Do you know how the new mortgage law affects you?

by Xarxa · September 07, 2020

Mortgage loans are one of the factors that directly affect the activity of anyone real estate agency in Mallorca. It is logical, because most of the people who agree to buy houses, need the financial support of a bank. That is why you are interested in knowing the new Mortgage Law, recently approved. Our lawyers have prepared this summary with the main changes so you can get the most out of this banking operation.

A FEW NEW RULES THAT PLAY IN YOUR FAVOR

We are aware that the process of buying a home in Mallorca is complicated for clients. In addition to finding the house that meets your needs, the price and your economic availability come into play. And the moment of accessing a mortgage is, probably, the one that worries you the most. You are going to formalize an operation in which you compromise your financial future!

Banks are not making it easy either. Commissions, requirements, percentages ... there are not few people who have signed loans to buy a house in Mallorca without knowing what it entailed. The good news is that this new Mortgage Law comes to improve the conditions of those who contract this type of financial products. Among other reasons because it makes us share directives and regulations with all the EU countries.

In the data that may interest you the most, it implies that you are going to save about 1.000 euros in expenses for certain commissions that now revert to the banks. And, in addition, the granting of these credits is detached from your obligation to acquire other banking products, in particular some such as insurance. This is also a real cost saving for you!

THE PROTAGONISM OF THE NOTARY

There is no way to buy or sell a house in Mallorca without having the notary figure. With the new law, in addition to attesting to this sale and purchase operation, its functions are increased. And it is that, he is in charge of helping you to solve any doubt about the contract that arises or about the way in which it should be formalized.

Now you have 10 days before going to the notary to formalize the mortgage. It is about you being able to calmly study all the details. The documentation that you attach should include a report that is common to all banks with a comparison of services. Nothing to do with what happened until now, that you came to the notary's office to sign without having been able to read a comma before.

LESS COMMISSIONS, CHEAPER MORTGAGES

An important clarification, this new law is not claimable for operations prior to its approval. It only applies to those that are done now. One of the points in which it differs significantly from the regulations that governed before is in what refers to the chapter on commissions. Finally, limits are established for the amortization commissions that, in addition, are set depending on the type of mortgage that is contracted. That is to say, difference between those of variable interest and those of fixed interest. What does not matter is if the mortgage is partial or total, another advantage for the buyer.

The section on cancellations is also affected. Until now, it was difficult to cancel a mortgage because, depending on when you did it, you ended up losing a lot of money. With the new Mortgage Law it is obliged to make a calculation so that no amount of a cancellation at the beginning is not the same as if you do it at the end.

The team Xarxa Homes has specialized lawyers in the matter of credits and mortgage legislation. We offer you our knowledge so that you can solve any of your doubts about the new Mortgage Law. Do not hesitate to contact us!

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