* Financial conditions for the acquisition of a second home with mortgage guarantee, taking into account the following representative example:
DISCOUNTED APR: If all the discount conditions are met, based on the hypothesis that you can opt for the maximum discount: (i) total credit amount: €150,000; (ii) maximum term: 20 years; (iii) 0% arrangement fee (iv) interest rate: fixed, discounted NIR: 2.55%; (v) discounted APR: 4.168%; (vi) monthly payment: €798,51; (vii) number of payments: 240; (viii) total amount due (including expenses): €219,268.14, (ix) total cost of the credit: €69,268.14; (x) interest: €41,642.40. French repayment system1.
The DISCOUNTED APR may vary depending on the term and amount of the transaction, as well as the monthly discount recipient compliance reviews.
NON-DISCOUNTED APR: if the discount conditions are not met: (i) total credit amount: €150,000; (ii) maximum term: 20 years; (iii) arrangement fee 0%; (iv) interest rate: fixed, NIR 3.55%; (v) APR: 4.141%; (vi) monthly payment: €873.80; (vii) number of payments: 240; (viii) total amount due (including expenses): €219,106.10; (ix) total cost of the credit: €69,106.10; (x) interest: €59,712.00. French repayment system¹.
The NON-DISCOUNTED APR may vary based on the term and amount of the transaction.
Common Terms and Conditions for the discounted APR and the non-discounted APR:
a) Other common financial conditions: Compensation or fee in the event of the total or partial early repayment or amortisation of the loan that cannot exceed the amount of the financial loss that would be experienced by CaixaBank, with the limit of 2% of capital paid off early within the first 10 years, and; of 1.5% of capital paid off early up to the end of the loan's life.
b) Preparatory expenses, which will be covered by CaixaBank:(i) Taxes: 1,215.80 euros in stamp duty for a mortgage of 162,106.50 euros and a 0.75% tax rate; (ii) registry verification: €10.91; (iii) notary: €597.00; (iv) management: €363.00; (v) registration: €283.00.
c) Preparatory expenses that you will pay, taking into account that you can either request the appraisal through CaixaBank or provide it yourself: (i) Appraisal: 254.10 euros (if the mortgage transaction is executed, CaixaBank will pay you the amount for the appraisal performed or provided within a maximum of 45 days from the effective date).
d) Associated additional services that you will pay for:
PROPERTY DAMAGE INSURANCE: You must take out a property damage insurance policy to cover the entire mortgaged property, irrespective of whether you choose to sign up for the discounts or not. This policy must be valid and have no payments outstanding. CAIXABANK does not offer property damage insurance that only covers the risks required by regulations (damage caused by fire, explosions, storms and natural events other than gales, nuclear energy and landslides). Therefore, you are free to take out this type of insurance with the insurer of your choice. However, CaixaBank does offer home insurance policies that cover the types of damage required by regulations in addition to expanded coverage. For the purpose of calculating the non-discounted APR and the discounted APR, the premium resulting from the home insurance calculation will be taken into account; additionally, in the event you contract the discounted APR, the corresponding discount will be applied.
Home insurance policy: €317 annual premium. Annual premium amount based on the assumption that it will not vary throughout the term of the transaction. The amount is for guidance purposes only and is based on home insurance products offered by CaixaBank, S.A. (e.g. based on a mortgage with a capital sum of €150,000 and buildings coverage of between €100,001 and €120,000 with a gross building area of 100m2; whereby the total amount payable for this item throughout the term of the transaction would be €6,340.00). The amount is the result of a calculation made based on a guidance screening; thus, the value may vary depending on the building and exact square metre measurements of the property.
PAYMENT ACCOUNT: You need to keep an account open with CaixaBank throughout the full term of the loan. You must pay the maintenance price of the payment account, which amounts to 35.00 euros/quarter. The calculation of the discounted and non-discounted APR will take into account this maintenance cost.
