Government Loan Interest Rates: TAN and APR 2018 2019.

Goverment Agency loans

Goverment Agency loans

Loans are a very useful tool in order to be able to change one’s liquidity condition. In an era where even if you have a pension or a fixed salary, money seems never to be enough, using guaranteed systems such as Goverment Agency loans can be a great lifeline for the public worker too. Thanks to these financial products it will be possible to have immediate availability and direct access to credit.

What are Goverment Agency loans?

What are Goverment Agency loans?

The National Institute of Social Security for Public Administration Employees was created in 1993 with the merger of a number of entities. He had different duties, among the most relevant there was that concerning the collection of social security contributions and the disbursement of pensions.

It was also possible to receive small loans, with interest rates facilitated by the Goverment Agency. In 2011, the institution was incorporated into Social Security, which replaced the old institution in order to issue a series of small and medium-sized secured loans. But what are the advantages of this type of financing? And who are the subjects who can receive it?

Who can apply to Goverment Agency

Who can apply to Goverment Agency

Goverment Agency loans are accessible only to those who are enrolled in the former Goverment Agency system of Social Security and therefore a subject who is a state or public administration employee.

This type of financing is based on a fund called the Unitary Management of Credit and Social Benefits, which was established in 1996 and is now managed by Social Security. Each have through this form of guarantee are granted a series of small loans or multi-year loans that are considered subsidized for state workers. Not only is the procedure very rapid, given that it is carried out directly by the assistance body, but it is also guaranteed.

The withdrawal of the installments is in fact made directly from the subscriber’s salary or pension. If we add subsidized interest rates and rapidity in obtaining financing, we consider the importance of such a financial product. In addition, the Goverment Agency has signed over the years a series of agreements with finance and credit institutions which therefore allow access to a loan or loan, even different from that envisaged by the institution. The agreements concern not only the maximum amount that can be paid according to age, but also a particular type of interest rate. The cost of a loan is focused precisely on this element.

Before making an application for an economic amount, it will be necessary to evaluate what the cost of returning the loan is.

Interest rates: what TAG and APR are and which are the best

Interest rates: what TAG and APR are and which are the best

Whether a public body such as Goverment Agency, now Social Security, an affiliated financial company, or a credit institution, there is always an economic return behind a loan.

To simplify we can make a simple example. If you ask a credit institution for a loan of $ 1000, not only will you have to repay this sum, but there is also a cost that goes in proportion to a series of factors, such as amount, duration of the loan and number of installments. There is talk of TAN and APR.

The new European banking legislation has established that it is mandatory by law, always specify these two values ​​in the information sheets. But how to extricate oneself in the middle of the percentages that appear on billboards or on the contract when taking out a loan? Before talking about the interests of Goverment Agency loans, it is important to carefully consider these two acronyms to evaluate their value.

In a simplified way, the TAN is identified as the nominal annual rate. With this term we therefore consider the pure interest that is calculated on the loan that has been granted. In this case we mean the money that is recognized directly to the finance company for having lent money. The TAN is not paid in a single solution but according to an amortization plan that divides the value according to the different installments.

In the initial installments, the interest to the institution will always be returned first and then the remaining paid-up capital. Some loans allow the cancellation of the costs of the TAN, but not of the APR. This acronym identifies the nominal effective rate, which is a virtual reality which includes all the overall costs of the loan, including the opening, closing and costs of the file that must be faced by the applicant.

This second element is to be evaluated effectively in order to consider an advantageous loan or loan.

Interest rates for late 2018 and 2019

Below we will analyze the two types of financing envisaged with the relative reference interest rates:

