You probably do not have all the money you need to buy your home and have to borrow from a bank or savings bank and make a mortgage on your home.
The mortgage loan has a specific singularity that takes as collateral the housing (house, villa, bungalow, apartment …) in favor of the financial institution that lends the money. This means that, in case of not fulfilling the conditions agreed upon in the granting of the loan (e.g. non-payment of amortization receipts, installments, etc.), the Bank or cashier would become the owner of the property. Therefore, you mortgage your home in favor of the financial institution, until you have returned the entire loan in the conditions and deadlines.
This guarantee, which takes home the counterpart, is what explains that the interest rates that are generally applied are lower than the general or personal loans existing in the market.
One of the great incentives to buy housing around the world is the access to very advantageous financing formulas adjusted to the possibilities of each personal or family economy.
The flexible mortgage modalities, adjusted to the term and to the amortization quotas of each rent, have allowed the generation of a strong demand of some types of housing that a few years ago were inaccessible for many people of middle incomes.
The other great advantage has been the stability of low interest rates, secured by the absence of major inflationary tensions and clearly stabilizing economic policies.
Mortgages expenses
Opening commission
Percentage of the amount of the loan that the institution charges for the cost of studying, processing and managing the loan.
Notary
Fees for the intervention of the Notary as a public notary. Depend on the amount of the mortgage loan.
Registry
Fees for the intervention of the Registrar. Depend on the amount of the loan.
Documented Legal Acts Tax (IAJD)
Its calculation base is the mortgage liability, and the applicable rate varies according to the Autonomous Communities and the amount (it can vary between 0.1% and 1%).
Management
The payment for the costs of liquidation of expenses and taxes, and registration in the Registry