What is mortgage subrogation?
The subrogation of a mortgage consists in amending one or more of the parties to the agreement, for example if there is a change in the borrowers or a change in the financial institution or bank. There are three types:
Change of bank
This is what is known as a creditor subrogation. It consists in moving your mortgage from one bank to another. The reason is usually to improve the term, spread, etc.
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This consists in amending the parties to the mortgage but keeping it at the same bank. A common scenario for this type of subrogation is when someone buys a property and takes over the seller's mortgage.
This consists in moving a mortgage from one bank to another, usually to improve the term, spread, etc.
Subrogation to the developer's loan
This is when the homeowners on a housing estate subrogate their mortgage to the housing developer's initial loan.