  1. small loan : the loans that can be made to Social Security, Goverment Agency employees with an amount not exceeding $ 5000 are considered. As the term used says, it is a small sum of money that can be convenient in order to face immediate and unforeseen expenses, such as those of a medical nature and that will have to be returned in convenient installments of 12 months or even up to 48 months. Given the very small amount, no particular type of documentation is required to demonstrate the use of the money. The maximum amount payable and the time of refunds are directly proportional to both the age of the person and his salary. Thanks to the institution’s subsidy system, interest rates appear very favorable. The TAN is equal to 4.25% while the APR must be added 0.50% as additional administration and risk provision expenses, reaching a maximum of 5.01%.
  2. multi-year loan : in the case of loans with a higher number of years as in the case of 5 or 10-year loans, the installments can be from 60 to 120 monthly. The interest rate is equal to 3.50% while the APR varies according to the age and the amount requested. The installments cannot in any case exceed 20% of the salary amount;
  3. agreed multi-year loans : we talk about multi-year loans. In this case the Goverment Agency benefits from the agreements stipulated with finance and credit institutions, as well as banking institutions in order to grant this type of financing. The amounts can also be substantial reaching 69.000 / 75.000 $. The maximum amount is strictly linked to the age of the subject and the wages or pension received.
    In this case, based on the type of agreement, it will be possible to have a facilitated TAN and APR. In any case, the installment can never exceed 1/5 of the salary in order to guarantee the applicant the possibility of returning the loan comfortably.

The 2019 advances on Goverment Agency loan interest rates

The 2019 advances on Goverment Agency loan interest rates

In the Goverment Agency regulation published in 2018 all the specifications for the request for a small loan or a multi-year one have been listed. In the same document there is also an indication of the type of interest based on the financial product being facilitated.

The regulation would also appear unchanged for 2019, thus confirming the percentages of the nominal and effective annual rates. Even if the Cream Bank expects a rate increase expected for the beginning of the new year, those who can take advantage of an Goverment Agency loan will not see any form of modification to their facilities.

 

Loan Simulation: How to do the simulation and calculation of the online installment.

Have you finally decided to change the kitchen, or have you made the big decision to go on a trip around the world? Do you have to buy a new car or pay your first-born university master’s degree?

For these various needs, personal loans exist, which allow you to plan your expenses and extend them over time. But now you are faced with the great unknown: how can I assess which is the best loan compared to my needs? And which is the cheapest on the market?

Online quotes and branch quotes

Online quotes and branch quotes

The most classic method to obtain a simulation of the financing that is right for you consists in going directly to the branches of banks and financial institutions; the consultants will carry out an in-depth interview, during which they will bring out your needs and ask you for details on your income and your spending capacities.

They will then simulate the financing for you, to allow you to understand which installment you could take on.

A simple alternative, which you can try directly from the comfort of your sofa at home, is to use an online budget: you can find one on the websites of the individual banks and financial institutions, or use specialized sites, which will allow you to obtain different comparable simulations.

Normally you will be asked for some essential data:

  • The amount you wish is paid to you
  • The term of the loan you are thinking about
  • The purpose of the financing

You may also be asked for additional information, useful to make a first check on your ability to support the financing, such as:

  • What job do you do (permanent employee, business owner,…)
  • What is your monthly income
  • What other financial commitments do you already support and for what amount

Some advice on how to perform a loan simulation

Some advice on how to perform a loan simulation

Take carefully into consideration the amount you really need, taking into account that larger amounts obviously involve paying more interest in the total life of the loan.

Also consider the duration carefully: normally longer loans are more expensive, but they have the advantage of being more easily “bearable” than your family budget, because they correspond to lower installments.

Our advice is to carry out more simulations in any case, slightly modulating the duration or the amount, to find an installment that suits your needs.

Always consider that the total amount of financing you pay should not be more than 30% of your disposable income: this means that on the sum of your family’s wages and other income, remove any further continuous expenses (such as the payment of a rent), your loan shouldn’t weigh more than a third or so.

Some simulations of the best loans you can do below, the loan quote is in fact totally free :

How to compare two or more loan quotes in 2019?

How to compare two or more loan quotes in 2019?

Once you have obtained your estimates and verified that the amount of the installment is suitable, you must compare them to verify their convenience. You will find different economic conditions, let’s see together what they indicate and what can be most useful to you.

  1. TAN (Nominal Annual Rate) : it is the interest rate of the loan and is normally the component that weighs most on the overall cost of the operation. Many consider it essentially the “price” of the loan, but there is a more useful voice to evaluate how much it will really cost you.
  2. Preliminary costs or initial costs : they are a commission that the bank requires to start the practice and to evaluate it
  3. Installment collection costs : it is an additional commission that many banks and financial companies ask for the payment of each single installment.
  4. APR (Annual Global Effective Rate), also called ISC (Synthetic Cost Index) : it is the actual mortgage price. Summarizes, in the form of a rate, all the cost items that weigh on your loan; for this reason it is always equal to or higher than the TAN and provides a much more useful indication to be able to compare two or more proposals.

