Requesting the Subrogation of the Loan is Possible. Find how!
It’s been several years since you turned on a mortgage and are you no longer satisfied with the terms and conditions? Maybe because the latter are not as advantageous as in the past? In these cases it is possible to resort to the Surroga del Mutuo, or commonly known also as portability of the loan. Let’s find out what it is and how to request it.
What is a loan subrogation?
Introduced with the Bersani Law of 2007, the subrogation of the loan is a type of contract that offers the possibility of transferring the loan, currently in place, to another credit institution that has more advantageous conditions. This procedure makes it possible to maintain the mortgage on the old loan and renegotiate the conditions of the loan, such as its duration, the interest rates applied and the amount of the monthly installment to be repaid.
What are the costs of subrogation of the loan?
If you are already thinking of putting your wallet in place, you can feel comfortable. In terms of costs, requesting the subrogation of the loan does not involve any type of expense on the part of the borrower, as envisaged by Decree No. 40 of 2007.
Thanks to this law, the notary costs of the mortgage subrogation, as well as the preliminary investigation costs and those for the property appraisal will not be borne by the holder but will be borne by the bank that takes over with the new contract. It is also possible to transfer the costs of the mortgage insurance or, alternatively, request a refund and sign a new one with the new credit institution.
The customer’s decision to transfer the loan to a new bank cannot be challenged by the old credit institution nor can it charge additional transfer fees.
However, it is important not to confuse the subrogation of the loan with the replacement of the loan. Let’s see why.
What is the difference between the subrogation of the loan and the replacement of the loan?
Replacing the loan allows the new bank to request a second loan through which to extinguish the old loan. Precisely because it provides for the ignition of a new loan, opting for replacement, it will be necessary to take on all those expenses related to the opening of the new contractual practice.
As a result, while for the replacement of the loan, the costs are borne by the holder of the loan, the subrogation of the loan, as we said earlier, maintains the mortgage registered with the old bank and delegates to the new credit institution all the other costs.
So, whether the loan has just been initiated or whether you are coming towards the end of the contract, opting for the subrogation of the loan you can lighten the monthly repayment installment and this will help you continue to keep up with the payment of the installments and do not risk having difficulty in paying off the debt.
The Heathcliff team professionals will be at your side to guide you so that you can get the best financing according to your needs.