When does the repayment of the mortgage begin?
Sale : When does the repayment of the mortgage begin?
Once the mortgage offer is signed, the borrower accepts the payment terms defined with the bank. Here's everything you need to know about the start of the repayment and the possibility of postponing the first deadline.
The month following the visit to the notary
By going through a loan taken out with a bank to finance the purchase of its property, the amount granted by the supplier institution is fully released and credited to the notary office taking care of the transaction. Only at the time of signing the authentic deed of sale.
Commonly, the repayment of the loan begins the month following the signature at the notary. It is common to respect a minimum period of 30 days after the payment of funds to begin repayment by the borrower with the first monthly payment. It is possible in some banks to have the freedom to choose the desired withdrawal date, generally determined in relation to the regular movements of the account, related to expenses and income.
Changes to loan repayment terms
The terms of repayment of the mortgage must be included in the loan agreement. To be able to modulate his maturities, the borrower must subscribe his mortgage with the option "modular maturities". With this option, it is possible to adjust payments up or down according to the vagaries of life (retirement, unemployment, illness, etc ...) and changes in financial situation. This option can be judicious, the mortgage being subscribed over a significant period. By repaying more, the borrower proportionally reduces the duration of the loan. Upward modulation makes it possible to benefit from an alternative to partial early repayment. Conversely, bearish modulation will generate higher costs of the loan by its extension.
Deferred repayment of the loan
In the event that the purpose of the loan would be to finance housing in VEFA (Sale of housing in Future State of Completion) or works, the release of funds can be staggered. For the VEFA, the release can be made in correlation with the calls for funds required by the promoter and the evolution of the site. At the beginning of the credit, the purchaser can benefit from a deferred repayment. During a partial deferral, the borrower will only pay interim interest, determined on the sums released.
It is then at the time of delivery that the repayment of the borrowed amount begins. However, it is possible for the purchaser to benefit from a total deferral. In return, the deferral of interest generates additional interest, cumulating with the amount of borrowed capital, making this solution more expensive.
Some loans, regulated or subsidized, such as the PTZ (Zero Rate Loan) have special repayment terms.
- Once the mortgage offer is signed, the borrower accepts the payment terms defined with the bank.
- By going through a loan taken out with a bank to finance the purchase of its property, the amount granted by the supplier institution is fully released and credited to the notary office taking care of the transaction.
- Commonly, the repayment of the loan begins the month following the signature at the notary. It is common to respect a minimum period of 30 days after the payment of funds to begin repayment by the borrower with the first monthly payment.
- It is then at the time of delivery that the repayment of the borrowed amount begins.
- However, it is possible for the purchaser to benefit from a total deferral. In return, the deferral of interest generates additional interest, cumulating with the amount of borrowed capital, making this solution more expensive.
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Posted on 20/10/2021 by
Andy LECUYER
