Translating Mortgage Loan Documents in Belgium: Bank Guide

Do you earn income abroad, are you a non-resident or cross-border worker, and do you wish to take out a mortgage loan in Belgium? Belgian banks may require certain foreign financial documents to be translated before examining your file. Here is what you need to know to prepare a solid file.

When does the Belgian bank request translations?

For a borrower whose income and documents are all Belgian, the question of translation generally does not arise. However, several common situations lead Belgian credit institutions to require translations of foreign documents:

• Non-resident borrower: you live abroad and wish to buy or invest in Belgium. The bank needs to understand your overall financial situation and your income
• Foreign income: you reside in Belgium but work for a foreign employer or receive income from foreign sources (rents, dividends, pension from a third country)
• Foreign property given as collateral: if you offer a property located abroad as additional collateral (foreign mortgage), the bank will need documents relating to this property, often in a foreign language
• Cross-border workers: Belgian residents working in Luxembourg, France, the Netherlands or Germany - a very common situation in Belgium

The Belgian legal framework of the mortgage loan is defined by the law of 4 March 2014 on mortgage credit, transposing the European directive 2014/17/EU (directive on credit agreements for consumers relating to residential immovable property). This law imposes on credit institutions obligations of rigorous assessment of the borrower's solvency, which explains the requirement of complete and comprehensible financial documents.

Foreign documents to translate for your credit file

The financial documents most often requested by Belgian banks for borrowers with foreign income are:

• Pay slips (salary slips): generally the last 3 months, sometimes the last 6. The bank must be able to read and understand the structure of your remuneration (gross salary, net, bonuses, benefits in kind)
• Employment contract: to verify the nature and duration of the contract (CDI, CDD, part-time), the name of the employer and the remuneration conditions
• Tax return or tax assessment notice: proof of the previous year's income for the self-employed or to supplement the pay slips of employees
• Foreign bank statements: the last 3 to 6 months, to assess the financial behaviour and the regular flows
• Statement of ongoing loans: if you are already repaying other loans in your country of residence or work, these commitments enter into the calculation of your repayment capacity
• Title deed or foreign cadastral extract: if a foreign property is offered as additional collateral

Certified or sworn translation: what does the bank request?

For the documents of the credit file (pay slips, employment contract, bank statements), Belgian banks generally accept a professional certified translation, that is to say a translation carried out by a professional translator who certifies the accuracy of their translation. They do not necessarily require a sworn translation before a court (RNEJ sworn translator), unlike public administrations.

However, the practice varies from one institution to another. Some banks or their legal department may require a sworn translation for the most important documents (employment contract, tax assessment notice). It is always preferable to verify with your bank advisor before ordering your translations.

For the documents related to the notarial deed (sale agreement, authentic deed), it is a completely different matter: the deed itself will be drawn up in French or Dutch depending on the Region (legal obligation). If you do not understand the language of the deed, you may request to benefit from an informal translation or the assistance of an interpreter, but this step is at your expense and is distinct from the credit file.

The National Bank of Belgium and the central credit register

Before granting a mortgage loan, every Belgian credit institution is required to consult the Central Credit Register for Individuals (CCP) managed by the National Bank of Belgium (BNB). This register records all the credits granted in Belgium as well as the payment defaults. It contains, however, only the data relating to Belgian credits: credits taken out abroad do not appear in it. This is why banks request statements of foreign loans directly from borrowers.

The FSMA (Financial Services and Markets Authority) supervises the compliance of Belgian credit institutions with the law of 4 March 2014. It publishes useful information for consumers on the rights and obligations regarding mortgage credit.