When purchasing a property, the borrower chooses a mortgage loan suited to their repayment capacity, age, property price, and many other factors. The pace of our life is very demanding: our needs evolve, our income changes, the property value fluctuates, and often, interest rates and loan-related indices also change. Consequently, the monthly repayment of our initial loan can also vary.
It is strongly recommended to ensure that the loan taken out in the past remains suitable for the borrower even after several years. There is no need to stay with a loan that no longer suits us.
What is the solution?
Loan reassessment.
Here are some important points to know about mortgage loan reassessment:
Reassessment consists of taking out a new loan to replace an existing loan.
It is possible to reassess with the original bank or with another bank.
You can reassess the entire loan or just one of the loan products.
Reassessment can be carried out several times if justified.
The reassessment process is not complicated: it requires examining the borrower's current repayment capacity, evaluating interest rates and different products, and determining the profitability of the reassessment.
The costs associated with reassessment include early repayment of the previous loan, sometimes an appraisal, registration fees for the new loan by a lawyer, and possibly the fees of a mortgage advisor to choose the most suitable product.
Why is it worthwhile to reassess?
Reduction of the total loan cost due to a decrease in interest rates.
Shortening or extending the loan term.
Decreasing or increasing monthly payments.
Request a balance statement for loan repayment, and a professional will evaluate for you whether better loan conditions are available or if conditions more suited to your current needs can be obtained.
