Fine Home Loan options As Per Your Requirement Now

Who wants to increase his mortgage, should follow a few rules. Read here what you need to know, so that the bill will work for you at the end.

Current loan of the property

In order for an increase in the mortgage in question, the current lending of the property must not be exhausted. If the mortgage is already 80% in relation to the property value, an increase is only possible in exceptional cases. And that’s when the following points apply:

For financing be further collateral introduced

  • The income of the borrower is particularly attractive
  • The portability is easily given even after an increase
  • In all other cases: A mortgage can only be increased if the lending of the home is not already too high.

The income is crucial

Even if a property has a low loan, it is possible that the house bank refuses to increase the mortgage. Most frequent reason for the negative decision: the income. If this is low in relation to the cost of the mortgage and the property maintenance, an increase in the mortgage is often not possible. Most affected are borrowers who work part-time or households in which only one person is employed. Those who belong to this “risk group” can take appropriate measures against it: For example, increase the workload for a certain time or the non-working partner is looking for a side job.

Couples planning their offspring should apply for an increase in mortgage before maternity leave . The increase should then only go so far that you can afford the mortgage with a reduced future workload even. Because with the extension of the mortgage the bank examines in each case the current income conditions. If you notice any risks this can have unpleasant consequences. For example, the bank may require additional collateral or require an extraordinary amortization of the mortgage. In the worst case, the termination threatens from the bank. With the singapore lowest interest rate housing loan options you can have the best options now.

Is the existing debt security sufficient?

For the suspended mortgage, the bank serves a note of debt as collateral for the customer’s mortgage. The customer assigns the note to the bank. In return, this granted him the mortgage.

If the mortgagee wants to increase his mortgage, the amount of existing mortgage bonds on the property is crucial. If these are not sufficient as collateral, there are two possibilities:

  1. Increase existing debt.
  2. Issue a new note on the property.

Both are associated with costs .The increase or creation of a note must be carried out by a notary.

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