Mortgage registration is a procedure required by your bank when you take out a mortgage. It is, in reality, a guarantee of the repayment of your debts. I invite you to find out what it consists of and the corresponding conditions.
The bank must ensure that you can repay your debts and interest on time when you take out a home loan. It then requires a guarantee in the event that you are no longer able to honor your commitments.
The mortgage of one or more of your real estate therefore gives him all the rights to use or sell your property at the end of the repayment period if you have not settled your debts. Your property is therefore registered with the mortgage registry, hence the term “mortgage registration”.
Debtors usually choose to put the property they want to buy under mortgage. The procedure is much easier. However, you can opt for other assets such as a car, a boat or even the house in which you live.
However, I would like to note that the process is a little more complicated, especially if these have also been financed by loans. You must have repaid most of the credit and interest to be able to submit them to a mortgage registration.
The law sets the duration of a mortgage registration at 30 years, regardless of the duration of the loan. In other words, your property remains on the register of the mortgage registrar during this period even if you were able to pay off your debts before.
This generally presents no inconvenience for you unless you wish to sell your property. In this case, you have to go to a notary and write a deed in which the bank affirms that you have honored your commitments and that the mortgage is therefore cancelled. The procedure is chargeable.
Mortgage registration is actually subject to fees. This includes :
Banking institutions often require outstanding balance insurance when you take out a home loan. Your insurer thus reimburses part or all of your debts in the event of your death.
It also protects your family, including heirs, if you die before you can pay your creditors. I therefore advise you to take out outstanding balance insurance so that they do not take on responsibilities that could put them in difficult situations.
You can mortgage the same property several times to different lenders. In this case the law defines the order of priority of the seizure and the use or the sale of the heritage according to the date of registration of the mortgages. However, it is possible to proceed to an agreement in which the first-ranking creditor gives way to the next one.
Mortgage registration is therefore mandatory when you take out a mortgage with the bank. It lasts 30 years by law, but you have the right to request its cancellation when you have paid off all your debts. I also recommend that you take out outstanding balance insurance even if the creditor does not require it to protect your loved ones in the event of your death.