The product with the lowest APR is the most convenient of all : by summing up both the interest rate and the other expense items, it allows you a perfect and quick comparison, without having to analyze the individual components.

Finally, you can find other interesting information on loan estimates, such as any early repayment penalties (i.e. commissions that you may have to pay if you decide to close the loan before it expires, paying all the capital that you still have to repay) or the total cost of credit : this last item is the sum of all costs and all expenses to be borne by you.

It includes the sum of all the interest that you are going to pay and all the other expenses provided, giving you a very precise idea of ​​your overall outlay.

Have you finally decided to change the kitchen, or have you made the big decision to go on a trip around the world? Do you have to buy a new car or pay your first-born university master’s degree? For these various needs there are personal loans, which allow you to plan your expenses and extend them over time. But now you are faced with the great unknown: how can I assess which is the best loan compared to my needs? And which is the cheapest on the market?

Top up Postepay with Credit Card: Here’s how

Nowadays we all or almost all own a Postepay and sometimes we need to use it. It is usually used online, since it is safer to use a prepaid card to make purchases online, especially if we make purchases in sites that we do not know or trust, just to be sure that our data, but also our money remains safe, and in doing so we will avoid risks or anything else, also because, usually, on Postepay we do not keep large sums of money or the same sums of money that we will keep on a common credit card, but rather we add only the sum that we need at the time of need and that’s it, so then there could be little money left, the ones left after making the payment.

For this reason we have decided to explain how you can top up your Postepay directly from your home and using only the PC visa and your credit card, because you will top up your Postepay directly with your credit card.

How to do

How to do

Now I will explain in a very simple way how to be able to top up your Postepay with your credit card: The first thing you will have to do is to look for the visa of the mail on the internet.

Once this is done you will have to create an account by entering all your data and everything you need. Once the account has been created, you will have to click the top up item and you will only have to follow the procedure, it is the same both to use the credit card to top up the Postepay, and for the Postepay to top up another Postepay.

Other methods

Obviously there are also other methods to recharge the Postepay, and the one listed above is certainly not the easiest for those who are not good with technology, in fact other methods to be able to recharge your Postepay could be to go to an ATM and make a payment from there, or or go to a tobacconist who also refills and top up directly from there, paying a small commission.

Use Good Finance

Use Good Finance

To top up your Postepay you can also use the Good Finance website, the only thing you will have to do is to go to the Good Finance website and access your account and then you will have to follow the procedure, then choosing to use the mastercard or visa to carry out the operation.

In conclusion it can be said that Postepay is easier to use, more than you think, in fact you just have to get carried away and it will become very simple, it is also safer to use it because if our card is cloned they will only get us a little money, compared to when we are credit card cloned, which instead could take us a lot more money, so it is always good to prevent and make purchases using the prepaid card, especially online.

In any site, even on the one where we have been buying for years and that has never given us problems, because you never know, wherever they could clone us the card without us knowing anything or without realizing it and then you should go to do everything to be able to recover everything and then get our data back, not being sure that we can get our money back too, so as the saying “better safe than sorry” says in this case, so better prevent these unpleasant consequences by using Postepay, in order to be safer and therefore to be able to continue shopping online in complete freedom and serenity, without having the thought that they could steal our card data and therefore also data with money and so much more.

Nowadays we all or almost all own a Postepay and sometimes we need to use it. It is usually used online, since it is safer to use a prepaid card to make purchases online, especially if we make purchases in sites that we do not know or trust, just to be sure that our data, but also our money remains safe, and in doing so we will avoid risks or anything else, also because, usually, on Postepay we do not keep large sums of money or the same sums of money that we will keep on a common credit card, but rather we add only the sum that we need at the time of need and that’s it, so then there could be little money left, the ones left after making the payment.

For this reason we have decided to explain how you can top up your Postepay directly from your home and using only the PC visa and your credit card, because you will top up your Postepay directly with your credit card.

Mortgage Renegotiation: What is and how to renegotiate the mortgage with your bank

Banks, Mortgages

Banks, Mortgages

For those who have taken out a mortgage, its sustainability is very important. As is known, in recent years the Government Agency carried out by the Medium Centrum Bank, led by Mario Draghi, has produced a significant reduction in interest rates, which have even gone below zero.

