Each person can, according to his needs, subscribe to a mortgage in order to acquire a specific property.
Presentation of the classic home loan
The classic home loan may be for the purchase of a home, a lot, a second home or to restore one of them. This mortgage is made with banks where an application is filed.
After studying the financial situation of the applicant (s), the bank issues a prior offer indicating all the legal information. Thus, it specifies the identity of the two parties concerned by the loan offer, the nature of the loan to know classic or particular, the designation of the object of the loan as well as the total amount of the credit with the amount of the global effective rate and finally the guarantees required to benefit from the loan offer. The customer can then choose to accept this offer or refuse it.
A little regulated loan
The classic home loan does not have a strict regulation in this area. Thus, each banking establishment is free to propose a particular form of loan. Similarly, the duration of the loan can vary from one bank to another.
Interest rates may, depending on the contract, be fixed throughout the term of the contract, progressive according to the repayments already made or adjustable, ie it may be reviewed if the situation of the borrower (s) evolved. Similarly, the overall effective rate may very significantly differ from one institution to another.
The associated guarantees
As with many loans, the bank may require a number of guarantees before agreeing to grant the loan. These include the possibility of having a bank guarantee or the possibility of mortgaging a property to fully ensure that the loan will be repaid.
In addition, the bank may require insurance to be taken out to cover certain risks such as death, illness, disability or unemployment. The choice of insurance remains at the discretion of the customer.
If the borrower is able to repay the entire loan before its term, it can enjoy certain benefits. In fact, he may receive an early redemption fee equivalent to 3% of the amount still to be repaid.
This compensation can therefore sometimes be substantial. Similarly, the interest calculated over the entire duration of the loan may be subject to a special refund if there is an overpayment from the bank.