Replacement loan and liquidity: how does it work?


Have you ever heard of the mortgage for replacement and liquidity? If you already have a mortgage for the purchase of the house, but you are unsatisfied and need more liquidity, you can ask your trusted Credit Advisor for the possibility of paying off the old mortgage and taking out a new one, at more advantageous economic conditions for you.

Find out in this guide how the replacement loan + liquidity works and what are the possible benefits to be exploited for your benefit.

How does the mortgage replacement + liquidity work?

How does the mortgage replacement + liquidity work?

Thanks to the law of 2007, it is possible to transfer a mortgage, closing the one in progress with the lender and accessing a new loan from the most convenient credit institution.

With the replacement of the mortgage, the borrower has the possibility to request additional additional liquidity to face the expenses for the restructuring or for other needs.

The replacement and liquidity loan grants the borrower up to 80% of the property value and usually has a maximum duration of 30 years . The borrower has the option to opt:

  • for the fixed rate, to be sure that the installments will remain constant for the entire duration of the amortization plan;
  • for the floating rate, to take advantage of the advantages of the financial ratios;
  • for the variable rate with CAP, which places a ceiling on interest to prevent the installment amount from growing too high.

Advantages Mortgage replacement + liquidity

Advantages Mortgage replacement + liquidity

The replacement provides for the early repayment of the mortgage in progress at the lender and the stipulation of a new mortgage at more advantageous conditions for the borrower at a new credit institution.

Replacing the mortgage can be an interesting solution to distribute the repayment of the installments over a longer period of time, in this way you can lower the amount, even if it can lead to an increase in the expenditure, sometimes even expensive.

Even if the amount lent by the lender exceeds that of the residual debt, the tax benefits to deduct the interest do not change and are not lost.

As regards the premium of the property insurance policy, it is included in the total cost of the mortgage.

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