The new triggered situation had significant repercussions on a series of contracts relating to financial products that had been stipulated in what we could define as another historical epoch.

Among the products in question there are also mortgages, contracts perhaps before the crisis of 2008, the one that followed the bursting of the Subprime mortgage bubble or in the years immediately following. Years during which interest rates were significantly higher, with obvious repercussions on mortgage repayment plans.

Precisely in order to remedy a completely new situation, many borrowers, in order not to find themselves in difficulty due to the considerable variations in interest rates, have started to look around for a solution. For example, identifying it in the so-called renegotiation of the mortgage: what is it?

What is mortgage renegotiation and why should it be done?

What is mortgage renegotiation and why should it be done?

By renegotiation of the loan is meant the modification made to the conditions of the same, agreed with the lender, whether it is a banking or financial institution. This increasingly widespread practice can be used to remedy a completely new situation on the financial markets that can cause damage if the contract originally entered into is maintained.

Among the cases that can lead to a similar decision, we should mention in particular:

  • a significant reduction in fundamental parameters such as the spread and the interest rate;
  • the desire to perhaps extend the duration of the repayment plan in order to make the monthly installment to be paid to the provider more light and therefore more sustainable;
  • the desire to change the rate, perhaps taking it from fixed to variable or vice versa, precisely in order to intercept the evident change in market conditions.

Finally, the renegotiation will lead to the drafting of a new contract which will take account of the needs envisaged by the user.
To adhere to the proposed change, the bank (or the financial company) in turn requests that the existence of elements such as to alter the relationship that was originally established is proved, making it in fact difficult for the customer to support.

How does mortgage renegotiation work?

How does mortgage renegotiation work?

The renegotiation of the mortgage provides for a fairly simple procedural process, which will end with the launch of a private agreement, which assumes the official form of a new agreement between the parties that originally signed the contract.

It should also be stressed that the request to activate the procedure ultimately represents a real formality. In fact, it is sufficient to send a registered return ticket to the provider in which the parts of the contract to be discussed will be indicated.

At this point it is necessary to specify forcefully how an institution of this kind presupposes an agreement between the parties, since none of the signatories of the original agreement can proceed to a unilateral redefinition of the conditions envisaged by it.

In this regard, it should also be remembered that in fact the lending institution is usually not very oriented to adhere to a proposal for renegotiation of the mortgage.

A typical case in which it has to face a bad game is the suspension of the payment of the installments by the contractor. In such an eventuality a new agreement can be said to be part of the natural order of things. It can also take place through extensions of payments, which allow the borrower to catch up with the payments.

Better renegotiation or replacement?

Better renegotiation or replacement?

Very often there is a tendency to confuse renegotiation with the replacement of the mortgage. It should therefore be stressed that it is absolutely not the same thing: if in the case of renegotiation there are no additional costs, the replacement of the loan with a new one stipulated with another banking institution entails a series of costs related to its activation, for example the expenses for the preliminary investigation, the appraisal, the cancellation of the old mortgage and the launch of the new one.

Furthermore, if you intend to proceed with the scrapping of the mortgage and replace it with a new one, the sum can also be discussed and integrated again, based on renewed needs.

There is also an additional possibility, the one proposed by the subrogation, namely the replacement of the old mortgage with one turned on for the remaining sum with a second bank.

In this case, in fact, you can check better conditions and it does not become necessary to cancel the old mortgage and prepare a new one, with the cost savings that can ensue. In this case, however, you cannot ask for additional liquidity. According to experts, the surrogate is currently the most convenient solution, so much so that it is widely practiced by our compatriots.

What are the advantages of the mortgage renegotiation?

What are the advantages of the mortgage renegotiation?

From what has been said so far, it is easy to understand how to renegotiate one’s mortgage has considerable advantages in the event of the need to propose it to the counterparty. Thanks to it, in fact, it is possible to obtain new conditions capable of meeting not only the market conditions, but also the supervening needs of the borrower himself. Among the main advantages, it should be remembered:

  • the failure to pay off the loan, which would require the payment of new expenses, including that relating to the activation of the notary;
  • the maintenance of the tax bonuses that had been obtained upon the signing of the first contract;
  • the lack of additional expenses or taxes such as to weigh on the new agreement.

