Are you over 60 and would like to apply for an lifetime loan to get some extra peace of mind? Do you want to know how to get this type of loan?
Our guide today will help you understand how to get the loan you need. Here are all the steps to get the lifetime mortgage loan.
How to get a lifetime mortgage loan
The lifetime mortgage loan designed specifically for those over 60 who need to supplement their income to improve and maintain their lifestyle and help their children.
It reserved for those over 60 years old and owner of a dwelling used as a residence. It offers immediate liquidity and allows you to maintain ownership of the property and without giving up the bare ownership.
You can decide whether to receive the amount in a single solution or if you have it in periodic payments. You can pay without installments, with periodic interest payments or with the possibility of paying off the loan at any time you want without receiving any penalty.
This type of loan can only be requested in branches. It is a medium and long-term mortgage loan only for natural persons over the age of 60 who own real estate.
Available in two different options from which you can choose to have your loan:
- annual capitalization of interest and expenses which allows you to repay with a single repayment at maturity;
- annual payment of expenses and interest with a debt repaid in a single settlement at maturity.
The mortgaged property must be that for residential use with a first degree mortgage. In the case of cohabitation with non-owners, but all of its heirs, the financing must be provided with joint account.
This formula allows you to mortgage the property by retaining ownership and signing the loan agreement with the bank. At the death of the holder there are two possibilities for the heirs:
- Decide to pay off the debt by retaining ownership of the property;
- Selling the home as a guarantee.
The maximum fee depends on the age of the applicant and there are no installments, the final payment due will be based on the interests determined at the time the contract was signed.
If you need to know all the features of a lifetime mortgage loan we recommend making an appointment at a branch with a specially trained representative. This way you will avoid having surprises.
What do you need to get it?
To have a lifetime mortgage loan it is necessary to provide the bank with:
- A valid identity document;
- Fiscal Code;
- Documents attesting ownership of the property and residence;
- Preliminary Notary Report or Act of Origin;
- Family status.
Moreover, the bank to which the lifetime mortgage loan is requested will be taken care of. To make sure you bring all the necessary documentation with you, we recommend contacting a branch and talking to a representative.
Once you have requested an appointment for a loan at a branch, you will be asked to tell the applicant what the average waiting time is for obtaining the lifetime mortgage loan. Waiting times such as interest change depending on the case, age and amount.
To find out about waiting times, you can also request a quote and evaluate how long you will have to wait for the lifetime mortgage loan.
The interest to be paid on what amount?
To obtain the fixed-rate lifetime mortgage loan, the spread starts at 4.60%. The annual nominal interest rate depends on the choice made by the applicant when the contract is stipulated.
The interest changes depending on whether the loan is an annual capitalization or if the installment payment has been opted for. The investigation is 1.3% in both cases.
The annual fee for the mortgage loan is 45 euros per year, plus 2.50 euros per tranche. It also adds 104 euros to the deed of consensus to be paid upon the cancellation of the mortgage, 130 euros for the renewal of the latter, 130 euros for the reduction of the same, 78 euros per share for the mortgage division, 207 euros for the restriction of the mortgage.
Finally, the costs for the certification of the existence of the credit of 52 euros and other inexpensive expenses are added. To find out all the features of the mortgage loan with Monte dei Paschi di Siena, we recommend calling the toll-free number 800 414141.
The toll-free number will be answered by an entry that will allow you to select specific telephone numbers for each service. Otherwise you can choose to go directly to a branch to ask the bank operators for information and clarifications.
If you need to know the specific interest rate for your mortgage loan you can easily request a quote from a branch. Being a particular type of loan it is always advisable to go to a branch. The quote for applying for the mortgage loan is not binding and is also completely free.
The loan quote allows you to know the interest rates related to the loan such as the TAN and the APR. The TAN is the interest rate, while the APR is the synthetic total cost index of the loan in which the total costs of the commissions to be paid for the request for a lifetime mortgage loan are reported.
Before applying for a loan, even if it is a lifetime mortgage loan, it is always useful to check both the TAN and the APR. Checking the rates allows you to understand which ones are the most convenient. By doing a quick search before applying for a lifetime mortgage loan, you can even manage to save money on interest payments.
Remember that requesting a lifetime mortgage loan could mean finding yourself, in some cases, leaving a debt to your heirs, even if they can often be repaid by selling the house.