Energy crisis and KBC Home Loans: repayment holiday for private individuals 

The equal monthly instalments you pay on your home loan comprise an interest component and a principal component. 

When you take a repayment holiday, you only pay the interest on your home loan (and not any principal) for 12 consecutive months. This means that you pay less each month during the holiday period. 

Therefore, repayment holiday in the rest of this explanatory note always relates to the (temporary) non-payment of principal and is encapsulated in the term ‘principal repayment holiday’.

We automatically extend the end date of your home loan by 12 months. In other words, paying off your loan will take 12 months longer than originally planned. 

You can apply for a principal repayment holiday if you meet all the criteria below:  

1. The home loan you’re requesting a repayment holiday for was taken out to finance your current main residence in Belgium.
2. At the time you apply for a principal repayment holiday, your savings reserve amounts to less than 10 000 euros, i.e. the aggregate amount you hold in current accounts, savings accounts and your investment portfolios at your own bank and any other bank. Pension savings schemes are not included in this figure.
3. On 1 March 2022, you didn’t have any arrears on the home loan for which you’re requesting a principal repayment holiday. 
4. You either already have, or have requested to make, a payment arrangement with your energy supplier.

If you meet all the above criteria, you can submit your request which will be given due consideration after an additional credit check has been performed. 

No, the bank won’t charge you any handling or administration fees. One condition, however, is that you request this repayment holiday in the context of the energy crisis and that you meet the eligibility criteria (see ‘What are the criteria for granting a 12-month principal repayment holiday?’).

As from 19 September 2022, you can start your request in KBC Mobile and KBC Touch by simply going to the home loan you want to take a principal repayment holiday for, selecting ‘Ask a question about your home loan’ and then ‘I wish to take a loan repayment holiday due to soaring energy prices’. After receiving your request, a KBC employee will contact you via KBC Mobile or KBC Touch with information on what happens next. 

If you don’t have KBC Mobile or KBC Touch, you can quickly and easily install it. This will enable us to deal with your request more efficiently. 

If you have taken out several home loans and want to request a 12-month principal repayment holiday for all of them, you’ll have to submit a separate request for each one.

If you prefer to speak to someone at KBC, go to our website and make an appointment with one of our Home Experts. You can then discuss with them how to go about submitting your request. 

The bank will have you formally confirm in a sworn declaration that you meet the eligibility criteria for a 12-month principal repayment holiday. As regards a payment arrangement with your energy supplier, you will have to upload a document confirming that an arrangement is in place or a request has been made to that effect. 

The bank needs 10 calendar days to process your request. Requests submitted and approved on or after 19 September 2022 will only become effective for loan payment due dates on or after 1 October 2022. 

You only pay interest on the outstanding principal during the holiday period, and the term of the home loan is automatically extended by 12 months.

The repayment holiday may mean that, in the years when repayment of principal is temporarily suspended, you will not be able to fully capitalise on housing bonus or long-term savings opportunities, meaning you won’t get as much tax relief. Under the current legal framework in Flanders and Wallonia, extending the term of the loan generally doesn’t result in an extension of the tax relief period.

Your monthly payments of principal and interest will resume automatically at the end of the 12-month holiday period. You can view your repayment schedule at any time in  KBC Mobile and KBC Touch.