A mortgage is a loan secured by a mortgage. This loan may be intended to buy real estate, but it can also be used to finance many projects, renovations in your home, the purchase of a new vehicle, the financing of a trip. It is therefore an unallocated loan, unlike real estate credit. There are several formulas of this loan, so how to choose the ones that suits you?
A special senior formula available
Institutions often set an age limit for credit applicants. People over 40 have trouble finding loan offers. Nevertheless, there is a formula specifically adapted to seniors over 60, the bonded mortgage. This loan does not require the purchase of insurance as usual since it is replaced by a deposit. The loan will have a double guarantee, the mortgage on the one hand and the bond on the other hand, enough to reassure the banks to provide a loan to seniors to meet their needs.
Mortgage buyback, the option to reduce your expenses
Sometimes your commitments become so heavy that you feel asphyxiated. The debt ratio is set at 33%, this threshold is quickly exceeded when you accumulate auto loan, consumer loan and mortgage loan. The solution to reduce your expenses and reduce your commitments to an acceptable level is the loan buyback. This mechanism consists in grouping all your obligations so as to only support one commitment.
In practice, a bank will repay all your loans in advance. She will then offer you a new credit agreement that will be more bearable for you. The new loan may be secured by real estate that will serve as a mortgage. This is a new beginning for you, with a unique interest rate and significantly lower than previous ones.
The advantage with a loan buyback is, besides the possibility for you to blow, to provide you with an additional financial dimension. In fact, the redemption can bring your debts well below the limit, giving you the opportunity to invest again if you wish.