The mortgage ratio is one of the criteria studied when applying for a loan with mortgage guarantee, here is what you need to know.
Redemption of credits with mortgage and calculation of quota
A homeowner who feels they have too heavy monthly payments or who wants to rebalance their budget can use loan consolidation. If the household wishes to have their home loan taken over, the lenders will offer financing with mortgage guarantees.
That is to say, the bank will offer a new credit agreement with a longer duration, a single rate and a reduced monthly payment. For taking collateral, if a mortgage is already in place, the lender will then have it withdrawn and put one on the new loan.
Finally, the borrower can benefit during the operation from an amount allocated to a new project. All this must be the subject of a study including the verification of several criteria including the mortgage share.
The mortgage loan repurchase ratio
The quota represents the sum equivalent to the value of the property. That is to say that on a property worth $ 200,000, the share of 100% represents a loan of $ 200,000. A share on this same property of 80% means that the amount loaned will be $ 160,000 (200,000 X 80%), and so on. Thus, the mortgage ratio represents the amount that the lender will be ready to grant.
In a grouping of loans, financial institutions will generally offer a share of 80% on average. That said, this percentage can be revised upwards or downwards depending on the lender and especially depending on the profile of the borrower.
However, the quota is based on the value of the property and the lenders sometimes verify with a real estate expert, either external, or attached directly to the bank. It is therefore essential to provide a property value close to that of the market to avoid any disillusionment during the transaction.
Simulate the repurchase of mortgage loans and know the share
The simulator allows you to quickly know if a project is feasible, it is also an opportunity to take the temperature on the amount of the monthly payment as well as the share of the mortgage rate. Several credit institutions offer mortgage financing, so it will be easier to find a tailor-made offer at the best current conditions.