To know how many types of mortgages exist, we need to consider the purpose, or the purpose for which the money is borrowed. Normally we consider a mortgage as a loan for the purchase of a property, or at most a restructuring. The loan is granted for the purchase of a first home or any other type of home. Depending on the type of property you intend to acquire, some features of the loan (interest rate, guarantees) and tax regulations (registration fees) will change. This is therefore a first distinction to be taken into consideration.
The big differences, however, concern above all the purposes connected to the disbursement of the loan. We list the most common types of mortgage:
Purchase of the property (first or second home)
The classic loan for the acquisition of a home concerns the first home. Among the tax advantages of this type of loan, we also point out the possibility of deducting the interest paid paid on the loan. The purchase mortgages of the building can also cover 100% of the value of the house, but in reality very often the threshold to which the bank goes is that of 80%, then asking for a sort of advance to the borrower. However, no tax deductions are planned for the second house.
Restructuring of the building
With this financing it is possible to pay for the renovations of a building used for residential purposes. In this case, it is not uncommon to be able to finance up to 100% of the cost of the works, but there are no tax deductions. The payment methods may also vary: the amount can be granted in a single payment or progressively, following the progress of the work.
Completion of construction
It is only available if the building you want to expand or complete has already been built for 60%.
this is a form of financing that allows the borrowing of considerable amounts, using the property as a real guarantee of the loan. The peculiarity of this loan is that the money is not tied to a specific use, but can be spent freely. The amount obtainable depends on the value of the house: the banks can go up to figures between 50% and 70% of the value of the property.
With this formula it is possible to merge more loans to be repaid in a single repayment plan, so as to pay only one installment at a time instead of many. Mortgages can also be the subject of this operation. Sometimes, it is also possible to obtain additional liquidity.