It is possible for a homeowner to obtain a loan repurchase without mortgage guarantee. Here is the advice from our experts.
Credit repurchase: without mortgage guarantee
A loan repurchase makes it possible to reduce its monthly payments, for the borrowers owners, it is very often asked to put the real estate in mortgage for guarantee the repayment of the debts.
The mortgage guarantee is a security for the lender to recover the loan amounts and it is a means for the borrower to benefit from advantageous conditions. Everyone is there. Simply, it is possible to obtain this same type of financing without mortgage guarantee.
Loan buy-back: nature of the loan
It is enough to understand the legislation in force. There are two loan buyback operations: real estate and consumer. It is the share of real estate assets to be taken over which determines the nature of the financing:
- more than 60% of mortgage loans = repurchase of mortgage loan
- – 60% of mortgage loans = repurchase of consumer loan
For example, an owner has $ 100,000 of mortgage to buy and $ 20,000 of consumer loan to buy. In total this makes a loan repurchase of 120,000 dollars. The real estate share is 83% (100,000 dollars / 120,000 dollars X 100). The financing will be real estate.
Another example: an owner has 30,000 dollars in property loans and 50,000 dollars in consumer loans. In total, there are 80,000 dollars to match. The real estate share is 37.5% so the financing will be for consumption.
Obtaining credit repurchase without taking collateral
The mortgage guarantee is systematic when it is a buyout of mortgage but if it is a buyout of consumer loan, it is not automatic. It is possible to ask the lender for financing without taking collateral, a study will necessarily be necessary to determine the feasibility of the project and there is a good chance that the financing will be less attractive.
At this stage, an analysis is essential to obtain a personalized opinion and an estimate of the future monthly payment. It’s free and without obligation. Now is the time to obtain this loan.