The mortgage in practice

The mortgage in practice

In practice, the most frequent type of mortgage is the real estate one: it provides for the disbursement of amounts linked to the purchase of a property. 

This type of mortgage when it is intended for the purchase, renovation, or construction of a “first home” property is also called land, and differs from the more generic mortgage loan,

which can be used to finance not only the purchase of a property but also its construction or renovation, but for use other than residential or for pure liquidity.

Furthermore, the mortgage loan often enjoys more favorable conditions than those applied to other mortgage loan purposes, both in terms of interest rates and bank and notary fees. 

The mortgage, land or mortgage, is always intended as a medium-long term loan, generally over 5 years and with an extension generally up to at least 30 years (although some institutions offer terms of up to 40 years). 

The amount of the loan does not normally exceed 80% of the value of the property, even if some banks manage to issue mortgages above this threshold and up to 100% of the value, upon presentation of greater guarantees.

Usually, the person who pays the amount to the borrower is a bank or a financial company.

The contract is formalized by the notary on the day of the sale, in the presence of the buyer, seller, and bank official.

The notary draws up two deeds: on the one hand, we have the deed, which provides for the transfer of ownership of the property;

on the other hand, the deed of real estate loan between the bank and the buyer, with the related amortization plan. 

On our site, you can easily discover the best mortgage of the day among those offered by the affiliated banks for the free search and comparison service,

or you can make a home mortgage quote and find the mortgage that best suits your needs. 

Finally, you can use the tool to carry out a customized mortgage simulation and calculate the amount of the installments.