Most citizens of our country are forced to take a mortgage to buy a home. For many, this option of acquiring their own housing is the only option. Housing statistics claim that 7 out of 10 apartments are acquired through a mortgage loan. In this case, a logical question often arises: "How many times can I take a mortgage and what is needed to re-register it?"
Bank position
Initially, it was assumed that one client could not have more than one loan. However, due to the opening of new banks and increased competition, each financial institution seeks to get customers and offers several credit lines. The borrower has the right to obtain several loans, if the level of his income allows. However, in this sense, you should distinguish between ordinary consumer credit and a mortgage loan. The latter is issued under more stringent conditions based on the size of the debt and the length of time. Such applications are considered carefully, and the bet is not on collateral, but on the solvency of the client.
Common Reuse Loan Reasons
Some borrowers specify how many times you can take a mortgage for one person before paying off the original debt. There are several reasons for this:
- A person or family has a sufficient level of income, and age allows you to purchase another living space.
- Another reason to clarify how many times you can take a mortgage is marriage. In this case, the spouse acts as a co-borrower.
- The borrower uses the previously purchased premises as a source of income for commercial purposes and receives material benefits.
- The client of the bank specifies how many times it is possible to take a mortgage also if he plans to use the purchased housing for rental and income.
Property rental as a negative factor
The borrower does not have the right to lease real estate pledged by the bank without his consent. Otherwise, the bank will evaluate this factor as negative, and a re-mortgage will not be approved. If you specify how many times you can take a mortgage in order to rent a second room, then this issue also needs to be agreed upon in advance when you draw up the contract.
Design criteria
If you are thinking about how many times you can take a mortgage, you need to pay attention to several factors:
- The most important indicator is the borrower's income level. Each bank has its own customer debt ratio. After paying the monthly payment, the client should have 40-60% of the income.
- Work experience, traceable income and reliable employer. Banks trust their salary customers more. Banks are also favorable to organizations working in the public sector.
- "Cleanliness" of credit history. Another important factor that pays attention to the financial institution issuing a mortgage loan. First of all, the payment schedule and the lack of delays are viewed.
- The presence of the guarantor. Another prerequisite in order to re-issue a mortgage in most banks. Moreover, it will not be enough just to bring a person who is ready to vouch for you. The second person should not have active loans in other banks, and a “white” credit history.
- The initial installment of a mortgage, taken a second time, can reach up to 40% of the cost of the acquired premises and higher.
- The bank will necessarily take the collateral as a deposit. The past, already held by the borrower, is not considered as collateral.
If the first mortgage is not paid
From the point of view of the bank, wondering how many times you can take a mortgage if the first mortgage loan is not paid off is almost pointless. But there is still a chance to get approval. To do this, keep in mind a number of factors:
- both incomes, both of the borrower and the co-borrower, should allow making payments on a mortgage loan;
- a mortgage loan agreement is drawn up for a commercial type of real estate that will generate income for borrowers;
- The first mortgage was issued for the rental of real estate and income.
Exceptions
A financial institution may consider an application from borrowers individually. Families with an additional source of income or a wealthy co-borrower (for example, an individual entrepreneur) may well get approval from the bank. Separately considered a military mortgage.
Military mortgage
How many times can I take a military mortgage? Any employee has the right to issue another mortgage loan if, at the time of conclusion of the contract, the first debt obligation on the mortgage was paid off and the soldier was no more than 42 years old. Debt is repaid by borrowed or personal funds, as well as through maternity capital.
Steps to get a military mortgage a second time
The second time a military mortgage is issued in several steps:
- after paying off the first mortgage, the officer must write an application for the second;
- a participant in the program receives a certificate of NIS (funded mortgage system), an agreement is signed by the Housing Housing Mortgage Lending (Target Housing Loan);
- then you can start buying a new living space.
The nuances of the second military mortgage
Despite the fact that the government program for the military allows for a second mortgage, the conditions here will be different:
- The term of the second mortgage loan is shorter than the first.
- The second loan is issued for a smaller amount of cash compared to the first.
- After paying off the target housing loan, the money goes to the officer’s account - a participant in the funded mortgage system. After a while, the amount is enough for a down payment.
Military mortgage is paid by state funds. If the officer has the money to pay off the targeted housing contribution, the possibility of a re-mortgage becomes more real.
Military mortgage and civil loan
NIS does not prohibit issuing a military mortgage if there is a civil loan for the purchase of housing. The decision remains with the bank issuing the loan. A financial institution takes risks, therefore it puts forward a number of requirements:
- civil mortgage loan should be 80-90% closed;
- the officer has not reached the age limit in military service;
- the officer has no debt on other loans.
Second mortgage under an insurance contract
The second mortgage is usually issued under an insurance contract. Nothing is done separately. The clause is included in the mortgage agreement. The presence of insurance has a positive effect on the interest rate. Without it, the interest rate can be unbearable for the borrower. This applies not only to the apartment, but also to the room.
Documents
Documents required to apply for a second mortgage loan:
- original and copy of passport;
- copy and original TIN;
- income statement
One or more banks
How many times you can take a mortgage, of course, what about banks? Theoretically, you can apply for a second mortgage loan to another bank, and in practice it will be unprofitable for several reasons:
- if you did not have delinquencies in loans and a “white” credit history for the first mortgage lending in the first bank, this increases the chance of approval of the application in the same financial institution, since you have earned a good reputation as a borrower;
- the bank may make concessions to customers with a white credit history, offer a lower interest rate or other favorable conditions;
- servicing two loans in one bank is more convenient and saves the client’s time.
This list does not include situations where cooperation with the bank did not suit the client or another bank offers more favorable credit conditions.
When the answer is no
How many times in your life you can take a mortgage, the client decides. But if the bank refused to issue a loan, you can complete the transaction with the guarantor or co-borrower. In extreme cases, there is the possibility of contacting another bank.
Cons of re-mortgages
Legislatively there is no exact figure that says how many times you can take a mortgage for housing. But if you are going to draw up a contract with the bank again, you should take into account several points:
- The first mortgage is issued with possible participation in preferential lending programs (for example, "Young Family"), and bank employees select the most favorable conditions for the client. The second mortgage does not provide for participation in programs.
- A bank issuing a loan can put forward rather stringent conditions and a favorable interest rate.
Thinking about how many times you can take a mortgage, approach this issue rationally so that a new loan agreement does not become a problem for you.