Those who made a mortgage certainly remember the long process of choosing the bank to obtain the most favorable conditions. Maybe sometime later, he has found other better offers, lower rates and lower expenses. If you are in the condition of wanting to transfer the mortgage in order to save money, then read this article well. How to transfer a mortgage from one bank to another with the subrogation: when it is convenient, online buyers, fixed rate and variable rate benefits, expenses and costs to consider.
Transfer a mortgage with the subrogation
The subrogation of a loan is nothing more than the possibility of transferring a mortgage loan from the bank that has granted it to another bank with different duration and interest rates .
Mutual. Why change banks? First of all, the portability of the loan is generally required when more advantageous conditions are offered by another bank. A bit like when you change your telephone company, only when it comes to mortgage payments and savings could be really remarkable!
Surroga: how much it costs to transfer a mortgage
Thanks to the Borsari Decree, which later became law n.40 / 2007, the expenses related to the subrogation of the loan are totally canceled. No activation or transfer costs , all totally free!
However, we would like to remind you that by carrying out the loan subrogation the remaining consideration will remain unchanged, the interest rates will change and in rare cases the duration. Although the transfer of the loan from one bank to another is free, there is a cost for the “withdrawal of the loan”. If you need a higher loan you will have to do another operation: the replacement of the bank loan . However, the replacement of the mortgage requires additional costs due to notary fees to redefine the mortgage.
How to apply for the subrogation of the loan
Regardless of the channel (online or traditional) that you use to request the loan subrogation contract, once you receive the quote, you will have to physically go to the selected branch to fill out the paper forms.
The bank that first granted the loan, by law, cannot refuse the transfer of the loan. The same has 30 days to grant the passage. The bank that granted you the new loan, once the authorization is received, will proceed with the notarial deed to make the transfer effective.
We also remind you that the bank to which you apply for subrogation is not obliged to grant you the loan, the choice is discretionary.
Mortgage contract with subrogation: which documents are required
The holder of the loan must present, in addition to his own identity document and tax code, a series of attachments concerning the property and the previous mortgage as:
- Authenticated documentation of the previous loan
- mortgage registration note
- cadastral documents and floor plans of the building
Important: all mortgage holders must physically go to the bank and present the aforementioned identification documents. The banking institution, based on its own needs, may request the presentation of further attachments.
Mortgage transfer: when convenient
You may be wondering: is the subrogation of the loan always worthwhile? Undoubtedly, zero expenses for carrying out this ” transition ” from one institution to another are an advantage but it is important to verify the actual savings that follow.
How to understand if and when it is advantageous
Fixed rate and variable rate: which to choose? Mini-guide for choosing
Choosing whether to transfer the loan to another bank is never a two-way choice. It is important to first consider: the interest rates from which you start, and the remaining loan period.
Thus the choice between fixed or variable rates is decisive.
In order not to make the speech too complex we will limit ourselves to providing you with a simple and intuitive practical mini-guide that will help you understand when it is convenient to transfer the loan from one bank to another .
The choice of the interest rate is conditioned by the duration of the loan still to be extinguished.
The variable rate is more convenient for residual periods of around 10 or at most 15 years no more. If the loan is less than 15-20 years away, it is advisable to opt for a fixed rate .
However, the actual convenience of the subrogation is substantially linked to the conditions they propose to you. There are numerous online portals that, based on your needs and the type of mortgage you would like to transfer , allow you to compare different proposals, from different bank mortgages, a bit like when choosing car insurance.
How do you apply for subrogation to a mortgage?
To request a quote, you can contact the bank directly with whom you are interested in negotiating the portability of the loan and critically evaluate the conditions they propose to you.
Numerous online services are available for online buyers that provide treatments, sometimes more convenient than physical branches.
In addition to providing online software for comparing the proposals of the affiliated banks, they provide a toll-free number that can be contacted to request a consultation and evaluate the budget most suited to the citizen’s needs.
We remind our readers to approach the choice of a mortgage, online or face to face, in a critical and responsible manner, seeking transparency and carefully evaluating the actual convenience in making a subrogation.
Arm yourself with quotes, carefully compare the proposals and make your assessments: remember that you are the customers, and as such you have the right, by law, to be clear and transparent. If you have any doubts or doubts, do not hesitate to ask the bank you are contacting.