The mortgage landscape is very varied. In light of this aspect, it is advisable to read in depth before choosing a product. This means, for example, looking for all the specifications relating to the Government Agency mortgage rate.
Government Agency mortgage rate, amounts and beneficiaries
Before explaining the peculiarities of the Government Agency mortgage rate, let’s see what are the characteristics of the mortgage plan proposed by the institution.
The Social Institute mortgage loan allows you to access credit for various objectives, ranging from buying a house to works to build a parking space. Of course, the amount that can be requested also changes. In the first case we speak of 300 thousand USD, in the second of 150 thousand USD (the figure can never exceed 40% of the value of the property), in the latter of 75 thousand USD.
In any case, the loan amount cannot exceed the value attributed to the property by the technicians appointed by the Institute. The same applies to the purchase price of the house, as stated in the deed of sale.
But who are the beneficiaries of the funding? The Social Institute mortgage loan is accessible by those registered for the unitary management of credit and social benefits. This is in fact the Social Institute credit fund through which the social security institution grants the economic benefits in favor of the former Government Agency members.
Both public servant and retired workers are among the beneficiaries.
How to apply for an Government Agency mortgage
Another step that must be considered before going into the detail of the Government Agency mortgage rate are the methods of application.
Customers interested in these plans have the opportunity to make the request exclusively online and in the time windows indicated by Social Institute. It is possible to submit the application for funding from 1st to 10th January, from 1st to 10th May and from 1st to 10th September of each calendar year.
We remind you that these mortgages, regardless of their purpose, are accessible by the members of the Unified Management both workers and pensioners. In the first case, a permanent employment contract is binding, while in the second, it is essential to be enrolled for at least one year.
The required documents
We continue to talk about some preliminary subjects to the specifications on the Government Agency mortgage rate and remember that to access these plans it is necessary to present all the required documents, among which appears the substitutive declaration of notary deed, which the customer must complete in all its parts.
This phase must be followed with particular care, as the incorrect compilation or the presentation of an incomplete documentation imply the exclusion of the request, even if the client is in possession of all the requirements for the mortgage.
Complete requests are reviewed and accepted based on the availability of funds. In the event of a shortage, a ranking is carried out, which takes into account criteria ranging from the client’s income to the number of family members.
News Government Agency fixed and variable rate mortgage
Now we can talk about the Government Agency mortgage rate, remembering that customers can choose between two very competitive alternatives, much lower than those proposed by banks. The first is the fixed rate mortgage, the second, however, is the variable rate mortgage.
The Government Agency mortgage rate is defined by Social Institute which periodically changes the Tan values applied to subsidized loans. Specifically, the social security institution has recently changed the rates applied.
Change that occurred with Presidential Resolution No. 89 of 25 May 2017 and takes effect from September 2017. The above determination led to a change in the rates applied to mortgages with fixed interest. Loans to which a Tan calculated on the basis of the LTV method, ie the loan to value, has been applied since the beginning of September. Unlike what happened until recently, therefore, the Tan for fixed rate mortgages varies in relation to the ratio between the value of the mortgage and that of the property.
On the other hand, the interest applied to variable rate mortgages remained unchanged. In this case the Tan must be calculated on the basis of the 6-month Euribor, increased by 200 basis points and calculated over a period of 360 days.
The new values of the Government Agency 2017 mortgage rate are shown in the table below.
The ancillary costs
Finally, we remind you that in addition to the interest rate, the borrower must also face the administration costs. Charges that are calculated with the application of a rate of 0.5% on the gross amount of the loan. Administrative expenses are withheld in advance by Social Institute which provides the loan net of these costs.
For more information on Social Institute ex Government Agency mortgages, please consult the official website of the social security institution. Those who wish to carry out a mortgage simulation can take advantage of the special online service, also on the Social Institute portal.