You can draw money from your mortgage in one lump sum or in stages, but always only without cash. This means that the bank will transfer part or all of the agreed amount to your bank account.
When you say mortgage
A mortgage is a long-term loan secured by a mortgage on real estate. It is usually used to purchase a property or to build or renovate a property. However, you can also take out a mortgage to settle property, refinance a mortgage, pay back money you have invested in building, buying or renovating, or to buy an apartment or house to rent out.
Like other loans, a mortgage must be repaid properly and on time. The amount of the mortgage payment is agreed in the contract and consists of two parts (interest and interest).
Procedure for taking out a mortgage
As mentioned above, you can take out a mortgage in one lump sum or in stages, but always in cashless form. The drawdown period varies depending on what you use the money for.
- When you are buying an existing property, the bank will transfer the money to the seller’s account or to the solicitor’s escrow at the same time.
- In the case of self-build, property construction or property renovation, the bank releases the funds gradually.
Did you know that when you get a mortgage, you have to draw it down within a certain period of time? If you buy a property, you have 12 months to transfer the money to the buyer, or 24 months from the signing of the loan agreement if you renovate, build or construct the property yourself.
The gradual drawdown of the mortgage is related to the underdrawing of the mortgage and also to the extension of the mortgage
Have you managed to buy or renovate a house or apartment cheaper and you haven’t used up your mortgage? Then we are talking about underwater mortgage. If, on the other hand, the mortgage is about to run out and the property has not yet been built or renovated, you can ask the bank to extend the mortgage for up to 6 months.