LOW INTEREST RATES AND LOAN TRANSFERS: SOLUTIONS TO THE AFTERMATH OF THE PANDEMIC

Do I need to re-register the property when transferring a mortgage loan?

No. Only a promissory note endorsement is required, which is handled by the bank purchasing the loan from the institution that currently holds the mortgage. The original mortgage bank will still appear on the property deed, but the promissory notes—the legal backing documents—will be held by the bank purchasing the loan.

What costs are involved in transferring a mortgage loan?

The costs associated with this process include property appraisals, which depend on the commercial value of the property. If a title study is required, the cost depends on the bank purchasing the loan and typically ranges between COP $78,000 and COP $250,000 (some banks do not charge this fee).

How long does the process take?

The estimated time frame is usually between two (2) and three (3) months, largely depending on the bank handling the loan transfer.

What is the process like?

According to our mortgage loan and residential leasing expert, the process begins with a credit analysis. This means having a good credit history, not being reported to credit bureaus, maintaining low debt levels, and having stable, demonstrable, and legal income.

Once the loan is approved, the appraisal and title study fees are generated, and the client pays these costs. The bank then carries out the appraisal and title study. Once everything is completed, the bank purchasing the loan pays off the existing mortgage, and the client is released from the previous bank. From that point on, the debt belongs to the bank that completed the loan transfer.

This is a fast and cost-effective process that allows for significant savings, considering the amounts and long repayment terms of these loans. There are always options to save money when buying an apartment for sale in Medellín and to improve monthly cash flow. The first step is to research and explore alternatives, especially during times like these following the pandemic.