Euribor 1M 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. The interest rate varies with the Euribor 1M rate plus a fixed spread for the entire term of the loan.
INTEREST RATE
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
  • An interest rate that follows market trends and is custom made for you
INTEREST RATE
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
  • An interest rate that follows market trends and is custom made for you

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


Interest rate

The interest rate varies according to the Euribor 1M rate plus a fixed spread that varies from 2.65% to 4.60%.

The interest rate of the loan is formed upon evaluation of your loan application by the Bank in accordance with its credit policy, taking into account factors such as customers’ credit history, the collateral, the loan amount and loan duration.

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.


INDICATIVE EXAMPLE

For a loan amount of € 100,000, 20 years maturity, floating rate of Euribor 1M (-0.47% on 18/10/2019), plus a margin of 3.50% (plus l. 128/75, 0.12% levy), Inquiry Cost: 350 €, cost of legal checks: 50 €, cost of technical checks: 130 €:

Total Credit Amount: 100,000 €
Total Credit Cost: 35,476.19 €
Total Amount to be paid: 135,476,19 €
APR: 3.26%

The APR is calculated based on the assumption that the floating rate will remain at current levels for the entire loan duration.
The APR and the total amount to be paid are an example and apply only for the abovementioned data.


Loan term

From 3 to 30 years depending on the intended purpose of the mortgage loan:

  • To buy, build or finish a home – from 3 to 30 years
  • To renovate or repair a home – from 3 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 period 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

You can repay all or part of the amount 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.