Guide results for a fixed interest rate loan.
The APR is the all-in cost of the loan, expressed in the form of an annual percentage. Assuming data that reflect the average of formalised operations and an average risk, the applicable APR is 3.98%. It comprises:
· Amount of the loan: €150,000
· Term: 360 months, monthly payment
· Fixed interest rate: 3.55%
· Start-up fee: 0%
· Damage insurance: €240.96 first year (on the basis of home insurance on an 85-m2 property in Madrid, rebuilding value: €85,000, content value: €18,000. Amount to consider total term: €7,228.80. The types of home insurance to choose from are: Home Insurance and Comprehensive Home Insurance).
· Valuation:€400.13 (supposition of valuation of a property with a built area of less than 150 square metres).
· Non-notarised Property Register note: €20.72 (charged if not processed through the management agent designated by Bankia).
· Gestoría (administrative procedures): € 139.15
· Record: €0
· Taxes: Mortgage stamp duty €1,811.25
According to the previous breakdown, the all-in cost of the loan would be € 253,591.24 of which € 93,991.19 the total of interests would be matched.
The "gestoría" (administration) and registry costs and taxes have been calculated based on the processing of a mortgage in Madrid, on a single property, without guarantee or collateral securities.
They are not built in expenses of notary's office nor the ones corresponding to previous trading, for not intervening in the calculation of the APR.
Expenses which Bankia will cover in relation to this mortgage:
Notarial copy of the deed requested by Bankia: the expenses derived from the issuance of the notarial copies of this deed requested by Bankia for its own purposes (namely, the electronic copy to be filed electronically and the executive copy).
Land Registry: Expenses of enrollment of the present mortgage in the Land registry.
Management agent: 50% of the management agent's expenses.
These expenses have already been deducted from those indicated previously.
Terms and conditions subject to Bankia risk approval, for mortgages where any of holders receives monthly uninterrupted income paid directly into a Bankia account according to the conditions in force at any time of the payroll service or of the pension service. The fulfillment of the conditions of regular monthly incomes will be revised once a year and in the event of non-compliance the nominal interest rate of the loan will be penalised, increasing by 1.00% (APR 4.93%).
Risks and warnings
Please note the following warnings and risks entailed in a mortgage:
- Your income may vary. Ensure that if your income falls, you will still be able to make your monthly mortgage payments.
- You have the right to examine the draft contractual documentin the office of the authorising notary, before it is signed in their presence.
- You may lose your homeif you do not make your payments punctually.
- Unlimited personal liability: you will be responsible to Bankia for the payment of the loan, not only with your home, but with all your current and future assets.
- Fixed interest rate: you should take into account that the interest rate on this loan remains fixed throughout the loan term.
- Regardless of the information given in this note, you will have to pay other taxes and expenses, such as notarial expenses.