The law that was reducing the costs of the mortgages will come into force at the beginning of 2007
24.10.2006
The new law that will regulate the mortgages will come into force in the first trimester of 2007. The new regulation will reduce the notarial costs and register them and it will cut the maximum commission away in case of early cancellation of this type of loans.
The new regulation will reduce the notarial costs and register to them that he supposes for the users the substitution, modification and change of a mortgage. In case of an "average" mortgage the reduction will be concerning 40 %, as has pointed out the secretary of the State of Economy, David Vegara.
Cancellation
The new law also will cut away to 0,5 % the maximum commission that the financial institutions can apply in case of early cancellation of a mortgage loan to variable guy, which at present is 1 %.
For the mortgages, the entities will be able only to receive from fixed guy the commission of cancellation concentrated on the contract when the interest rates are lower than those who were in force when the mortgage was signed. In the opposite case, he told, the maximum commission will be 0,5 %.
Inverse mortgage
The reform of the Mortgage Law also will regulate the figure of the ‘inverse mortgage’, a product that allows to the persons older than 65 years or dependent persons to be owners of a housing to receive a revenue with the guarantee of the value of the same one.
The regulation establishes that although there becomes exhausted the revenue that contributes the financial institution according to the value of appraisal of the housing, the holder of the same one could keep on living in his house.
To the death of the acquirer, the heirs will have two possibilities, or that the entity executes the mortgage, this is, that the heirs bandage the housing, or that pay the debt that has generated the inverse mortgage and recover the building. The only guarantee that will have the bank to recover the money is the mortgage of the housing, but it will never be able to go against any other good of the heirs.
Vegara has told that the Government chases with this law “to improve the transparence and the information that the consumers receive” at the time of asking for a mortgage, what does not mean that at present “it is deficient”.
Source: Expansion.com
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