Mortgage renegotiation: advances 2019

Considering how the situation of the financial markets is constantly evolving, our advice is certainly to follow events with some attention. In particular, during 2019, the situation could change quite pronouncedly.

This change could be caused in particular by the planned end of Government Agency, or the support of the Medium Centrum Bank to the public debt of the dollarzone countries. In practice it is a program for the purchase of sovereign bonds and the sale of money to banks, with the specific task of supporting the so-called real economy (families and businesses).

Precisely the presence of Government Agency has allowed the dollarzone to enjoy extremely low interest rates over the past few years, a condition that has had a significant impact on financial products, starting with mortgages.

It is therefore advisable to monitor carefully what could happen in December, the month in which the program should expire. According to insiders, interest rates could rise, which would put a strain on the contracts signed, perhaps thinking that they would remain at very low levels for many years.

The new situation could in particular push many borrowers to reconsider the contract signed with the bank, perhaps going from a variable rate to a fixed rate or vice versa. In order to avoid that a renegotiation of this kind translates into damage, it is therefore necessary to try to better understand the possible developments of the economy over the next few years.

 

Government Agency Loan Simulation: What it is, installment calculation and estimate

Simple and immediate Government Agency loans

Simple and immediate Government Agency loans

Even if you have a pension or salary, having access to credit for greater liquidity is something very important. In a historical and economic reality like the one we live in, money seems to never be enough. Life is constantly evolving with the creation of new consumer goods and innovations that require economic expenditure.

Furthermore, as the years go by, sudden situations such as health problems, accidents or exceptional events can occur. For those who are a civil servant and public administration, there are a series of advantages thanks to the Government Agency loans in order to access a series of guaranteed loans.

But what does this funding consist of? How can you really understand if such a loan is beneficial? The simulation of the Government Agency loan, with the calculation of the installment and the possible estimate, can be an excellent system in order to evaluate the different offers that are proposed by this assistance agency.

What are the Government Agency loans: Who can be entitled to them?

What are the Government Agency loans: Who can be entitled to them?

Government Agency is the acronym for identifying the National Social Security and Assistance Institute for Public Administration Employees. His duties were different, but among these he performed that of paying salaries and accumulating pension contributions.

In addition, those who were enrolled in Government Agency could take advantage of a series of sums that were made available every year for small loans. In 2011 the social security institution was incorporated into the Social Institute which was entrusted with the task of issuing forms of loans which are managed by the fund for the autonomous management of credit services.

In order to receive funding from Government Agency, Social Institute, it will therefore be necessary not only to be registered with the Social Institute ex Government Agency, but also to join the fund for credit management. In addition, the institution has made a series of agreements with various banking and financial institutions. Thanks to these, it will be possible to access greater liquidity at subsidized interest rates in a very simple way.

Once an application is made, the social security institution will directly provide the relative documentation to the lenders, in order to obtain the required loan. But what are the types of credit that can be accessed?

What are the loans: The types guaranteed

What are the loans: The types guaranteed

The loans provided for by the Government Agency are divided according to the amount to be disbursed and the number of installments necessary for the purpose of repaying the loan. The financial products that are issued by Government Agency, Social Institute are the following:

  • small loan: as the name implies, it is a loan of a very limited amount and which is repaid in installments ranging from 12 months to 48. The maximum amount that can be requested is around $ 5000. This type of loan was born with the idea of ​​intervening in case of immediate need by a state employee.
    In fact, in the event of illness or unforeseen expenses, the request can be made which will be fulfilled in a short time. Although the institution has a number of advantages, not all small loans are paid out. In fact, the maximum sum is always proportional to the subject’s perceived salary.
    The installments that must not exceed 48 months in the case of the small loan must be equal to a maximum of 20% of that received in the payroll in the pension plan. Furthermore, for those who have protested, are reported as bad payers, or already have a loan, it may be more difficult to obtain authorization from the institution for a small loan;
  • multi-year loan: it is a loan that can be longer than 48 months and has a duration of 5-10 years. In this case the amounts are higher and are established from time to time based on the request and in proportion to the employee’s salary.
    It should not be forgotten that the installment into which the repayment of interest and capital will be divided must never exceed 1/5 of the value of the salary received.
    The law allows in this way, to the civil servant, to return the money comfortably without burdening the family balance;
  • affiliated loans: they are part of multi-year loans, and foresee sums that can reach up to 60,000 / 70,000 $. This is possible thanks to the agreements entered into by the Government Agency with financial companies and banking institutions.
    The loan is in fact guaranteed thanks to the salary or pension of the worker, thus allowing access to money at a very subsidized interest rate.

