As described in the bill's explanatory letter, the changes establish the simplified refinancing procedure for mortgages and aligns other provisions to this procedure.
Currently, in LTH, refinancing of housing loans is not subject to special regulation and this process is understood as obtaining a new loan and early repaying the existing one.
With the bill proposals, the borrower would no longer need to contact the original creditor for a loan balance certificate, consent to pledge the real estate with mortgage.
The process would be free of charge for the consumer in most cases, i.e. the initial and new lenders could not apply any fees and other payments set by themselves.
It would be the new lender that would have to bear notary and mortgage costs.
Such a simplified refinancing process would be applied in cases where the balance of the refinanced housing loan with relevant mortgaged real estate, would not increase.
And the loan's remaining duration would not be extended, there would be no delay in loan payments during the refinancing and no other signs re borrower's difficulties.
Effectiveness
The law, with some exceptions, is planned to enter into force on May 1, 2025.
Oct. 2024 Law Passed
On Oct. 17, 2024, LTH MoF said the simplified housing loan refinancing project was adopted at the Seimas session; people can change the bank that granted the loan.
In a simpler way, without additional costs and improve the loan's financial conditions.
The law enters into force on Feb. 1, 2025, so people will be able to use its options.
Regulators
LTH MoF; LTH PRL
Entity Types
Bank; CNSM; MG Orig; MSB
Reference
PR, 10/17/2024; Bill XIVP-4127, 9/12/2024; Law XII-2769
