30 Jul

The social loan explained.

People have various reasons for borrowing cheaply. Are you looking for tax optimization or is it purely a major purchase? If you do not have sufficient resources, for example, to finance the purchase of your house or apartment, you can apply for a social loan from the government. You must then meet a number of conditions.

The Flemish Housing Loan from the VMSW is an affordable home loan for those who have a modest income and still want to buy their own home in the Flemish Region. You can get the Flemish housing loan for:

  • the purchase of a home or social property
  • the maintenance of a home (eg after a divorce)
  • the renovation, improvement or adaptation of a home
  • the purchase and renovation of a home.



To receive a Flemish Housing Loan, the home or building land must be located in the Flemish Region. You must also meet a number of conditions on the day on which you pay the administration costs of 100 euros:

  • age: you must be 18 years or older and the loan must be fully repaid in the year in which the oldest borrower turns 70
  • ownership: you and the persons with whom you apply for the loan may only have the property for which you apply for the loan in full ownership or usufruct. You may also not have any other building land or plot fully owned or fully usufruct
  • stay in Belgium: you must be able to prove that you can stay in Belgium for a long time
  • income and financial capacity: you can find all the conditions for the Flemish Housing Loan on the website of the VMSW.

The interest rate of the loan is also determined on that date (the reference date).

The estimated sales value of the home or building land may not be higher than predetermined maximum amounts. An estimator of the VMSW will make that assessment. For a number of key cities and municipalities in the Vlaamse Rand, the maximum amounts are higher than elsewhere in Flanders.

How to apply?

How to apply?

To register for the Flemish housing loan, make an appointment with a social housing company (SHM) that provides the Flemish housing loan.

If you visit an SHM, you must bring the following documents:

  • your identity card
  • your last available assessment notice
  • all supporting documents relating to your current income and that of the persons who take out the credit (at least three last income tokens).
  • a certificate of your family composition.

Cost price

Cost price

The amount that you can borrow differs depending on the activity for which you borrow. No more than 100% of the sales value of the property estimated by the VMSW is ever borrowed. Nor is more borrowed than the price of the transaction (eg the purchase price of the home, the cost of the works, etc.).

The interest rate is calculated based on:

  • the net taxable income
  • the number of dependents
  • the location of the home, the apartment or the building land.

The standard duration of the loan is 20 years.



Also view the full range of affordable loans that you can get from traditional lenders! Also and especially if your income is just too high for a Flemish housing loan.

Start your loan application here!

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