Until the last day of the cooling-off period, the applicant can cancel the mortgage that he wished to contract. But once the document is signed and returned to the bank, is it possible to reverse its decision?
What does the legislation say about applying for a mortgage?
The law is very strict in this area. When a bank issues financing conditions relating to real estate, it does not change them, for 30 days. The claimant has a 10-day cooling-off period. During this period of time, it is completely free, before the term, to refuse these conditions and therefore, to cancel the loan. The refusal must, of course, be notified to the bank.
Beyond the deadline (11th day) and especially if the document relating to the mortgage application has been signed (therefore accepted) and given to the bank, cancellation may be difficult. Because for the bank, once the file is signed, it is no longer a proposal but a loan contract. The applicant is therefore engaged.
Is it possible to cancel the mortgage loan contract?
Whether you wanted to buy an old property or have it built, the solution to cancel the loan agreement remains the same. The mortgage is attached to the purchase of property; what is stipulated in the sale agreement (suspensive clause), if the sale is not made, because of the seller, the loan becomes de facto, lapsed. Likewise, a problem with the construction can lead to the cancellation of the financing solution.
Delays in the sale or construction of a property, which would exceed the period of 4 months, after the signing of the loan contract may also cancel the said contract. On the other hand, the potential buyer will probably have to repay the sum lent by the bank, with interest, over this period (what is called the pro-rata temporalis).
Finally, to finance real estate, it is not uncommon for a person to mobilize several aids which, on the loan contract, appear as borrowing lines. If one of the financing lines (guarantee costs, Zero Rate Loan, Action Housing loan) were to give a refusal to the applicant, the loan may also be subject to cancellation.
How can you get help if you have questions about buying real estate?
Have you applied for a bank loan to finance real estate, but have questions? Why not seek the help of a broker? A financing professional, he can answer any contentious questions you may have regarding your loan request.
Depending on the information you give him, he will be able to reassure you. Did you know that this professional can find for you the bank that will offer you the most attractive offer for your real estate project?
Legal, financial information, everything related to credit (whether for consumer, real estate or loan consolidation), falls within its area of competence.
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