The mortgage is a guarantee that relates to the property that you will acquire, through the loan contracted or property already acquired. If the monthly installments of your credit are not paid in due time, the lender can obtain the seizure and sale of the building in question to repay.
The strengths of the mortgage
The mortgage serves as a guarantee for an existing property such as a house that you are going to build or an apartment that you buy off plan. This differentiates it from the PPD which only works for old goods.
It lasts as long as the credit even if it remains registered in the land registration services for one year. Then she automatically turns off without any fees or formalities.
The mortgage does not prevent you from selling your apartment or house even if you have not finished repaying your credit. But if you are in this case, you will have to release the mortgage, which entails fees and the payment of duties and taxes.
The disadvantages of the mortgage
Generally, the cost of a mortgage includes taxes, taxes, notary remuneration and mortgage fees. It is as expensive to set up as to lift.
The mortgage must be made before a notary and gives rise to a publication at the services of Foncière Publicité, which generates significant costs. Unlike the PPD which also requires the intervention of a notary but is exempt from registration fees.
Also enters the cost of the mortgage, real estate security contribution. The cost of this contribution represents 0.05% of the amount borrowed, increased by 20% because these guarantees must also be registered with the Mortgage Bureau.
Finally, if you repay the outstanding capital, before the end of the loan, you must mortgage release fee. These fees represent between 1% and 2% of the outstanding capital and are the responsibility of the borrower.
To know: To make a mortgage profitable, you can request a transfer on a new loan. This is the case if you sell your home to buy another by renegotiating your credit, without contracting a new one. This solution is more advantageous because it saves you the costs of mortgage release and the taking of a new guarantee.