Replacement and liquidity loan: how does it work?

Have you ever heard of the mortgage for substitution and liquidity ? If you already have a mortgage to buy the house, but you are dissatisfied and need further liquidity, you can ask your credit counselor to trust the possibility of extinguishing the old mortgage and turn it on a new one, at more advantageous economic conditions for you. Find out in this guide how the substitution loan + liquidity works and what are the possible benefits to be exploited for your benefit.

How does the mutual replacement + liquidity work?

Thanks to the Bersani law of 2007, it is permissible to transfer a mortgage, closing the loan with the lender and accessing a new loan at the most convenient credit institution.

With the mortgage substitution, the borrower has the possibility to request additional liquidity to face the costs of restructuring or other needs.

The mutual substitution and liquidity grants the borrower up to 80% of the value of the property and usually has a maximum duration of 30 years . The borrower has the option to opt:

  • for the fixed rate , to be sure that the installments will remain constant for the entire duration of the amortization plan;
  • for the variable rate, to take advantage of the advantages of financial ratios;
  • for the variable rate with CAP, which sets a ceiling on interest to prevent the installment amount from increasing too much.

  Benefits Mutual replacement + liquidity

The replacement provides for the early repayment of the loan in progress at the lender and the signing of a new loan at more advantageous conditions for the borrower at a new bank.

Replacing the mortgage can be an interesting solution to distribute the repayment of installments over a longer period of time, in this way you can lower the amount, even if it can lead to an increase in expenditure, sometimes even exaggerated.

Even if the amount lent by the lender exceeds that of the residual debt, the tax benefits to deduct the interest are not affected and are not lost.

Regarding the insurance policy premium on the property, it is included in the total cost of the loan.