A mortgage loan, as its name suggests, is a loan backed by a mortgage, that is to say the right that the lender has on a particular property to cover itself in the event that the borrower would be unable to meet its repayment deadlines. The most frequent case of such a credit is actually that of the financing of a real estate project, in which case the candidate for the mortgage mortgages the real estate for which he wishes the financing. Otherwise, it is also possible to take out a mortgage as part of a cash loan. Be that as it may, before opting for this solution, regardless of the reasons motivating this decision, it is advisable to measure the pros and cons upstream, since a mortgage loan has its advantages and disadvantages.
A mortgage materializes in the form of an agreement between the creditor (the banking establishment) and the borrower whose registration is carried out with a notary and is the subject of an authentic deed . This legal act thus mentions in black and white:
It should be noted that the asset against which the credit is backed can be either real estate or the pledge of a financial product , the most common of which is life insurance. Against this guarantee, the borrower can generally claim a loan, the amount of which represents 50% to 80% of the appraised value of the mortgaged property. This mortgage ratio can even approach 100%, or even more, depending on the bank granting the loan.
Upon validation of the mortgage, the creditor has a right to the mortgaged property until the date on which the contract ends. It follows that in the event of default by the borrower during this period of time, that is to say in the event that he is unable to meet his repayment deadlines, the creditor reserves the right to right to dispossess him of his financial asset or real estate. In the last case, an auction of the property can be decided so that the creditor can be reimbursed. If this sale does not cover all of the debt, the borrower remains liable for the difference.
A mortgage loan , like the one that can be taken out with la maisondescreditsreunis.com, is a loan secured by one or more assets of which the borrower is of course the owner. It can thus be used to finance the construction or acquisition of real estate, of any kind whatsoever.
As I said earlier, this type of loan allows you to obtain cash which may or may not be affected, depending on the lender. Even if you have significant assets, it must be admitted that having cash available immediately is still not easy.
The mortgage loan undoubtedly comes with many advantages. Among these, we mainly cite the fact that it allows individuals and professionals to finance a real estate project, whatever its size. Borrowers can then claim a high debt capacity , even in complex situations, for example:
And for good reason, the possibility of considering a mortgage constitutes for the creditor a solid argument in favor of the validation of the loan file . In addition, this type of loan is also a better solution to make your real estate assets “liquid” without selling it. You can thus continue to build up your assets by embarking on a new acquisition that you would certainly not have been able to finance with a conventional loan.
We can add to all this the fact that the average repayment period of a loan with mortgage guarantee is longer than a conventional loan . This can even go up to 30 years. This type of loan also comes with particularly flexible repayment terms. Thus, its reimbursement can be made in fine or depreciable. And finally, as soon as the mortgage loan is completely repaid, the mortgage is automatically lifted by the creditor.
Although the mortgage is a form of security par excellence, both for creditors and borrowers, by opting for this solution, you are still embarking on a potentially risky adventure. Until the creditor puts an end to it by means of a release , the borrower can at any time be dispossessed of the real estate, financial asset and other types of property that he has placed in mortgage. Throughout the contract, it could face risks that could lead to its default. In such a case, he would see his mortgaged property seized, then put up for sale for the benefit of the lender, without being able to oppose it.
The subscription of a mortgage loan being rigorously formalized, the fact that the agreement between the creditor and the borrower must be the subject of an authentic act adds other constraints to the acquisition process . Beyond the emolument of the notary, the borrower must plan for additional items of expenditure which are likely to weigh relatively heavily on his budget: ancillary costs, the curator’s salary and the land registration tax.
In addition, the possible lifting of the mortgage generates costs which the purchaser must pay. These costs apply more specifically if you decide to resell your property before the loan is fully repaid, or if you have opted for a prepayment . These costs are calculated on the basis of the amount of capital borrowed, increased by 20%. For example, for €200,000 borrowed, the mortgage will be €240,000. The costs that the borrower must pay once the mortgage is lifted will represent between 0.3% and 0.6% of €240,000.
A mortgage loan, although particularly advantageous, is nevertheless costly and relatively risky. It is advisable to turn to professionals in the sector for information before embarking on this operation.