LEGAL TERMS AND CONDITIONS IMAGINBANK MORTGAGE LOAN
*The offer is valid until 31 May 2024.
Mortgage Loan issued by CaixaBank S.A. Financial conditions for the purchase of a second home with mortgage guarantee, taking into account the following representative example:
1. DISCOUNTED AER: if all the discount terms and conditions are met, based on the assumption that you are eligible for the discount. (i) amount €150,000; (ii) duration: 25 years; (iii) arrangement fee 0%; (iv) interest rate: fixed; Discounted NIR: 3.10% (v) discounted AER: 3.822%; (vi) monthly payment: 719,14 euros; (vii) number of payments: 300; (viii) total amount due (including expenses): 231,085.60 euros; (ix) total cost of the loan: 81,085.60 euros; (x) interest: 65,742.00 euros. French repayment system. 1
2. NON-DISCOUNTED AER: if the discount terms and conditions are not met: (i) amount: €150,000; (ii) duration: 25 years; (iii) arrangement fee 0%; (iv) interest rate: fixed, 3.85% NIR; (v) 4.336% AER; (vi) monthly payment: 779.38 euros; (vii) number of payments: 300; (viii) total amount due (including expenses): 243,493.10 euros; (ix) total cost of the loan: 93,493.10 euros; (x) interest: 83,814.00 euros. French repayment system. 1
The AER may vary depending on the term and the amount of the operation, as well as on monthly reviews of compliance with the discount conditions.
a) Other common financial terms and conditions: compensation or commission for total or partial repayment or early redemption that may not exceed the amount of the financial loss that CaixaBank may suffer, with a limit of 2% of the capital repaid during the first 10 years and 1.5% of the capital repaid until the end of the life of the loan.
b) Preparatory expenses, which will be covered by CaixaBank: (i) taxes: €1,125.00 in documented legal acts for a mortgage liability of €150,000 and a tax rate of 0.75%; (ii) registry verification: €10.91; (iii) notary: €597.00; (iv) management: €363.00; (v) registration: €283.00.
c) Preparatory expenses to be paid by the customer: (i) valuation: €254.10 (if the transaction is completed, CaixaBank will pay you this amount within a maximum of 45 days following the date of incorporation).
d) Related ancillary services to be paid by the customer: the customer must take out a mandatory damage insurance policy. CaixaBank does not sell damage insurance. as such, below we offer you the premium resulting from calculating a home insurance policy (which is the closest to a damage insurance policy that the bank sells, with the difference that home insurance offers greater coverage). For the purpose of calculating the AER, the premium resulting from simulating the home insurance will be taken into account. However, the customer is free to apply for a damage insurance policy, which is compulsory, with the insurance company of their choice.
Home insurance policy: The amount of the annual premium is based on the hypothesis that it will not vary during the validity of the operation. The amount is merely intended to serve as a guide 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 built-up area of 100m2, the total amount payable throughout the term of the operation would be €7,925.00). The amount is the result of a calculation made based on a guidance screening and this value can vary according to the building and square metres of the property.
imagin payment account: you must maintain an account with CaixaBank throughout the loan term. The customer will pay maintenance fees for the payment account, which is free in the case of an imagin account, €15 per quarter in the case of an everyday account. The calculation of the discounted AER will take this maintenance cost into account.
Discount terms and conditions: these are percentage points that will be deducted from the NIR, if the following products are taken out: (i) one of the parties to the transaction has had their salary or pension paid directly into an open deposit at CaixaBank, S.A., for the last 6 months, provided the amount exceeds 1,200 euros per month, or if they are self-employed, has had their average net income paid in directly in the last 6 months, provided the average amount resulting from this period exceeds 1,200 euros. 0.30 points. (ii) for taking out and staying current on payments of a life insurance policy from VidaCaixa, S.A. (except MyBox Jubilación), marketed by CaixaBank, S.A., for a minimum insured amount corresponding to 50% of the financed amount. The borrower (sole or joint) will be eligible for the discount as long as they are the holder of this policy: 0.30 points. (iii) for taking out and staying current on payments of a home insurance policy for the mortgaged property as a guarantee for the operation with SegurCaixa, S.A., sold by Caixabank, S.A. or for taking out and staying current on payments of an insurance policy that covers damages that most often affect buildings under construction or refurbishment with SegurCaixa, S.A., sold by CaixaBank, S.A.: 0.15 points.
Compliance with the requirements to apply the discount terms and conditions will be reviewed on a monthly basis, and the interest rate may be adjusted upwards or downwards in accordance with CaixaBank's said monthly review of the borrower's compliance with said requirements.
Life insurance: (simulation of a life insurance policy and amortisation) 226.58 EUR per year (based on the assumption that the premium will not vary throughout the term of the operation, nor will it be updated according to the amortised capital or the passage of time). the premium is calculated based on the purchase of a life insurance policy for 50% of the capital for a 30-year-old policyholder.
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) the AER, pursuant to the law, covers the financial terms and conditions of the example, the expenses and the access services under the assumption that the premium of the insurance policy will not vary during the validity of the contract; (iv) the maturity of the transaction shall be such that the age of the youngest party is no more than 75 years old at the end of the term.
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 instalment remains unchanged while the interest rate is not modified. For example, if you have a twenty-year loan of €100,000 at an interest rate of 3.75%, each monthly payment will be €592.89. 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]]
"ak" being the mixed capital repayment and interest; "Ck" being the outstanding capital at the start of the period; "r" the annual nominal interest rate, as per one; "m" being the number of loan settlement periods included in a year; and "n" being the number of repayment periods (capital and interest payment) pending.
