2024-03-23 23:12:01
With a mortgage replacement, a person can continue paying for their home in better conditions. This way you can request it at Biess.
A mortgage replacement is a refinancing that allows a person to transfer a debt to a financial institution other than the one that granted the current mortgage loan.
The objective of this refinancing is to obtain better credit conditions with the new institution, for example, more time to finish paying the loan, lower installments or better interest rates.
The financial institution that approves the mortgage replacement cancels the debt with the other bank, while the client agrees to pay the new loan.
The Bank of the Ecuadorian Social Security Institute (Biess) offers this credit product to members and retirees of the IESS. The previous credit must have been requested for the purchase, construction or remodeling of a home.
Members without a dependency relationship and volunteers will be able to access the mortgage replacement in a “solidarity manner”, that is, by pre-qualifying with their spouse or partner, who must be a member with a dependency relationship or retired from the IESS.
There is also a reverse mortgage substitution, that is, when the member or retiree wants to sell the home they bought with Biess credit, and the future owner has a qualified credit with a private entity.
In that case, Biess assigns the mortgage to the other bank. Biess has an agreement with nearly 60 financial entities in the country, including banks and cooperatives, for mortgage replacement.
Conditions
These are the conditions granted by the Biess for a mortgage replacement:
Financing
The maximum financing amount is USD 460,000. The commercial appraisal of the property must be updated and must be equal to or greater than 125% of the balance that the Biess member or retiree must pay.
For example, if a person applies for a loan for USD 100,000, the commercial appraisal of their home must be at least USD 125,000.
Debt capacity
Applicants may commit up to 40% of their net income, which corresponds to the difference between gross income, debts reported by the IESS or BIESS, debts reported to the Credit Registration System by the Credit Information Bureau and the last personal contribution to the IESS. For affiliates, the average of the last 13 months of salaries reported to the IESS is considered gross income. And for retirees, the last pension contributed by the IESS.
Term and interest rates
The term is up to 25 years, depending on the maximum age of the applicant, which must not exceed 77 years. The annual effective interest rate for mortgage replacement ranges from 7.22% to 9.49%, according to the term and amount. The rate is reset every 180 days.
Amortization system
Policyholders can select the amortization table that best suits their needs in their online credit prequalification application. This can be fixed installments (French system) or decreasing installments (German system, in which the debt capital is progressively lowered).
Step by step to apply
To request a mortgage replacement in Biess, you must follow the following steps:
Go to www.biess.fin.ec.
Within the Mortgages tab, select the Mortgage Substitution option.
Check Request replacement and enter your Biess ID and password.
Fill out the online credit prequalification application. When finished, print it and take it to the Biess service balconies, along with the documents required by the entity.
The Biess will carry out an analysis of the payment capacity of the member or retiree, without taking into account the debt that had been acquired with the previous institution.
After the application is submitted, it takes about 60 days for the entity to approve and deliver the first disbursement.
Requirements for affiliates
These are the requirements that an active member must meet to access prequalification for a mortgage replacement:
The member must have 36 contributions in total.
Members with disabilities must make at least 18 monthly contributions, not necessarily consecutive.
Affiliates with a dependency relationship must have at least 13 consecutive contributions.
In the case of members without a dependency relationship and voluntary members, at least 36 consecutive contributions, not necessarily with the same employer.
Not have dividends pending payment with the IESS or Biess, in any of their credit products.
If you are a legal representative of a company, you should not have pending obligations.
Not be more than 77 years of age. The affiliate’s current employer must not belong to the harvest or to the Peasant Social Security. Not having a current mortgage loan acquired under the purchase or portfolio rediscount modality with the IESS or Biess.
Do not have any application in process for any type of mortgage loan with Biess.
Not having a line of credit for home construction in progress or the amortization table of the mortgage loan granted is inactive.
Not have amounts pending payment for implementation expenses in canceled Mortgage Loan applications with the Biess. Not being registered in the IESS database with a degenerative disease.
Requirements for retirees
Retirees must meet these requirements to prequalify:
The old-age pensioner or retiree must be receiving the pension granted by the IESS.
Not have overdue obligations with the IESS.
Not have dividends pending payment with Biess, in any of its credit products.
Not have a current mortgage loan, acquired under the purchase or portfolio rediscount modality with the IESS or Biess.
Do not have any application in process for any type of mortgage loan with Biess. Not having a line of credit for home construction in progress or the amortization table of the mortgage loan granted is inactive.
Not have amounts pending payment for implementation expenses in canceled mortgage loan applications with the IESS or Biess.
Not have current obligations as guarantor or guarantor for mortgage loans for voluntary members.
Not being registered in the IESS database with a degenerative disease.
Source: PRIMICIAS