The interest rates and the advantages of the agreements: APR and TAG

The interest rates and the advantages of the agreements: APR and TAG

Before considering an example of a simulation, it is important to understand what is meant by the interest rate. There are actually two rates. They can be fixed or variable. This means that in the first case, the interest will remain constant for the whole time of financing.

In the second it will be subject to the economic trend with the possibility of decreasing or increasing:

  • TAN: nominal interest rate. In a simplified way, it consists of the gain that is acquired by the lender. Almost always in the first installments the interest rate is returned first and then the capital received;
  • APR: it is the effective annual rate. It includes all the related costs that are expected to make the loan, from those of the preliminary investigation to the closing of the file. If you want to consider whether your loan is advantageous you must be very careful with the APR.

An example of simulation Government Agency loan: Calculation of installment and estimate

An example of simulation Government Agency loan: Calculation of installment and estimate

The Government Agency, Social Institute website provides members with a simulation system to independently verify the various possibilities of accessing credit. The format is very simple and provides a calculation of the installments and a quote based on different parameters: specific amount, ideal installment.

In the first case, the hypothetical ideal sum that you would like to receive is introduced and the program proposes the different types of loan envisaged. The type of loan, the duration and the reference rate with the gross amount will appear in the table. Once you have selected the one you prefer, there will be specifications including interest rates, costs and installments.

If, on the other hand, you want to pay a fixed amount, which cannot exceed 20% of the salary, the system will perform the simulation starting from this value. Here are two simulation examples, for small loans and multi-year loans:

  • gross loan amounting to $ 1300. The installments will be 12 of 110.80 $ with a rate of 4.25%. The interest amount will be $ 6.75 and the administrative fee will be $ 6.50, while the guarantee fund will be $ 2.21. The net funded amount will be $ 1284.54.
  • multi-year loan for an employee who requests a loan with a monthly salary of $ 1300. The installments cannot exceed $ 215.93, corresponding to 1/5 of the salary. A 5-year multi-year loan will therefore be applied with 60 monthly installments. The net amount granted will be 11,883.57. The one to be returned instead, equal to $ 12,955.79. The interest rate is equal to 3.50%.

Government Agency loan: The advances of 2019

Government Agency loan: The advances of 2019

The simulation system for Government Agency loans is a very useful tool in order to know in real time the maximum amount that can be requested. For 2019 everything will remain unchanged, given the functionality and simplicity of the procedure.

Mortgage consolidation – Guide

 

Do you have many financial liabilities and their total amount is slowly beginning to overwhelm you? To catch your breath and reduce the scale of your monthly fees, you may want to consider getting a consolidation loan. Contrary to appearances, you can choose not only the cash one. Another option is consolidation under a mortgage. What is the solution? When does it pay off the most? What criteria must be met to be able to use it? Here’s everything you need to know about it.

Consolidation or what?

Consolidation or what?

Let’s start by explaining the key concepts that you need to know to be able to consider using financial instruments available on the market. The first key point: what is consolidation?

It’s a solution that you can consider if you’ve made several different financial commitments. Bank loan, installment for a car, payday loan, credit card limit, holiday loan … these are just a few of them, which may require you to pay a considerable sum.

Consolidation is, simply put, a combination of them under one commitment. In practice, it is about taking out a bank or non-bank loan that will cover previously taken loans, payday loans, etc. After paying for them, you cease to have obligations to previous lenders, and in return you have one, slightly higher than the sum of those. In effect:

  • you pay one simple installment,
  • you close previous commitments,
  • you can usually spread out payments over a longer period of time, which translates into a lower monthly installment.

Therefore, repayment takes place more calmly, without straining your home budget.

Consolidation into mortgage or cash?

Consolidation into mortgage or cash?

The second important issue is choosing the form of taking a consolidation loan. If you use the services of experienced brokers, you can expect a cash or mortgage option. How are they different?

