{"id":20392,"date":"2025-12-15T16:39:05","date_gmt":"2025-12-15T15:39:05","guid":{"rendered":"https:\/\/garantie.be\/korfine-rental-guarantee\/operation\/"},"modified":"2026-10-01T12:13:05","modified_gmt":"2026-10-01T10:13:05","slug":"operation","status":"publish","type":"page","link":"https:\/\/garantie.be\/en\/korfine-rental-guarantee\/operation\/","title":{"rendered":"How the Korfine rental guarantee works"},"content":{"rendered":"\n\n
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Korfine rental guarantee<\/p>\n

\n Korfine Rental Guarantee: How It Really Works<\/span>\n <\/h1>\n

\n Korfine is one of the most widely used rental guarantee solutions in Belgium. Here’s what you need to know before signing up\u2014or if you’re already a customer. \n <\/p>\n

\n \n Discover the ad-free alternative\n <\/line><\/polyline><\/svg>\n <\/a>\n Learn more about Korfine<\/a>\n <\/div>\n
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\n <\/polyline><\/svg>\n Class 26: Life Insurance\n <\/div>\n
\n <\/polyline><\/svg>\n Tied-up capital\n <\/div>\n
\n <\/polyline><\/svg>\n FSMA-Approved\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n
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Definition<\/p>\n

What is Korfine?<\/h2>\n

\n 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. \n <\/p>\n

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Financial Product<\/p>\n

Branch 26 life insurance<\/strong> \u2014not a bank account. Korfine is an insurance policy, not a deposit. This distinction is important from a tax and legal standpoint. <\/p>\n <\/div>\n\n

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Capital Lock-up<\/p>\n

Capital is locked in for the duration of the rental lease<\/strong> \u2014the amount paid is tied up until the end of the rental lease. You cannot access it while the rental lease is in effect. <\/p>\n <\/div>\n\n

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How It Works<\/p>\n

Managed by a partner insurer<\/strong> \u2014 Korfine markets the product, but the life insurance policy is issued and managed by a licensed insurer. Korfine acts as an intermediary. <\/p>\n <\/div>\n\n

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Legal Coverage<\/p>\n

Approved in all three Belgian regions<\/strong> \u2014Korfine is valid in the Walloon Region, the Brussels Region, and the Flemish Region. The maximum amounts vary by region. <\/p>\n <\/div>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

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Process<\/p>\n

Subscription: How It Works<\/h2>\n

\n From the landlord’s request to the issuance of the certificate\u2014here are the 5 steps of the Korfine enrollment process.\n <\/p>\n

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1<\/div>\n

The landlord is requesting a security deposit<\/h3>\n

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).<\/p>\n <\/div>\n\n

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The tenant contacts Korfine<\/h3>\n

You can apply through a real estate broker, a partner agency, or directly with Korfine. You can also apply online. <\/p>\n <\/div>\n\n

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3<\/div>\n

Korfine issues a Branch 26 contract<\/h3>\n

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. <\/p>\n <\/div>\n\n

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The tenant pays the principal<\/h3>\n

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. <\/p>\n <\/div>\n\n

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Delivery of the certificate to the landlord<\/h3>\n

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. <\/p>\n <\/div>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

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Pricing<\/p>\n

How much does it cost?<\/h2>\n

\n 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.\n <\/p>\n

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Admission Fee<\/p>\n

A one-time subscription fee<\/strong> is charged on the paid-in capital at the time of subscription. There are no recurring annual premiums\u2014the only ongoing cost is the tie-up of your capital. <\/p>\n <\/div>\n\n

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Fixed Assets<\/p>\n

The total amount of the security deposit (1, 2, or 3 months’ rent) is fully held in escrow<\/strong> under the insurance policy for the entire term of the lease.<\/p>\n <\/div>\n\n

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Yield<\/p>\n

The contract provides a guaranteed interest rate<\/strong> on the principal amount invested, subject to withholding tax. This return does not offset the opportunity cost of tying up the funds. <\/p>\n <\/div>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

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Objective Analysis<\/p>\n

Advantages and Limitations of Korfine<\/h2>\n

\n Korfine is a recognized and legally regulated solution. It offers real benefits\u2014as well as significant limitations that you should be aware of before signing up. \n <\/p>\n

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\u2713 What Korfine Does Well<\/p>\n