Pay off your mortgage early
Over time, it is quite common for an ongoing mortgage to become too expensive or, more simply, not very convenient compared to market offers. Situations in which it may be convenient to pay off the loan. In this case, employees and pensioners can take advantage of particularly favorable conditions by choosing Government Agency early repayment mortgage loans.
It is a product designed precisely to meet the needs of those who wish to extinguish, totally or partially, an ongoing mortgage loan. Government Agency early repayment mortgage loans can only be requested by employees and pensioners belonging to the Social Institute Public Employee Management. However, it is possible to pay off the mortgages signed by the Social Institute member and by the spouse.
But what are the requirements to be met to access Government Agency early repayment mortgage loans? Since they fall into the category of multi-year loans, loans for the repayment of the loan are accessible only to those who are registered in the Social Institute credit fund (Unitary management of credit and social benefits).
In order to access credit, the applicant must also be able to claim 4 years of payments from the aforementioned Management. A length of work, useful for retirement purposes, of not less than 4 years is also required.
Amount and repayment of the Government Agency loan
Now that we have defined what are the requirements to be met for access to credit, let’s move on to the repayment terms. The first thing to clarify regarding Government Agency early repayment mortgage loans is how much you get.
The sum that can be financed is defined in the application by Social Institute in relation to the amount still owed to the bank. In other words, it is possible to obtain only the sum necessary for the extinction or reduction of the mortgage. Therefore, no additional liquidity can be obtained.
The loan is repaid with a ten-year amortization plan characterized by constant monthly installments. Installments that are deducted directly from the payee’s paycheck. The interest rate (Tan) is fixed at 3.5%. Administration fees are calculated at a rate of 0.5% on the gross loan amount.
Social Institute loans forms and application
As regards the application, this must be sent electronically to Social Institute. The request must be drawn up on the appropriate form, found on the official Social Institute website. The following documents must be attached to the loan application.
- Financing act relating to the mortgage to be paid off;
- Title of ownership of the property subject to the loan;
- Self-certification of the applicant’s family status;
- Declaration issued by the lender in which the amount necessary for the total or partial repayment of the mortgage loan is certified.
In the aforementioned declaration, the institution must also indicate the data of the property subject to the mortgage. It must also indicate which title the loan was granted to.