  • The cash loan usually amounts to a lower amount and the repayment time is shorter – all due to the fact that you need solid security confirming your financial possibilities. And it depends primarily on the amount of monthly revenues and expenses that rest on you. It should also be remembered that on the other hand the cash version of the consolidation loan requires less formalities – sometimes all you need is your ID card, income statement and verification at BIK.
  • Consolidation under a mortgage, as the name implies, is granted against the property of the borrower. Such a guarantee, whose value is usually at least several hundred thousand dollars, means that the loan amount may be higher and the repayment time – longer. You can also expect lower interest rates or a preferential bank commission. It also happens that this form of consolidation is easier to obtain – it involves less risk for a bank or other lending institution. However, all formalities may take longer.

So, as you can see, consolidation under a mortgage can be a particularly good option when:

  • the total amount to which the current liabilities are based is very high,
  • you expect the repayment to be spread over many years – so that the monthly installment is relatively low,
  • you want to increase your chances of getting a loan – a good argument especially for “difficult loans”.

There is of course one more condition that you must meet: you must have property that you can use as collateral.

What conditions must be met to lead to consolidation under mortgage?

What conditions must be met to lead to consolidation under mortgage?

The basis is the already mentioned possession of real estate that meets certain criteria. What is going on? A property that can pledge such a consolidation loan must:

  • be your property – if you are only a co-owner, the other owners must agree to charge the mortgage or it will be necessary to divide the property (separation of separate property) – it all depends on the conditions set by individual financial institutions,
  • have a “free mortgage” – ie no other entry on the mortgage can be entered in the land and mortgage register, nor can it be encumbered with other easements.

The procedure for obtaining a consolidation mortgage is similar to obtaining a “standard” mortgage loan. So it will be necessary, among others determining the value of the property by an appraiser, as well as determining the detailed repayment terms.

If you want the consolidation under mortgage to be carried out efficiently and the terms of the loan you have received, then use the help of experts. Thanks to this, you will be sure that you will settle your existing obligations and repayment of the new one will be simple, convenient and the cheapest possible. In the case of consolidation under a mortgage, this is particularly important because it usually applies to large amounts and is spread over a dozen or even several dozen years. That’s why you can’t afford even the slightest compromise.

Mortgage Loan subrogation: who is it for?

Mortgage loan subrogation: who it is for

Mortgage subrogation: who it is for

The mortgage subrogation, also called simply surrogate, defines a simplified intervention that allows the borrower to transfer his / her loan to a new credit institution thus enjoying better contractual conditions. An operation indicated to take advantage of positive market conditions.

The applicant does not incur any additional burden or cost and the starting bank does not have to express his consent for the debtor to obtain the subrogation. Instead, it is at the discretion of the new provider to accept the subrogation request.

The old mortgage is not canceled but transferred , just as the amount corresponds to the residual sum of the starting loan. The duration and rate of the loan may instead change. Hence the potential convenience of the operation.

There are two types of surrogate : bilateral and trilateral surrogate . In the first case, the involvement of the new bank, which we will call the surrogate body, of the debtor and a separate and subsequent deed of receipt is envisaged.

From a practical point of view, this means that we will have the signing of a loan contract intended for the subrogation (document that reports all the new economic conditions) and a unilateral deed of receipt . The latter corresponds to a declaration by the starting bank that ascertains the repayment of the mortgage thanks to the subrogation and the non-cancellation of the mortgage. The deed of receipt is defined before a notary, but does not require the debtor to be present.

Mortgage subrogation: trilateral subrogation

Mortgage subrogation: trilateral subrogation

The trilateral substitute is more complex. As it is easy to understand, in addition to the surrogate bank and the debtor, the surrogate bank is also directly involved. In this case, a single notarial deed is defined which must contain:

  • the new mortgage subrogation contract (obviously including all the new conditions defined between the surrogate entity and the borrower)
  • the receipt of the repayment of the original loan
  • the commitment not to cancel the departure mortgage .

Alternative solutions to the surrogate

Alternative solutions to the surrogate

An alternative to the subrogation is the replacement of the mortgage . In this case, the loan is not transferred to a new credit institution but paid off via a credit line granted by another institution. The main disadvantage lies in the costs: the legal costs (appraisal or investigation) are borne by the customer. While as a plus we have the opportunity to take advantage of a greater number of financial products.

