Bullet Loan

Bullet loan for senior executives

A bullet loan from NN is a mortgage loan linked to your insurance policy or pension insurance policy. You pay interest only on the capital amount borrowed during the term. On the maturity date, you repay your bullet loan in one go with the capital released from your insurance policy. This means you can invest in private property now with capital that only becomes available to you later.

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Why finance property with a bullet loan?

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Use future capital now to renovate, buy, refurbish, extend, etc.

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Can be combined with a classic mortgage loan

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You don’t repay the bullet loan until the end of the term

How does it work?

• NN lends you the funds to finance your property project. This loan is made up of a bullet loan for 50%.
• You pledge your insurance policies and pension insurance policies to NN. They then form the collateral for your loan, as it were.
• With the bullet loan you pay monthly interest throughout the entire term of the loan. With a classic mortgage loan, you pay monthly interest and capital repayments.
• You repay the capital of the bullet loan on the maturity using the savings released from one or more (pension) insurance policies.

The property must be located within the European Economic Area. It may be a second home. You don’t actually have to inhabit it yourself.

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BENEFITS
  • Use the capital you will have in the future now

With a bullet loan from NN, you can invest the capital that will be yours in the future in property now. You don’t pay back the bullet loan until then end of the term.
 

  • Possible tax benefit

Build up your underlying capital in an IPC policy and enjoy an immediate tax benefit for the company

  • The premiums paid into an IPC policy are deductible for corporation tax purposes within the limits of the 80% rule. This rule states that your statutory and supplementary pensions together may not exceed 80% of your last normal gross annual salary.
     
  • Flexible credit terms
    • Option to take out a loan until you reach retirement age
    • Choice between a fixed or variable interest rate
    • You can combine a bullet loan with a classic mortgage loan, up to a maximum of 50% of the total loan amount
    • You can take out a loan with your de facto/legal cohabiting partner or spouse.
    • If you will be employed throughout the term of the loan, then you can convert it into a classic mortgage loan with capital repayments.

 

  • Also possible with Branch 23

You can also take out a bullet loan if you opt for Branch 23 funds. Your broker will provide a realistic forecast as a starting point.

If you invest at least 50% of your IPC premiums in Branch 23 funds, then you will also receive a discount on the standard rate.

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RISKS

Please remember that in Branch 23 investments, the capital and return are not guaranteed. The risk is borne in full by the policyholder. There is no entitlement to profit-sharing.

Important documents

It is necessary to read the Essential Information Document & Document Other Pre-contractual Information before purchasing, subscribing, accepting, signing or opening an NN Omni care contract;

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Technical sheet Bullet loan

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Prospectus Bullet loan

Legal information

  • An NN Bullet loan is a mortgage loan intended for the (re)financing of property with a minimum private value of 50% located within the EEA.
  • It is a product from NN Insurance Belgium, a company incorporated under Belgian law.
  • Term:
    • Bullet: 5-45 years
    • With capital repayments: 5-25 years
    • Bullet without reconstitution: maximum 15 years

 

If you have a complaint about your NN policy, please contact NN, Quality Team, 38 Fonsnylaan, 1060 Brussels. Send an e-mail in the first instance to klachten@nn.be. Or contact the Consumer Ombudsman Service at the Insurance Ombudsman, 35 de Meeûssquare, 1000 Brussels. Tel: +32(0)2 547 58 71, fax: +32(0)2 547 59 75, info@ombudsman.as, www.ombudsman.as. It is also possible at all times to take legal action.

Your unique life deserves a personal approach. That is why we are happy to help you find an independent broker in your area