Find out here what the new mortgage law is like.
General aspects of the new mortgage law
Already in the middle of 2017 the mortgage regulations are taking certain changes in terms of relevant regulations. And there are already news about the case of the mortgage sector, it’s the new draft bill that will regulate the mortgage market.
What does it consist of? In systematic regulations that are expected to be approved within a few months.
Its main theme and objectives are basically based on the protection of consumers; reduce the legal drawbacks in this type of contracts; avoid the exaggerated number of lawsuits against banks as has been evidenced in recent times; as well as promoting and increasing the legal security of the financial segment.
Below we will let you know some more important aspects of the new mortgage law of 2017, which is expected to be approved in the upcoming months.
Changes in mortgage processes
The first thing that must be highlighted in this new mortgage law is that it intends that, in the process, the visit to the notary be made before signing.
Visit the notary before signing
The Ministry established that once the bank provides the documents to the interested party, it must take one more step: it’s a visit to the notary that will verify that the client complies with all the conditions of the contract and these must comply with the relevant legal regulations.
The notary also fulfills certain advisory functions. Since it can answer all the doubts that the client has regarding the mortgage and related documentation. It’s important to know that this procedure has no cost.
New sanctions and penalties to notaries and registrars
With the introduction of the aforementioned, it has also been agreed that there will be penalties for notaries and registrars who do not comply with their duties.
Changes in the interest rate for delay
On the other hand, the interest rate for delay will now be 9%. In the event that a payment is not met, the new interest price is 9%, which represents three times the legal price of money that is contemplated at 3%.
Actions relating to the imposed and benefits to the clients
Previously when a debtor fails to pay its payments of three months, the bank could cancel the loan. However, with the new mortgage law, there are a few minimum thresholds.
Minimum main thresholds
Now, the contract and the payments will be divided into two parts. In the first one, only the non-payment of the represented will be enough in 2% to activate the early expiration clause, and in the other half the minimum will be 4%. This represents a default of 9 months in the first case and 12 in the second.
Changes in the specifications of the contract
They also intend to make changes in terms of contract specifications. Specifications of the type of person who will pay what, that is, the new contracts must contemplate who will be responsible for the payments and expenses (whether the customer or the bank). Although the truth is that contracts require placing who will be responsible for these expenses, it’s not an obligation to be the person who must pay.
Banks can’t force customers to make additional service payments if they don’t want to. The new mortgage law aims for banks to offer products that benefit each particular client.
These are the general aspects that will be seen in this new mortgage law of 2017. Which proposes to be a change in the mortgage system. What do you think of these changes? Share your opinion with us in the comments below!
- 1 General aspects of the new mortgage law
- 2 Changes in mortgage processes
- 3 Actions relating to the imposed and benefits to the clients