Fixed-Rate Mortgage Loan

A mortgage loan to buy, build, finish, renovate or repair a property, purchase a plot of land, or repay a mortgage loan from another bank. For the first 2, 3 or 5 years the interest rate is fixed and then it varies with the Euribor 1M rate plus a fixed spread for the entire term of the loan.
INTEREST RATE
Fixed
for 2, 3 or 5 years

then

Variable
Euribor 1M + a spread
+ Law 128/1975 levy
LOAN TERM
Up to 30 years
LOAN AMOUNT
From €20,000

and up to 80% of the estimated value of the property
KEY ADVANTAGES
  • Financial planning

Features

Loan Amount

From €20,000

Depending on the purpose of the mortgage loan, the percentage that can be financed is:

  • Up to 80% of the estimated value of the property
  • Up to 90% of the estimated construction cost of the under construction /completion property



Interest rate

The interest rate of the Fixed-Rate Mortgage Loan is:

Fixed for the first 2, 3 or 5 years

Loan term Interest rate/b>
Fixed for 2 years
 
From 5,30%
Fixed for 3 years
 
From 5,50%
Fixed for 5 years
 
From 6,00%


Then the interest rate varies with the Euribor 1M rate plus a spread of 4% that remains fixed for the entire term of the loan.

Interest rates are also subject to the Law 128/1975 levy. Today it stands at 0.12% for homes and 0.6% for business premises.



Loan term

From 6 to 30 years depending on the intended purpose of the mortgage loan:

  • To buy, build or finish a home from 6 to 30 years
  • To renovate or repair a home from 6 to 20 years
  • To repay a loan from another bank up to 3 years + the number of years remaining from the original loan


Grace period

We can offer grace periods ranging from 6 to 18 months for loans you take out to build, finish or buy a property being built.



Disbursement

Depends on the loan’s purpose:

  • Purchase – immediate disbursement of the amount, lump-sum
  • Construction, completion, renovation, repair in instalments based on the progress of works


Repayment

In monthly instalments that repay:

  • Interest, capital and premiums
  • Premiums only during a grace period
Instalments are paid automatically from your deposit account.



Early repayment option

  • During the fixed-rate period, you can repay all or part of the sum early at any time. Depending on the progress of the interest rates you may have to pay an added cost when repaying your capital early
  • During the variable-rate period, you can repay all or part of the sum early at any time at no cost
  • If you plan to pay off the entire amount, an administration fee is payable in line with the Bank’s pricelist


Collateral

Collateral can either take the form of a mortgage lien on the property or a pledge of cash or securities.



Mandatory insurance coverage

  • Fire and Earthquake Insurance for the property for an insured capital equal to the cost of building the property
  • Life and permanent total disability insurance for one of the borrowers, for an insured capital equal to the approved loan limit
  • Premiums are payable each month along with the loan instalment



Insurance options

The Payment Protection Plan comes as an option. This form of insurance coverage provides compensation for:

  • Dismissal or temporary disability due to accident or illness, for full-time, private sector employees with a contract.
  • Hospital treatment and temporary disability due to accident or illness for freelance professionals, civil servants and part-time private sector employees with a contract
The compensation guarantees that:

  • Your mortgage loan instalments will continue to be paid as normal for a set period
  • Your insurance coverage will apply for the remainder of the plan, if you opt to continue it, even though you have fully or partially repaid the loan.