Discount terms and conditions: these are percentage points that will be deducted from the NIR, if the following products are taken out: (i) direct deposit of salary or pensions or recurring income > €600 + direct debit payments of 3 bills + purchases with cards*** marketed by CaixaBank, S.A. where the account holder is the debtor and when settlements are paid by direct debit from a demand deposit account opened in CaixaBank, S.A. by the holder of the same and which have been used to make at least three purchases during the last three months: 0.25 points; (ii) taking out a home insurance policy: 0.25 points; (iii) taking out life or health insurance (except Adeslas Dental and Adeslas Básico) *: 0.25 points; (iv) financing or subscription for contracting a "SECURITAS DIRECT Home Alarm"** service or "SENIOR PROTECTION SERVICE"***: 0.25 points. The aforementioned services must always be marketed by CaixaBank, S.A or Promocaixa S.A. Compliance with the requirements to apply the discount terms and conditions will be reviewed on a monthly basis, and the interest rate can be adjusted upwards or downwards with this frequency according to CaixaBank's review. Purchase of the products listed above is optional. Each of the products can be taken out independently. There is no difference between the combined offer price and the offer price for separate products (prices of the products and services specified do not vary whether taken out in combination or separately).
*Life insurance (calculation for life and repayment insurance): 226.58 euros annual premium (under the premise that the premium will not vary during the validity of the operation, or be updated according to the capital repaid or to the age of the policyholders). The premium is calculated based on a life insurance policy being taken out for 50% of the capital with the policyholder being 30 years of age. The cost of this service will be paid by the customer if it is applied for.
**Subscription or financing of the "SECURITAS DIRECT Home Alarm" service, marketed by Promocaixa S.A. and/or financed by CaixaBank, financed meaning the provision of a loan at 0% APR and 0% NIR (36 monthly payments of €65.91 each for financing the purchase, installation and maintenance of the alarm). Total amount owed and RRP: €2,372.76 / total price in instalments. Total credit amount €2,372.76. The total cost of credit for the consumer is €0. The maintenance service of the alarm must remain for the rest of the term of the mortgage, with a cost of 50.82 euros per month. Subscription to the "Senior Duo Protection Service," marketed by PromoCaixa S.A., RRP: €1,224.00. The maintenance service must remain for the rest of the term of the mortgage, with a cost of 34.00 euros per month. For the purposes of calculating the APR, the cost of the Securitas Direct alarm service will be taken into account, as it is higher than the cost of the Senior Duo Protection service. French repayment system.1
*** Card maintenance cost (calculation for the Visa&Pay Debit card) marketed by CaixaBank: 48.00 euros/year. The calculation of the discounted APR will take into account this maintenance cost. The cost of this service will be payable by you if contracted.
Warnings: (i) Any breach of the loan obligations deriving from the loan can incur serious consequences for the mortgage holder, for his or her guarantor or for the owner of the mortgaged property, such as the loss of his or her property and of other goods. (ii) CaixaBank reserves the right to refuse to grant the operation or to approve it under the terms and conditions that it deems appropriate, after assessing the solvency of the applicant and according to the bank's risk criteria; (iii) pursuant to the law, the APR covers the financial terms and conditions of the example given, expenses and additional services under the assumption that the insurance policy premium will not vary while the contract is in effect and (iv) you are entitled to provide an appraisal for the property/properties subject to guarantee, provided said appraisal is certified by an approved appraisal company and has not expired.
1 French repayment system: A constant payment consisting partially of capital repayment and partially of interest. The portion of interest included in each payment will be the result of applying the effective interest rate to the outstanding capital at the start of each monthly period. The difference to the amount of the payment is the part corresponding to capital repayment.
Every month, interest must be paid on the outstanding capital. When the loan is first taken out there is a lot of capital to repay, which is why the interest payment is higher than the capital repayment at first. As we want instalments to remain constant, the interest part declines and the capital part increases as time progresses.
The repayment instalment is constant: it remains unchanged while the interest rate is not modified. For example, if we have a 20-year loan of 100,000 euros at an interest rate of 3.75%, each monthly payment will be 592.89 euros. The first payment will consist of €312.50 in interest and just €280.39 in capital repayment. In contrast, 20 years later, the final payment will be €1.85 in interest and €591.04 in capital.
Arithmetic formula (French fee)
ak = Ck * [(r/m) / [1-[1+(r/m)] −n]]
"a k" being the mixed capital repayment and interest; "Ck" the outstanding capital at the start of the period; "r" being the annual nominal interest rate, as per one; "m" the number of loan repayment periods included in a year and "n" the number of repayment periods (capital and interest payment) pending.