When you are on the point of buying a house, a careful analysis procedure of the real estate proposals takes place, which, however, cannot be separated from an evaluation of the best financing opportunities. Which to take out? The Social Institute mortgage loan ex Government Agency is undoubtedly an offer to be considered. Let’s see what it is and what are the latest news.
Mortgage loans Social Institute
The Social Institute mortgage loan ex Government Agency is a proposal that provides for a rather limited category of beneficiaries. It is in fact a line of credit designed to respond to requests from employees who have an open-ended contract and retirees enrolled in the unitary management of credit and social benefits.
For what purposes to use the Government Agency mortgage
How does the Social Institute ex Government Agency mortgage loan work? As mentioned above, it is a proposal based on the first house but provides for different maximum sums and purposes.
Three intervention realities are foreseen. First of all, we have the purchase or construction of the first house, a scenario for which Social Institute offers up to $ 300 thousand.
A constraint regarding the property must be considered. The dwelling must not fall within the field of the cadastral categories concerning luxury structures.
The mortgage loan can also be requested for works carried out on the main house. Various works are admitted, in particular we detect maintenance, renovation, transformation, adaptation or expansion.
The highest figure that can be reached is 150 thousand USD, the sum cannot however exceed 40% of the value of the property. The home covered by the mortgage will be subjected to an appraisal which will verify the actual value of the home.
Finally, the Social Institute ex Government Agency loan may be requested for the purchase or construction of a garage or parking space. The maximum figure is further reduced compared to the other two purposes that we have indicated, the amount is 75 thousand USD.
The employee or pensioner can also receive, taking advantage of the same interest rate of the loan, up to 6,000 for costs relating to the insurance front.
The sum granted by the social security institution cannot in any case exceed 100% of the value of the home.
If the requests also exhaust the availability of the social security institution, a ranking will be drawn up to regulate access to credit.
News Social Institute, the rate changes
As regards the fixed rate of the Social Institute ex Government Agency mortgage loan, there is an important change introduced just this year. Resolution number 89 of 25 May rewrote the criteria for calculating the fixed interest rate.
The fixed rate is calculated according to the LTV criterion, i.e. loan to value. What changes compared to the past? The rate considered is calculated in the light of the relationship between the value of the loan and that of the real estate structure.
The house will be subject to an appraisal by the social security institution that will evaluate the house.
Variable interest rate
Those who are not interested in the fixed rate can choose to take out a loan characterized by a variable rate. It is an option suitable for those who have a certain financial availability.
With the variable rate, the borrower can in fact enjoy significant savings but at the same time, if the market trend is not favorable, it can be subject to a significant increase in the installment.
How much does the variable interest rate of the Social Institute ex Government Agency mortgage loan correspond? Social Institute provides a 6-month Euribor rate, calculated over 360 days, increased by 200 points.
The aspiring borrower must not neglect the value of the expenses relevant to the administrative aspects. Costs translate into 0.50%.
The social security institution allows you to ascertain the characteristics of the Social Institute loan thanks to a loan simulation service.
Using the functionality of the Social Institute website (Social Institut), the borrower can also proceed with the download of the pre- filled MAV useful for the payment of the loan installments.
Duration of the refund
How long do the repayment plans last? The duration issue includes various options that start from a minimum of 10 to a maximum of 30 years.
The borrower who is at least 65 years old must meet a limited repayment term. 15 years cannot be exceeded.
The repayment process involves a French amortization plan.
Mortgage application times and methods
How to obtain the Social Institute ex Government Agency mortgage loan? Those interested in this product must submit the request using the features of the Social Institute.it site.
However, precise time intervals must be respected which establish the admissibility of the application: the first ten days of January, May or September.
Any request that is not complete from the point of view of documentation and related forms will not be evaluated by the Institute.