, the right to pay with the monthly installments as formulated in the contract lapses. The lender demands the immediate repayment of the credit.

There are several types of credit that meet this requirement, the term withdrawal credit means that you have the option of withdrawing money that has been repaid.

Transfer your current mortgage loan or credit with another lender to obtain a more favorable interest.

Credit terms P:

The personal loan is a credit that is not intended for a specific purchase. When applying for a personal loan , it is not necessary to state what the loan amount will be used for. Once the loan has been granted, the borrower can spend the amount as desired. The personal loan is a repayable credit that is repaid in fixed monthly installments. The loan amount is immediately made fully available. The amount, repayment term and interest rate are predetermined. Basically the old name of installment loan.

The commutation of a current life insurance policy, whereby the obligation to pay premium ends. At the same time, a new insurance policy is taken out with the same content, but for a lower insured amount.

A folder in which a lender indicates the conditions for granting a loan.

Credit terms R:

Possibility offered by law to the consumer to renounce the agreement within a period of at least 7 days in the case of an agreement concluded at a distance, without a physical meeting between the customer and the lender.

With an interest credit, the borrower has a grace period during which he may or may not be able to repay his debt or withdraw amounts repaid. He only pays the interest on the debt every month. This offers the advantage that the monthly costs are lower. It is a good formula for people who expect that they will have more spending space in a few years.

When taking out a mortgage, the interest is fixed for a specific period, for example fifteen or twenty-five years.

Money reserve from which the borrower can draw as desired depending on his or her credit. The minimum monthly amount to be repaid is determined by the remaining balance due. Reserve is built up as it is repaid.

Credit terms S:

Natural person or organization with whom a debt is outstanding.

Neutral person (bailiff, lawyer, civil-law notary or an authorized public or private institution) who tries to reconcile the interests of the creditor and the debtor in the event of payment difficulties.

Insurance that pays back the outstanding balance to the lender in the event of the borrower's death. Some policies also cover the inability to repay the loan due to disability.

Being able to repay an amount due.

A Savings Loan is a revolving credit linked to a savings insurance. You usually pay a monthly amount for interest and repayment for a revolving credit. With a Savings Loan you only pay interest, which is calculated on the amount you have withdrawn. During the entire term you can continue to withdraw amounts up to your credit limit.

Credit Terms T:

Right to use a credit in the context of a credit facility. The interest is only due if the amount is actually used.

Date on which a particular payment (monthly, quarterly payment, etc.) should be made. The term is also used to indicate the amount of this payment. A term expires when the date for payment has passed.

All details about how to pay off his loan, the nature of the amounts and the repayment term.

Calculated based on your monthly costs and your monthly financial income.

Credit Terms U:

In case of postponement of payment and recovery, the judge will allow you to pay off your debts a little later or will impose a regulation on how you can pay off your debts in installments over a longer period. The creditor may then not impose an attachment.

Credit Terms V:

The due date is the day on which payment must be made. How much depends on your agreement. Usually, the financial institution offers you a say in determining that due date.

Repayment of the loan by the borrower before the expiry of the initially agreed term of the credit. A reinvestment fee may be attached to the early repayment.

Misleading term. If you sign a provisional purchase contract, the purchase is indeed final, subject to a justified appeal to a possible resolutive condition.

Credit Terms W:

Period after signing an insurance policy in which certain risks are not covered.

It is about compliance or non-compliance with an agreement between a debtor and a creditor. The debtor deliberately or unknowingly defaults in paying a due date of the debt or interest. If you pay or do not pay the repayments of your credit too late, the lender must report this to the Central Bank for Credits to Individuals of the National Bank .

Certain loans such as the interest loan or loans with a credit line allow the borrower to re-draw capital repayments already paid.

If the borrowers repay their mortgage credit or their consumer credit early, the financial institution may in certain cases charge a fee for this, called a reinvestment fee.