Korfine rental guarantee
Korfine Rental Guarantee:
How It Really Works
Korfine is one of the most widely used rental guarantee solutions in Belgium. Here’s what you need to know before signing up—or if you’re already a customer.
Definition
What is Korfine?
Korfine is neither a bank nor a traditional escrow account. It is a Branch 26 life insurance policy, purchased from a partner insurer, that serves as a guarantee to your landlord.
Financial Product
Branch 26 life insurance —not a bank account. Korfine is an insurance policy, not a deposit. This distinction is important from a tax and legal standpoint.
Capital Lock-up
Capital is locked in for the duration of the rental lease —the amount paid is tied up until the end of the rental lease. You cannot access it while the rental lease is in effect.
How It Works
Managed by a partner insurer — Korfine markets the product, but the life insurance policy is issued and managed by a licensed insurer. Korfine acts as an intermediary.
Legal Coverage
Approved in all three Belgian regions —Korfine is valid in the Walloon Region, the Brussels Region, and the Flemish Region. The maximum amounts vary by region.
Process
Subscription: How It Works
From the landlord’s request to the issuance of the certificate—here are the 5 steps of the Korfine enrollment process.
The landlord is requesting a security deposit
The maximum amount allowed by law is 2 months’ rent in the Walloon and Brussels Regions, and 3 months in the Flemish Region (excluding utilities).
The tenant contacts Korfine
You can apply through a real estate broker, a partner agency, or directly with Korfine. You can also apply online.
Korfine issues a Branch 26 contract
A Branch 26 life insurance policy is issued in the tenant’s name. This policy specifies the guaranteed amount, the term, and the conditions for payment.
The tenant pays the principal
The total amount of the guarantee is paid in a single lump sum. In certain cases (CPAS, social assistance), a third party may step in to advance the funds.
Delivery of the certificate to the landlord
Korfine issues an official certificate to the tenant, who forwards it to the landlord. The lease can then be signed. The guarantee becomes effective upon signing.
Pricing
How much does it cost?
The cost of a Korfine guarantee consists primarily of a one-time payment upon enrollment and the capital tied up for the entire term of the lease.
Admission Fee
A one-time subscription fee is charged on the paid-in capital at the time of subscription. There are no recurring annual premiums—the only ongoing cost is the tie-up of your capital.
Fixed Assets
The total amount of the security deposit (1, 2, or 3 months’ rent) is fully held in escrow under the insurance policy for the entire term of the lease.
Yield
The contract provides a guaranteed interest rate on the principal amount invested, subject to withholding tax. This return does not offset the opportunity cost of tying up the funds.
Objective Analysis
Advantages and Limitations of Korfine
Korfine is a recognized and legally regulated solution. It offers real benefits—as well as significant limitations that you should be aware of before signing up.
✓ What Korfine Does Well
- Legally recognized in all three Belgian regions — accepted by all landlords
- Accepted by lenders for decades — no rejections based on the product itself
- Secured capital — the lessor cannot access it unilaterally during the term of the lease
- A Clear Legal Framework at the End of a Lease — Termination by Mutual Agreement or Court Order
✗ Limits You Should Know
- Capital tied up for the entire term of the lease—you cannot use this money
- Entry fees deducted from the paid-in capital upon subscription
- Release requires the landlord’s consent —or a court order in the event of a disagreement
- Virtually no return on recent contracts—your savings aren’t working for you during the lease term
End of Lease
Vacating the Premises at the End of the Lease
At the end of the lease, the release of the Korfine capital requires an agreement between the tenant and the landlord. If an amicable agreement cannot be reached, a court order is required to release the funds.
Good to know: The Korfine release procedure involves several steps and deadlines. It’s important to be aware of them before your lease ends to avoid any delays in getting your capital back.
Comparison
garantie.be vs. Korfine: What’s the difference?
Both solutions are legally recognized in Belgium. The key difference: with garantie.be, you don’t tie up any capital.
garantie.be
NO LOCKUP- No capital to tie up
- 100% online, no appointment needed
- Certificate sent to the landlord within a few hours
- FSMA-Licensed Broker · Approved by Belgian Lenders
- Monthly premium — no lump-sum payment
Korfine (Branch 26)
- Capital is tied up for the entire term of the lease
- Subscription Entry Fees
- Legally recognized in all three regions
- Accepted by all Belgian lenders
- Termination of the lease requires the landlord’s consent or a court order
Frequently Asked Questions
FAQ — Korfine Rental Guarantee
What exactly is Korfine?
Korfine is a Belgian financial intermediary that offers rental guarantee contracts in the form of a Branch 26 life insurance policy. The tenant deposits funds into this insurance policy, which serves as a guarantee to the landlord. Korfine is neither a bank nor a direct insurer: the policy is issued by a partner insurer authorized by the FSMA.
How much does a Korfine warranty cost?
The cost consists primarily of two components: the security deposit (1 to 3 months’ rent, depending on the region and the agreement with the landlord) and a one-time sign-up fee charged at the time of enrollment. There is no recurring annual fee. Contact Korfine directly to find out the exact rates that apply to your situation.
Can I subscribe to Korfine without going through a broker?
Yes, it is possible to contact Korfine directly, without going through a real estate broker. You can sign up online or by phone. However, some partner real estate agencies offer the option to sign up directly when you sign the lease, which can simplify the administrative process.
Can a landlord refuse a Korfine guarantee?
In theory, Belgian law provides for recognized forms of rental guarantee (escrow account, insurance, etc.). A landlord cannot require a blocked bank account exclusively if you offer a legally valid alternative such as Korfine. In practice, Korfine has been accepted by the overwhelming majority of Belgian landlords for years. A refusal is very rare and potentially contestable.
What is the difference between Korfine and a frozen bank account?
Essentially, both tie up your capital for the duration of the lease. The main difference is the legal nature of the product: the blocked account is a bank deposit (savings account), while Korfine is a Branch 26 life insurance policy. In practice, for the tenant, the effect is similar: in both cases, your money is tied up, and you pay the price for this immobilization.
Related Pages
Learn more about the Korfine rental guarantee and its alternatives
Up for renewal? Avoid tying up your capital
With garantie.be, you can obtain a rental guarantee certificate without tying up a single euro. 100% online, accepted by Belgian landlords, FSMA-approved.
Start my application at no costFSMA-Licensed Broker · Compliant with Belgian Law · No Capital Locked Up