In most new developments clients will find a what´s called a “developer´s mortgage” to assist them with the purchase of a property, which basically means two possibilities: - Mortgage subrogation to an existing developer´s existing mortgage.
- Special mortgage package for a certain new development.
One of the most important aspects of a mortgage subrogation from the developer is to check the costs involved in subrogating to this type of mortgage, as when clients look at the conditions these always seem very favourable, but clients need to analyse the overall cost. Some developers will also propose a special mortgage package which term´s were previously negotiated the bank in case the clients are not interested in subrogation. These mortgage packages are designed to facilitate the purchase of the off-plan property. As mortgage conditions vary from development to development, it is very difficult to come to a general answer and each particular case has to be analysed individually. Pro Tip:  Since developer mortgages are normally at least several months old and conditions are always changing in the financial world, it’s always a great idea to present the mortgage subrogation offer or the mortgage package offered by developer to other banks or financial advisors to learn if and how they can improve the rates.