You can also arrange a mortgage without a down payment secured by real estate. In this case, the collateral will not be the housing that you buy with a mortgage, but the one that you already own. The subject of collateral can be an apartment, a house, an apartment or a plot of land. What conditions must be met?
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When you take out a mortgage, you will be encumbered with a mortgage: you will still own the apartment, but you will be able to dispose of it with certain restrictions. For example, you will only be able to redecorate or sell your apartment if you agree with the bank. The encumbrance will be removed after the mortgage is paid off in full.
I did a little research about this on Money Expert when I was thinking about a mortgage loan. These are the conditions that must be in place:
- The apartment or house must not have children registered in it.
- The property must not be in a dilapidated or dilapidated building that is due for demolition.
- The loan amount should not exceed 60-70% of the value of the mortgaged property.