How does the Social Institute mortgage substitute work at favorable conditions
The mortgage is an economic commitment that lasts over time even for decades, with the passing of the years, however, the conditions of the financing may be inconvenient compared to the market averages. In these cases, it is possible to resort to the subrogation of the mortgage, an operation that allows you to transfer the loan to a new bank and modify its conditions at no cost. Public employees and pensioners have the opportunity to benefit from the mortgage subrogation with Social Institute on favorable terms.
The mortgage subrogation with Social Institute is the subrogation operation through which the loan is transferred from the original bank to Social Institute, which extinguishes the loan with the credit institution and takes over the residual debt. The debtor then reimburses the sum still due to the social security institution at a subsidized interest rate, which can be fixed or variable.
In the first case we have a Tan defined the loan to value method (i.e. based on the ratio between the value of the loan and that of the property). By opting for a variable rate mortgage, the Tan is equal to the 6-month payment installment, increased by 200 basis points. For the definition of the rate, reference is made to the paymnet installment value calculated over 360 days, recorded on December 31 or June 30 of the previous half year.
In addition to the benefit of a subsidized rate, the Social Institute ex Government Agency mortgage substitute allows you to extend the amortization. The loans thus subscribed follow the same conditions as the Social Institute mortgages ex Government Agency first home. They can have a duration of 10, 15, 20, 25 or 30 years.
How to submit the mortgage application Social Institute subrogates
The subrogation request must be sent electronically within the time windows established by Social Institute. The application can be sent from 1st to 10th January, from 1st to 10th May and from 1st to 10th September. A guide explaining the procedures for completing the application is available on the official Social Institute website.
However, it should be noted that the mortgage subrogation with Social Institute is accessible only if the original loan was subscribed for the purposes admitted by the social security institution. These include the purchase, construction, expansion and/or completion of land owned by the home, as well as the purchase or construction of a garage. The subrogation can also be requested for loans taken out for the renovation or maintenance of the home.
The subrogation applications are examined in the same order as those relating to the first home loan and contribute in the same way to the formation of a possible ranking.