Mortgage transfer: what is it, how much does it cost and is now a good time?
Category: Mortgages
Do you know the term mortgage subrogation? It occurs when the debtor or the financial entity of a mortgage loan is replaced by another debtor or another financial entity.
Perhaps it will be better understood if we explain the two types that exist:
Subrogation due to change of creditor: it is the most common. The debtor wants to change banks to improve the conditions of his mortgage. The most common reasons are to improve interest rates, eliminate linked products or make some adjustment to return terms.
Subrogation due to change of debtor: this occurs when a new buyer is subrogated to the mortgage of the old tenant, with prior acceptance by the banking entity.
How much does it cost to subrogate a mortgage?:
Among the expenses that surrogacy entails are:
- Subrogation commission
- Notary
- Management
- Registration in the Property Registry
- It is common for the new bank to request an appraisal of the home, an expense borne by the debtor.
Does it only benefit variable mortgages?
Although a low Euribor positively and directly affects borrowers with a variable mortgage, those who have a fixed mortgage can also take advantage of it through subrogation.
This is because although fixed mortgages do not vary the interest based on the fluctuation of the Euribor, this does condition the mortgage market as a whole. That is, to be more competitive against the variables, they have to position them with low interest rates. Currently, financial conditions are very attractive for clients, making it a good time to close a transaction of this type.
