How much it costs to take out a mortgage in colombia 2021

Autor: Redacción 16 agosto 2021, 6:04ÍIndex de contenidos When we finish paying the mortgage, the house is finally ours and we no longer have to pay any more installments to the bank. However, most people believe that when we stop paying the mortgage it disappears by itself, although this is not the case.

For the property to appear ‘free of encumbrances’ it is necessary to cancel the mortgage. It is not mandatory, but it is recommended. If you have already finished paying your mortgage, or if you are about to do so, we will tell you what alternatives there are and the steps you should take.

The first thing we will notice when we finish paying the mortgage is that we no longer have to pay the monthly installment charged by the bank. However, this does not mean that the mortgage disappears by itself. In fact, the information relating to the mortgage will continue to be kept by both the bank and the Land Registry.

How does this affect me? Well, although the debt contracted with the bank has been paid in full, in the records the property will still appear as mortgaged. That is to say, it appears as having a mortgage. This means that, for example, if we want to sell it, the property will not appear as “free of charges”.

Read more  Who owns Glastonbury farm?

Mortgage lifting bbva colombia

In this page we will talk specifically about the third option, that is to say, about how to record in the Property Registry that the mortgage loan has been paid in full so that it eliminates that burden on your home.

When you take out a mortgage, the bank registers it as a charge on the property in the Land Registry. If you want to eliminate this charge after paying off the debt, you will have to process the cancellation of the mortgage. This can be done by an independent agency, by the bank’s agency or on your own:

One way to cancel the mortgage to leave your home unencumbered is to entrust the procedures to an independent agency. That is, an agency that does not work directly with your bank (or with the buyer’s bank, if you are selling your home).

This agency will take care of all the paperwork, which will save you time and travel. Logically, they will charge you money for their services, but normally they will charge you less than what it would cost you to hire a bank’s agency.

Mortgage Payment

According to the Association of Banks of Mexico or ABM, the cancellation of a mortgage consists of proving in the RPP, by means of a deed, that the loan has been paid off and is free of encumbrances.

While each banking institution has different policies and procedures, we approached a couple of experts to explain the general procedure. Adolfo Loria Gracia, director of Mortgage Products at Banco Santander, and Gonzalo Palafox, director of Mortgage Business at BBVA Bancomer, detail the steps to follow, which by the way you can already do electronically.

Read more  What is Hcpc in physiotherapy?

Choose a notary to process the new deed. It can be with the same notary you hired for the first deed. In fact it is the most advisable, because it speeds up the process, since all the documents are in the notary’s office.

Contact your bank by phone to inform that your loan has been paid off, and you want to initiate the mortgage cancellation. The bank executives will provide you with an email to which you should send the following information:

Mortgage cancellation deed

The cancellation of the mortgage deed is a procedure that must be done to leave your home free of encumbrances. And to carry it out, you will have to pay an average cost of about 1,000 euros, although it may be lower if you do not hire an agency. These are the costs associated with the cancellation of a mortgage:

Average price of 250€. This is what the registrar charges for eliminating the burden of the property. Their fees are regulated and depend on the original amount of the loan, although their minimum cost is 24 euros.

No. Although this operation is subject to the tax on documented legal acts (IAJD), it is exempt of its payment (except in the Basque Country for mortgages for non-habitual housing). However, in order to register the liquidation in the Treasury, you will have to present the model 600 of the IAJD duly completed, a document that accredits that the cancellation has been deeded.