Loan with mortgage guarantee: what are the advantages?


Even when you have significant assets,  it is not always easy to have cash available, and therefore to be able to finance a project quickly if necessary.

Enter the heritage:

  • real estate, whether a primary, secondary, or rental residence;
  • assets of the financial asset or pledge type (life insurance, for example).

The goods that make up your assets can be useful to you to realize your projects, whatever they are:

  • make a donation;
  • subsidize atypical projects not financed by traditional banks (purchase of a vintage car, a motorhome, financing a world tour, etc.);
  • settling inheritance tax;
  • reinjecting money into a business;
  • make a contribution to the partners’ current account;
  • settle tax debts.

So, how can you use your assets to carry out your projects?

Mortgage loan: the solution to liquidate your wealth

The solution to making your real estate liquid without selling it is the mortgage cash loan.

What is the Mortgage Cash Loan?

The loan, or credit, of mortgage cash, is a loan that makes it possible to obtain a sum of money by being backed by a property or a financial asset  :

  • for a specific use, for example, the purchase of real estate;
  • to have cash  (allocated or not, depending on the lending partner).

The asset against which the loan is backed may be real estate, or the pledge of a financial asset, i.e. the pledging of a financial product to the lending institution in the event of default of repayment.

Against this first mortgage (on real estate), you can borrow up to 50 or 60% of the value of the property.

To note

The most common cause of collateral is that of his life insurance

A mortgage is a cash flow opportunity that can be considered by individuals, business leaders, or the liberal professions. The mortgage cash loan should not be confused with the purchase of classic credits.

That being said, if you have outstanding consumer loans, you can include them with your mortgage cash loan. We then speak of buying back credits with a mortgage loan.

This will allow you to see more clearly in your budget and, under certain conditions, to reduce the number of your monthly payments.

Loan with mortgage guarantee: what are the advantages?

The mortgage cash loan has many advantages.

It makes it possible to consider the financing of real estate, even in “complex” cases:

  • if you cannot find traditional financing from banking establishments  ;
  • if you are over 70, have health problems, and have trouble finding affordable borrower insurance.

But that’s not all :

  • The mortgage cash loan makes your real estate assets liquid. You thus have the possibility of continuing to build up your assets by making, for example, a new acquisition that you would not have been able to finance with a conventional loan.
  • The repayment terms of a loan with a mortgage can go up to 15 years (180 months).
  • The repayment terms are flexible: the mortgage loan can be repaid in amortizable or in fine.

Mortgage cash loan insurance is not compulsory. In reality, it is difficult to obtain a loan without insurance. It is therefore strongly recommended.

In the absence of borrower insurance, in the event of death, the capital remaining due will constitute liabilities in your estate. Your heirs will then have to continue paying the loan or sell the property to repay the credit.

By Master James

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