Mortgage subrogation fees

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When you sign a mortgage you are not conditioned to continue with the same bank until you finish paying for your home, you can improve your mortgage at any time you want. Changing the bank mortgage or even changing the owner of the mortgage loan is possible. Of course, carrying out a mortgage subrogation involves a process and commissions that you will have to pay. In this article we explain it to you.

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What is a mortgage subrogation?
According to the RAE, subrogation means “to substitute or put someone or something in the Chinese Overseas America Number Data place of another person or thing.” Therefore, a mortgage subrogation consists of a change of debtor (mortgage holder) or creditor (changing the bank mortgage).

A subrogation involves a change in the conditions of the mortgage , and is a decision that can be made at any time during the life of the mortgage loan. Of course, it must be done with the mutual agreement between the mortgage holder and the creditor bank. And, in addition, this process entails a series of expenses that you must take into account.

Types of surrogacy
As we have mentioned previously, a mortgage subrogation can occur due to a change of debtor , that is, of the holder of the mortgage, or of creditor, which consists of changing the bank mortgage.

Debtor subrogation can occur for different reasons, such as in the sale of a house, when the mortgage has not been paid. In this case, the buyer must assume the remaining debt. According to the Civil Code, the creditor will be the one who accepts or rejects the change of debtor. To do this, you must analyze the buyer's solvency to decide whether to sign a mortgage loan with him.




Creditor subrogation occurs , mostly, due to dissatisfaction with current conditions, to improve them by changing the banking entity. For this reason, it is important to continue comparing offers to see if there are better conditions than the ones you have. It can be done to change the interest rate, that is, change from variable to fixed rate, or vice versa; change the reference index, extend or shorten the repayment period, etc.

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What are the costs of mortgage subrogation?
Carrying out a mortgage subrogation has its advantages and disadvantages. One of the main drawbacks is that it is not a free process, but you will have to pay a series of expenses:

Processing expenses. Which include notary fees, the Property Registry, or agency fees.
Surrogacy commission expenses. When changing the bank mortgage, it is very possible that the bank will charge us a commission. These commissions are regulated by the Mortgage Law and cannot be higher. Below we explain it in more detail.