When you buy a house, the deeds fly around your ears. Fortunately, the notary will draw them up for you. One of those deeds is the mortgage deed. If you are allowed to sign it, you will almost have your dream home, because the mortgage has already been finalized!
What is a mortgage deed?
As soon as you have signed the mortgage offer, the mortgage deed will follow. We often refer to this as the elegant version of the quotation. The mortgage deed is the final agreement that you conclude with the lender and is always drawn up by a notary. All the provisions of your mortgage are included in this deed. In addition to all data, you will also find all final agreements in it.
What is in a mortgage deed?
- Borrower: who takes out a mortgage? The mortgage deed starts with stating your personal details as a mortgage lender. The details of any partner or co-debtor are also listed.
- Lender: who is the mortgage lender? This can be a so-called institutional investor, such as a bank, insurer, pension fund or coordinating party. Increasingly, private investors are also mentioned in the mortgage deed. This is also the case with the family mortgage. As a mortgagee, your own company can also be involved, for example with the mortgage through your own BV.
- The product: what type of mortgage have you taken out? Some banks offer one type of mortgage, others have several products with different conditions.
- Mortgage sum: how much money will you borrow?
The original loan amount is stated in the deed. The amount of the mortgage registration is also included. - Repayment form: are you going to repay during the term?
Your mortgage deed states the form of repayment: are you going to repay linearly or annuity? - Monthly payments: what will you pay off each month? This depends on the repayment form and the term.
Term: after how many years must the entire sum be repaid? The term of a mortgage is usually 30 years. - Interest: how much mortgage interest will you pay?
- Fixed interest period: the agreed time during which the agreed interest applies. The level of the interest is related to the fixed-rate period. This is different from the term of the mortgage.
- Extra repayments: information about compensation for breaking the interest contract and repaying without penalty.
Conditions regarding the use of the collateral: such as the rent clause. - Your mortgage deed may also state NHG: this is a clause about the National Mortgage Guarantee.
New mortgage deed when refinancing mortgage
Is your mortgage transfer meaningful? As soon as you have received a binding offer, a new mortgage deed will also have to be signed at the notary. The notary will request a repayment note from your current lender. The old deed will then be canceled and the new mortgage deed will be registered by the civil-law notary.
Open the champagne!
After you have been to the notary to sign the mortgage deed, you also sign the the deed of delivery when you have bought a new home. From that moment on, the house is in your name and you are officially the owner. The old deed of the previous owner is crossed out in the Kadaster and the new one is signed and registered. The closure is then completely official. The champagne may be uncorked! Know of course that you can always contact Bliss with questions. We are also happy to discuss the (draft) mortgage deed with you in advance. Schedule a free call appointment whenever it suits you.
