Understanding Mortgage Consolidation: What You Need to Know

What exactly is mortgage consolidation?

The repurchase of mortgage loans is an operation whose objective is to regroup its credits in only one, whatever the nature of the latter, when one is the owner. A mortgage is often accompanied with the operation.

A mortgage is a real surety type guarantee, i.e. on a real estate (house, apartment or land). The mortgage guarantee only exists for the duration of the loan. It is possible to be granted an additional year, but it cannot exceed 50 years. The guarantee is lifted at the end of the loan, if all debts have been honoured. The latter is set up by a notary.

The borrower can release the mortgage on a property before the end of the loan if the property is sold in the event of an early repayment (raised hand), with the exception of property belonging to institutions, if the parties do not reach unable to find an amicable solution and the borrower defaults, the credit institution can assert its guarantee by seizing and selling the property.

Types of heritage:

• Real estate: main, secondary or rental residence.

• Property of the financial asset type, or pledge: life insurance, stock portfolio.

How does a mortgage buyback work?

In other words, you are pledging a property that you own. This then allows you to acquire the desired amount of money by obtaining a loan with a mortgage repayment plan.

The amount secured by the mortgage varies depending on the type of loan:

• – real estate: the amount can go up to 60 to 80% of the value of the property (depending on the banking partner).

• – pledge: the amount can be up to 90% of the value of the financial products.

The necessary conditions to fulfill to realize a mortgage:

• – be the owner of the property.

• – that the ownership of the property is free of any guarantee (without mortgage in the process of being reimbursed).

• If you are a homeowner: it may be possible to buy back credits which will combine the credit with mortgage and your mortgage.