The repurchase of mortgage has many advantages for both the borrower and the lending bank. It is still necessary to find an establishment which accepts to finance you.
Home loan repurchase: the most advantageous
Among the different types of credit buyouts that exist, it is certainly the only one that remains the most interesting for both parties.
Indeed, in the event of non-payment, the bank is guaranteed to recover the sums loaned, since it can always initiate a procedure for seizure of the property or call in the suretyship. Above all, the operation seems less risky, knowing that the owners do not represent more than 20% of cases of over-indebtedness.
Other advantages of buying back mortgage:
- The financing carries up to 90% of the value of the property (rarely 100%).
- The repayment term can be up to 30 years, which is particularly suitable for extreme cases.
- Interest rates, whether fixed or adjustable, capped or not, are among the most attractive on the market.
- Possibility of financing a major project and even having extra cash to pay off your various debts.
- The age limit for taking out a mortgage loan repayment is set at 90 years.
- It is open to people registered with the FICP.
- The granting conditions are less restrictive.
The different types of mortgage repurchase
There are two types of mortgage consolidation: mortgage buyout and bonded loan buyout. Note that the latter is intended exclusively for the best candidates (no banking history or previous restructuring, among others).
The repurchase of mortgage credit
It is the most widespread solution. The granting conditions are generally more flexible. It is granted under the condition of the mortgage of the property, either in the first useful rank, or in second rank if the situation so requires.
In principle, the conventional mortgage replaces that established by the bank which granted the mortgage or ranks immediately after the first in order to avoid release costs.
The buyback of bonded credit
This formula, for its part, involves an establishment specializing in mortgage loan guarantees. In the event of arrears, it is this organization which is responsible for reimbursing unpaid installments at the bank.
The cost of a deposit differs from one establishment to another and includes participation in the Mutual Guarantee Fund (FMG). Anyway, the property must not be subject to a mortgage registration or PPD (privilege lender of money) to make room for the bonding establishment in the event of a disaster.