Mortgage subrogation: what it is and why choose it
What is the Government Agency mortgage substitute? The substitute is the driving force of the mortgage market. The success collected by the procedure lies in its saving capacity. In fact, it allows the transfer of the loan to a new credit institution, with a related rate and duration modification, and therefore a reduction in the monthly installment. All at no cost to the borrower.
Most banking institutions have at least one option dedicated to mortgage portability. Nor is Social Institute Public Employees Management an exception, which takes care of the disbursement of loans for the purchase of the main home, the so-called former Government Agency Social Institute mortgage loans.
These are financial products for public employees and pensioners who have been registered for at least one year in the Unitary Management of credit and social benefits (in addition to the registration, the related contribution is also required).
Other requirement to be respected: none of the applicant’s family members can be the owner of another home located on Italian territory.
To this general rule there are exceptions, covered by Regulation Government Agency. Scenarios affecting particular cases such as, for example, ownership shares or the ownership of a house assigned to the ex-spouse by the separation court order.
Loan amounts and conditions
The sum provided can reach a maximum of 300 thousand USD, to be returned with repayment plans that start from 10 but can extend up to 30 years. however, it is necessary to specify that the amount that can be financed varies according to the purpose of the loan.
In case of purchase of the first house, up to $ 300 thousand can be obtained, while the maximum amount is reduced for renovation works. In this case, the limit is set at 150 thousand USD. Those who apply for a loan to purchase or constrict a garage get a maximum of 75 thousand USD.
As regards the request for access to credit, this must be submitted via the Web, using the online services of the Social Institute portal (Social Institute.it). All correct and reflecting applications will be accepted, provided that the plafond of the competent Regional Management is adequate.
If the requests exceed the appropriations, it is the Provincial and Territorial Office to draw up a ranking that determines access to credit. The criteria adopted for the allocation of places are attributable to two elements: the composition of the family unit and the relative income.
On the other hand, if we consider the Government Agency mortgage subrogation rates, the user can choose between fixed and variable rates. In the first case, a Tan defined with the loan to value method is applied, while in the second the financed subject will pay a rate determined by the 6-month Euribor, increased by 200 basis points.
Below is the table containing the Tan values applied to fixed rate mortgages.
Question Government Agency subrogates mortgage
Let’s move on to the Government Agency mortgage subrogation opportunity. Those registered in the Unitary Management who reflect the requirements already stated and have previously taken out a first home loan, can benefit from the subrogation. The residual debt thus passes to Social Institute and is therefore subject to the conditions laid down by the former Government Agency Social Institute mortgages.
Government Agency mortgage subrogation requests are assessed together with mortgage applications and contribute to the definition of the access rankings for financing. As mentioned, the subrogation does not imply any cost for the borrower.
As for the transmission of the request, this must be done electronically. Access to the service is subject to authentication with Pin Social Institute. those who do not have the code can request it at any Social Institute office, or online using the guided procedure.
As is the case for real Social Institute mortgage loans, applications must be sent within specific time frames. This is because the resources allocated for the granting of loans are divided by Social Institute for four months.
The Government Agency mortgage subrogation request must therefore be sent:
- from 1 to January 10 (first quarter)
- from 1st to 10th May (second quarter)
- from 1st to 10th September (third quarter)
A detailed documentation must be attached to the subrogation application, including the loan deed of the loan with the bank. In this regard, we remind you that the list of all the documents to be presented when applying for a mortgage (including the case of the subrogation) is present on the official Social Institute website.