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Fixed, mixed, or variable rate. What’s the difference?
- Fixed rate: guarantees a fixed monthly payment throughout the entire mortgage term.
- Variable rate: is an interest rate that can change over time, as it depends on a benchmark index, such as Euribor, and the bank's spread. If the benchmark rate rises or falls, the mortgage interest rate will be adjusted accordingly.
- Mixed rate: combines elements of both fixed and variable rates. During an initial period, a fixed rate is applied and remains unchanged. After this period, the rate becomes variable and is adjusted according to a benchmark index, such as Euribor, and the bank's spread.
What is APR (Annual Nominal Rate)?
The APR (Annual Nominal Rate) is the fixed or variable interest rate applied annually to the total amount of credit used (expressed as a percentage). It represents the cost associated with the loan’s interest and, in the case of variable-rate loans, the APR corresponds to the sum of the Euribor rate and the bank's spread.
What is APRC?
The APRC (Annual Percentage Rate of Charge) represents the total cost of the loan, including the APR and other charges applied by the lending institution. It is expressed as an annual percentage of the total amount of credit.
What is the difference between taking out a mortgage with 1 or 2 borrowers?
- With 1 borrower: the mortgage is taken out and assumed by a single person.
- With 2 borrowers: both parties are responsible for the repayments, which can increase borrowing capacity and make mortgage approval easier.
How do I know the down payment amount I need when taking out a mortgage?
Generally, banks require a down payment between 10% and 20% of the property’s value, depending on the financing conditions.
However, there are exceptions, such as 100% financing for Young Mortgage Loans, for those who meet the required criteria.
To get an estimate of the required down payment tailored to your profile, use the mortgage simulator.
What is the maximum term for a mortgage application?
- Up to 40 years for borrowers under 30 years old.
- Up to 37 years for borrowers aged 30 to under 35 years old.
- Up to 35 years for borrowers aged 35 or older.
With a maximum limit of 75 years of age at the end of the loan term.
What is the maximum amount I can borrow with a mortgage?
For your first home:
- Financing from €25,000
- Up to 85% of the property valuation, not exceeding 90% of the purchase price
- If you are between 18 and 35 years old (inclusive), financing up to 100% of the property value may be available
For your second home:
- Financing from €25,000
- Up to 80% of the lower value between the valuation and the purchase price
What insurances are required?
- Life Insurance linked to the Mortgage, which ensures repayment of the loan in case of death or disability.
- Multi-Risk Home Insurance linked to the Mortgage, which provides protection against fire, floods, storms, water damage, seismic events, and theft or burglary.
What documents do I need for the mortgage simulation?
At this stage, you do not need to submit any documents. Online simulations are purely indicative, giving you an idea of the monthly payment you may have to pay. To generate this estimate, the bank’s website will request information such as:
- the property value you are considering, the loan term, and the type of interest rate
- the number of borrowers and their dates of birth
Afterwards, you will receive the simulation results: the down payment amount and the monthly installment.
