Mortage loan

Do you know all the mortage loan information?

Are you thinking of getting a mortgage loan? Stay with us to learn more about this type of loan

 

The mortgage loan consists of a loan agreement of the credit institution with the client for a certain period of time, used for the acquisition, construction and realization of works for the private housing, permanent, secondary or leased housing, as well as for the acquisition of land for housing construction.

 

Is life insurance mandatory?

No, but it is required by most institutions. They must inform the client, before the contract is signed, if it is mandatory to obtain life insurance. If required to obtain one, the customer can freely decide on the insurance company from which he wishes to obtain. Institutions must present clearly all the conditions inherent to the contracting of the credit, and are obliged by law to publicize the amount of commissions and expenses in the prices that are posted at the branches and on the Internet.

 

Interest rate

Housing loans may be granted at variable or fixed interest rates. If it is variable, it changes over the life of the loan, whenever the value of the indexer is revised, and this value changes over time due to factors unrelated to the loan.

 

In the case of the fixed interest rate, the customer knows what the rate will be until the end of the loan term. At the time the client gets a loan, it is normal for the fixed interest rate to be higher than the floating, and only at the end of the loan does the customer know what would have been the best option at the time he signed the contract.

 

 

Other information:

  • The client can amortize part of the loan on any payment date of the installments, having only to notify the credit institution 7 days in advance. In this case, the institution may charge a commission.

  • Access to housing credit is, in principle, guaranteed to any household. However, the credit institution is not obliged to grant the loan.

  • You can transfer your housing loan to another credit institution at any time during the term of the agreement, and you must notify the bank ten days in advance.

  • If you agree to be a guarantor, you can only do so if the bank agrees to your replacement. The guarantor is a guarantee for the credit institution if the debtor is unable to fulfill the contractual obligations.

 

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