When a mortgage subrogation is carried out, a new public deed must be made before a notary and this implies that the modifications must also be registered in the Property Registry.
The expenses and commissions that are applied when carrying out a subrogation may vary depending on the bank since each entity has its own policy of action. Broadly speaking, among the most common cats we highlight:
What expenses and commissions are there in a mortgage subrogation?
Creditor compensation commission: the Creditor charges it and varies if the loan has a fixed or variable interest. If the change is outside the interest rate (it will be passed from variable to fixed), it may not exceed, by law, 0.15% of the capital repaid in advance during the first 3 years of the term of the loan contract. After them, no commission can be applied.
Compensation of expenses: according to the Mortgage Loan Law, approved in June 2019, the subrogated lender must be reimbursed by the subrogate lender. To calculate the amount, different variables will be taken into account. Between them:
- The Tax of Documented Legal Acts.
- Other expenses: the liquidation of expenses between the sum of the loan amount and interest, compensation, penalties for default and other points that had been fixed should be prorated. The subrogated entity must reimburse the subrogated party for the amount obtained.
Opening commission: if there is one in the new loan.
Can I subrogate my mortgage-free of charge?
Yes. Some entities assume the subrogation expenses if you take your mortgage to their entity. However, their conditions may vary.
You can check the current subrogation mortgage offer without expenses in the subrogation mortgage comparator.
Which bank offers the best subrogation offers?
There is no single bank that offers the best conditions. It will depend on each case: your economic profile (job stability, monthly income, …), outstanding capital, the possibilities you have to hire more products if you want to take advantage of to increase capital or not, …
What we recommend is that you use the subrogation mortgage comparator. To see the ranking with the best subrogation mortgages that appear based on your profile.
Do they have to pay you the floor to make subrogation?
In practically all cases the appraisal of the house is necessary. The only exception is that the previous appraisal is less than 6 months old, although the bank has the right to request a new appraisal.
The bank will ask you for appraisal insurance if you increase capital if the outstanding debt is greater than 300,000 dollars if the amount exceeds 80% of the appraisal value if you have had any problems with the payment of the fees, etc.
This expense usually amounts to 1 or 0.8 per thousand of the value of the house or the appraised apartment, although it also depends on the travel expenses to reach it, the bank rates, etc.