The mortgage subrogation first home interest deduction is a significant savings option. In fact, the contract holder has the possibility of reducing the weight of the installments by taking advantage of particular tax advantages.
What can be deducted from Lender Bank
The mortgage subrogation first home interest deduction responds to precise rules, which it is good to have in mind when filling in the forms for the tax return.
The main point to remember in these cases is the possibility of deducting 19% of the interest expense, as long as the mortgage to which they are linked is aimed at the purchase of the first home for himself or his family.
First home loan: other deductible expenses
When it comes to mortgage aimed at the purchase of the first home, it is good to remember that it is possible to deduct not only interest expense, but also all ancillary costs, such as notary fees.
Considering this rule is not necessary in the event of a subrogation, since in these circumstances there is only the possibility of subrogating the mortgage before the home deduction of interest, since the other expenses are borne by the lender to whom the mortgage is transferred.
How the deductions change when the contract is transferred
The subrogation of the loan provides for the transfer of the loan contract from one credit institution to another, with the consequent possibility of changing some conditions of the plan, such as for example the rate and the duration.
What to know about mortgage subrogation first home interest deduction? How to regulate from this point of view? In such situations it is good to remember that the Lender Bank deductions continue to be valid exactly as in the case of the main contract.
What happens in the event of replacement?
When you take out a mortgage you need to pay attention to numerous details. The same is true when opting for replacement or subrogation, situations in which it is good to keep several aspects under control, including the question of the deduction of interest expense.
In the event of a loan replacement and consequent disbursement of additional liquidity, it is no longer possible to speak of a subrogation of a mortgage before the home deduction of interest. For what reason? For the simple fact that the necessary condition to be able to take advantage of the deductions is the maintenance of the original mortgage and the amount of the residual debt.
What has just been specified helps us to understand that the borrower who decides to sign a “subrogation + liquidity” contract loses any interest deduction right on the original loan, but obviously has the possibility to take advantage of tax advantages on the new mortgage.
The deduction of interest – regardless of the choice of the subrogation – can only be obtained if the property for the main residence is designated within 12 months from the formalization of the deed of purchase.