The advantages of the Social Institute Government Agency mortgage substitute
The mortgage subrogation is the operation that allows you to transfer the current loan to a new bank, in order to obtain better conditions. An opportunity that is particularly advantageous for public employees and pensioners who can resort to the Government Agency mortgage substitute. But let’s see in detail why the surrogate loan is convenient for the public sector.
The Government Agency surrogate mortgage offer is suitable for those who have a mortgage that no longer satisfies them. In this case it is in fact possible to benefit from the preferential conditions applied by Social Institute aimutui ex Government Agency.
Products that are granted by the social security institution through a special credit fund ex Government Agency, the Unitary Management of credit and social benefits. Fund to which public employees are automatically registered and which does not provide for the intervention of banks and financial institutions.
By resorting to the Government Agency substitute, therefore, the same conditions will be obtained as the subsidized loans, by transferring the financing to the Government Agency.
Mortgage rates Government Agency
To understand that the surrogate loan is worthwhile, it is sufficient to consider the interest rates. Mortgages can be fixed or variable rate. For variable rate mortgages we have a Tan calculated on the basis of the 6-month installment value, increased by 200 basis points.
The interests of fixed rate mortgages, on the other hand, are calculated using the loan to value method, that is, based on the percentage of the mortgage’s intervention with respect to the value of the property. Below is the table containing the values applied to the Tan of fixed rate mortgages.
How to apply for the Government Agency mortgage substitute
Now that we have seen why the subrogation mortgage is convenient for civil servants, let’s move on to the question of the request. All public employees and pensioners who have an ongoing mortgage loan can apply for the Government Agency substitute.
For the purposes of subrogation, the loan must have been subscribed for one of the purposes admitted for Government Agency mortgages:
- purchase or construction of the first house;
- renovation, maintenance, adaptation, expansion or transformation of the home;
- purchase or construction of a garage or parking space.
The applicant must also be registered with the aforementioned Unitary Management of the credit and social benefits of Social Institute. As regards the transmission of the application, this must be sent electronically to Social Institute, using the online service on the institution’s website.