Mortgage transfer
Mortgage transfer
Mortgage transfer can be more advantageous than new borrowing, as borrowing costs can be avoided. It is permitted to transfer the mortgage loan of the Housing and Construction Authority from a property that is being sold to another property owned by the seller, but the general rule is that the loan must be less than 80% of the mortgage room of the new property.
In special cases, such as due to the moving of the applicant from one business area to another, or his moving to a cheaper apartment, the Board of the Housing and Construction Authority is authorized to deviate from the rules on mortgage limits for real estate when transferring a mortgage loan, as long as the mortgage does not exceed 100% of the appraised value of the property. Such an exemption must be applied for separately to the HMS board, with an explanation stating the applicant's circumstances and the reasons for the application. In such cases, a credit rating must be carried out. The provisions regarding the maximum rateable value does not apply in the case of a mortgage transfer.
Please note that in the case of increased borrowing in parallel with a mortgage loan transfer, the applicant must have a credit rating. For each issued document, a fee is charged according to the tariff in each case. It is added to the loan and will be collected on its next due date.
Required accompanying documents with the application:
- An agreed, signed and certified acquisition offer for both properties together with sales record.
- Mortgage statements for both properties.
- If applicable, the status of loans that are secured as liens on the property to which the loan is to be transferred, i.e. before HMS's loans in the mortgage order or copies of new loans that have priority over HMS's loans in the mortgage order.
- In the case of increased borrowing at the same time, a credit rating is required and documentation must be submitted as if this were a new loan.