If, on the other hand, you do not want to change banks, you may prefer renegotiation . The new loan conditions are defined between the customer and the bank without involving any third party. The borrower can submit to the bank the estimates drawn up by the competitors to make a change in the conditions of the loan. The lender often chooses not to lose the customer, who can always appeal to the surrogate, and grants cheaper rates.

The mortgage subrogation, also called simply subrogation, defines a simplified intervention that allows the borrower to transfer his / her loan to a new credit institution thus enjoying better contractual conditions. An operation indicated to take advantage of positive market conditions.

The applicant does not incur any additional burden or cost and the starting bank does not have to express his consent for the debtor to obtain the subrogation. Instead, it is at the discretion of the new provider to accept the subrogation request.

The old mortgage is not canceled but transferred , just as the amount corresponds to the residual sum of the starting loan. The duration and rate of the loan may instead change. Hence the potential convenience of the operation.

There are two types of surrogate : bilateral and trilateral surrogate . In the first case, the involvement of the new bank, which we will call the surrogate body, of the debtor and a separate and subsequent deed of receipt is envisaged.

From a practical point of view, this means that we will have the signing of a loan contract intended for the subrogation (document that reports all the new economic conditions) and a unilateral deed of receipt . The latter corresponds to a declaration by the starting bank that ascertains the repayment of the mortgage thanks to the subrogation and the non-cancellation of the mortgage. The deed of receipt is defined before a notary, but does not require the debtor to be present.

Mortgage subrogation: trilateral subrogation

Mortgage subrogation: trilateral subrogation

The trilateral substitute is more complex. As it is easy to understand, in addition to the surrogate bank and the debtor, the surrogate bank is also directly involved. In this case, a single notarial deed is defined which must contain:

  • the new mortgage subrogation contract (obviously including all the new conditions defined between the surrogate entity and the borrower)
  • the receipt of the repayment of the original loan
  • the commitment not to cancel the departure mortgage .

Change mortgage at no cost

Change mortgage at no cost

The Subrogation of the Mortgage was regulated by the Bersani law (Law 40/2007) and subsequently by the Financial Law of 2008.

This procedure is also known more simply as mortgage portability, so when you hear about mortgage subrogation, also refer to the portability of the mortgage.

Mortgage subrogation or portability

Mortgage subrogation or portability

The subrogation of the mortgage, also known as portability, consists in the transfer to a new bank of the credit line used for the purchase or renovation of the house. This is an intervention that allows the modification of the contractual conditions , at least as regards rates and duration, while the mortgage is unchanged: a simple note is made which determines the new beneficiary of the mortgage, or the succeeding bank.

We must specify that, from a technical point of view, the subrogation is not exactly a “shift” of the debt. Only the mortgage changes, which will be enjoyed by the new credit institution as collateral. The loan, on the other hand, will be subject to early repayment and the activation of a new loan will take place at the surrogate bank (leaving the remaining amount unchanged).

Compare mortgages for renegotiation

Compare mortgages for renegotiation

With the introduction of the so-called Bersani Law (40/2007), the surrogate has excluded any cost for the customer. The transfer of the mortgage thanks to the subrogation is therefore at no cost , reason that made this institution so requested among the borrowers. The real limit of the portability of the loan is represented by the size of the loan.

The residual amount cannot be subject to change . The user has the option, in agreement with the incoming bank, to rewrite the type of rate (including the spread set by the credit institution) and / or the duration. Basically the borrower can get a more sustainable monthly installment and therefore have a cheaper financing.

Mortgage rate renegotiation

Mortgage rate renegotiation

There are three steps to follow to proceed with the mortgage subrogation:

  1. find a bank willing to grant the subrogation. This will contact the home bank to find out the amount of the residual debt and define a date for carrying out the intervention;
  2. within a maximum of ten working days, the starting bank announces the residual debt to the new institution, and agrees for the day on which the subrogation will be carried out ;
  3. the new bank completes the subrogation with a single deed, consisting of: contract of the new loan , payment receipt (the document certifying the early repayment of the previous loan), consent to the subrogation and modification of the mortgage.

If the installment of your loan is no longer competitive or simply too expensive, the solution is the subrogation of the mortgage .