The repurchase of real estate loans makes it possible to renegotiate the rate, to lengthen the duration, to have lower repayments and to finance a new project. This repurchase makes it possible to group together mortgage loans as well as consumer credits.
The mortgage buyout is the most common loan buyout. Outstanding mortgage loans must represent more than 60% of the total amount of outstanding debts.
The borrower must be able to present collateral (mortgage or surety) in order to guarantee the loan from the bank. There is no change in the bank. Your Good Finance broker supports you to understand the challenges of grouping mortgage loans.
The repurchase of mortgage
The repurchase of mortgage can relate only to the mortgage one will be on a renegotiation operation of rate. Or the repurchase of mortgage can combine several credits: mortgage, consumer loan, car loan, revolving credit, bank overdraft and of course the new project.
In all cases, the share of real estate outstandings must be greater than or equal to 60% of the total amount of the other loans to be taken over. The principle is simple: one of our financial partners buys back all the credits that you hold from other financial organizations or other banks.
After the loan repurchase, you have only one loan and one monthly payment. It is a tailor-made financial transaction perfectly suited to borrowers who wish to redeem their loans and who own their main residence (a secondary or rental residence). The repurchase of real estate credit is a grouping of credit which is guaranteed by taking of mortgage on the real estate. Borrowers can buy back home loans without paying off any other loans.
The advantages of buying a mortgage:
- Allow grouping the credits with a higher total loan amount.
- Decrease your monthly credit payments.
- Carry out your work.
- Fund new projects.
- Reassure our banking partners who are more tolerant with a loan offer with a mortgage guarantee (it’s a kind of insurance for them).
- Keep your bank accounts in your current bank.
The mortgage guarantee presents a very advantageous solution for the borrower: consolidating your credits allows you to have a single credit with a lower monthly payment and over a longer duration and a more attractive rate.
Characteristics of the repurchase of a mortgage
Do you want to redeem your home loans? so don’t wait For the constitution of a home loan repurchase file we must take into account the estimate of the value of your property, your current credits, and your income.
- Your credit repurchase can amount up to 90% of the value of the mortgaged property.
- You can subscribe to a mortgage loan as soon as the total amount of your credits to be redeemed is $ 22,000.
- The duration of your credit is a minimum of 5 years and a maximum of 35 years.
- The loan must be finished before your 95th birthday.
- Your income must be in line with the redemption amount.
- The lender will ask you for a mortgage guarantee to guarantee its credit.
In the context of credit with a mortgage, the intervention of the notary is essential since he makes the early repayments of your credits with organizations and informs you of the outcome of the procedure, conversely, consumer credit does not need a notary.
All the notarial costs linked to the repurchase of a mortgage are included in the total amount of the loan. It takes a period of 6 to 8 weeks for the establishment of your file and the release of funds at the notary.
How to buy back your mortgage?
In order to get a free and quick answer on the feasibility of your mortgage repurchase, make a simulation on our site. We very quickly communicate the interest rate at which the borrower can claim for his repurchase of credit. The rate of credit in fixed-rate (in 2019) depends on the duration of your loan. Knowing the new monthly payment for your future loan buy-back is essential before sending us your file.
The cost of insurance for your credit repurchase sent to you by email as well as the list of parts. All you have to do is send us your documents. Your file is studied upon receipt by a dedicated analyst and forwarded to our partner for validation and editing of the loan offer.
The funds are released to the notary and the latter is responsible for making the reimbursement by transfer to the credit organizations. The new monthly repurchase of the mortgage is implemented at least one month after the release of funds. Loan buy-back insurance is optional.
Repurchase of mortgage, consequences
The grouping of mortgage loans is based on what is called a mortgage guarantee. In other words, the organization that groups your credits takes one or more real estate as collateral.
This means that, in the event that the financing will no longer be honored, your creditor would be entitled, under the conditions provided by law to protect borrowers, to request a foreclosure procedure to reimburse the sums due.