In recent weeks the mortgage and banking market has been revolutionized by the regulatory changes of the Government. The AJD of the new mortgages will be paid by the bank, as approved by a Royal Decree Law the Executive.
It has been established by the Royal Decree Law that the bank must pay the AJD for the mortgages. In the adjustment of the mortgage law the banks are expected to pay, the expenses of the deed and the land registry/notary fees. The client will only have to pay the appraisal of purchasing the house and the requested copies of the deeds.
With the new law inforced the purchaser will incure a saving between 85% and 93% of mortgage expenses.
The final text of the regulations continues to be negotiated and continues to include important changes. For example, the time when the bank can foreclose and seize the home due to non-payment will be delayed. This is what is known as the early termination clause, a provision that allows the entity to foreclose the mortgage at the time the client stops paying the mortgage payment. In this way, the bank can only activate this clause if the mortgagee has stopped paying more than 12 mortgage payments or an amount equivalent to 3% of the loan during the first half of the mortgage life. After that time, the term is 15 monthly payments or 7% of the loan amount.
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