What is the difference between a mortgage and a home loan?

In brief, the mortgage loan can also be secured by mortgages on other properties, whereas mortgage credit must be secured by a mortgage on the property for which the loan was granted. 😉

What is mortgage credit?

Mortgage credit is a loan for the purchase, construction or renovation (modernisation) of a dwelling. 

In order to secure the loan repayment obligation resulting from this loan, the loan can also be secured by another dwelling. 🏡

In order to take out a loan from Banca Transilvania, you need to meet the following basic conditions:

❶⠀To be employed indefinitely;

❷⠀You must have been at your last job for at least 3 months;

❸⠀You must have a net, permanent, reliable income;

❹⠀You have a minimum down payment of 20%.* of the purchase price of the home.

*The 20% advance must be deposited in cash in account at Banca Transilvania or it can be proved by an account statement or payment order.  

Disadvantages: the interest rate can be changed depending on financial market conditions 🙁

What happens if a customer can no longer pay the mortgage payments?

If you are no longer able to pay your loan instalments, the Bank will try to reach an amicable settlement so that you can recover your debts. 👍

Otherwise, the bank will proceed with the enforcement procedure. 😥

What is mortgage credit?

Mortgage credit is a loan for the purchase, construction or renovation (modernisation) of a dwelling. 

In order to secure the loan repayment obligation resulting from this loan, this type of loan must be secured by the dwelling in question. 🏡

Benefits:

❶⠀Flexibility ➭ by accepting a wide range of income (from wages, pensions, daily allowances, rents, dividends, self-employment, annuities, intellectual property rights, foreign earned income);

❷⠀Without supporting documents ➭ for amounts up to €35,000, you can modernise / consolidate / rehabilitate / extend / complete your home with simplified documentation (affidavit). 

You can only get one such credit with simplified documentation, and for additional amounts, supporting documents must be submitted).

❸⠀Protection at affordable costs ➭ Life insurance is recommended but optional and property insurance costs around 0.10% of the value of the insured property.

What happens if a customer can no longer pay their mortgage payments?

If you are no longer able to pay your loan instalments, the Bank will try to reach an amicable settlement so that you can recover your debts. 🙂

Otherwise, the Bank will proceed with the enforcement procedure. 😞

Binding clauses in mortgage contracts:

➤⠀ the bank is obliged to provide the customer with a written offer containing all the terms and conditions of the contract and its validity period 10 days before signing;

➤⠀the customer only pays the costs of drawing up the credit documentation and setting up the mortgage;

➤⠀cannot be made conditional on other banking services;

➤⠀the details of performance in the event of default must be set out in the contract.

Bottom line:

Both a mortgage and a home loan can be taken out for the purchase, construction or renovation (modernisation) of a dwelling, the difference between the two being the property pledged as security. 😮

If you are thinking of opting for a mortgage or home loan from BT we welcome you to our website, and if you need more details we look forward to a friendly chat in any of our BT branches. 🤗

❗⠀By the way, if you're thinking of getting a credit:

➤⠀you can calculate your monthly instalments online in the BT credit simulator;

➤⠀and then find out over the phone if you qualify for the desired amount. 😃