What is a deed mortgage

A deed morgate, in dutch called a hypotheekakte, is a document that records the terms of a mortgage. It is a legal document that is used to secure a loan. The mortgage deed is drawn up by a notary and registered in the mortgage lender's public register.

Who prepares mortgage deeds?

Mortgage deeds are prepared by a notary and registered in the mortgage lender's public register. This ensures transparency and expenses, so everyone can see the details of the mortgage. The notary makes it clear what agreements and conditions apply to the mortgage and ensures the rights and obligations of both parties. Learn more about notary costs for mortgages.

When is the mortgage deed drawn up?

A mortgage deed is created as soon as a mortgage is taken out on a property. This often happens when buying a property, where the buyer takes out a mortgage with a bank or other financial institution.

The mortgage deed serves as the official proof of the mortgage and contains all the terms and agreements between the mortgage and the mortgage lender. The mortgage lender is therefore essential that this deed is drawn up before the mortgage is established. Check out our notary cost estimates to understand the typical fees involved.

What is a deed of mortgage?

In a deed of mortgage, you will find important information such as the amount borrowed, the interest rate, and the repayment period. It also contains details about the collateral, in this case, the home. The deed defines the mortgage lender's rights if the payment fails to fulfill its payment obligations.

Often, the deed also specifies the consequences in case of late payment or failure to meet other obligations. It is therefore very important to read the mortgage deed carefully before taking out a mortgage.

Importance of the Mortgage Deed

Thus, the deed mortgage is in the Netherlands very important when taking out a mortgage. It provides security for both the mortgage lender and the mortgage taker. The deed provides a transparent overview of the rights and obligations of both parties and includes all the details of the legal agreements.

Different Deeds

When buying a house, you'll encounter several important legal documents:

• Purchase deed - The initial agreement between buyer and seller
• Deed of transfer - The final document transferring ownership
• Conclusion deed (mortgage refinancing) - For refinancing your existing mortgage