This is typically a loan with a long term, in which the mortgage on the house is given as a guarantee of repayment.
In addition to mortgage loan, there are other mortgages taken out with clients which are subject to the mortgage rules. They are therefore covered by these rules:
- Credit agreements which, while not corresponding to a mortgage, are secured by a mortgage or other equivalent security commonly used on real estate, as is the case with consolidated credit or credit where the purpose for which the loaned amount is intended is not defined;
- The leasing of real estate for permanent, secondary or rental use.
Consolidated Loan is a type of loan that allows you to combine several loans that you have at the same time into a single loan, bringing them together in a single credit institution. It allows you to reduce your credit costs (in a single installment) by extending the term and setting a more favorable interest rate. This can result in a relief in the monthly budget.
It is a loan whose guarantee is a property, which is mortgaged. Normally, mortgage loans are secured by a property free of liens and encumbrances. However, properties with a mortgage may also be accepted.
The Flex Mortgage Loan is a medium-long term loan that can be granted for the following purposes:
- Total or partial consolidation of existing loan in OIC;
- Building work;
- Education and health expenses;
- Various purposes (to obtain extra liquidity). As the name of the product indicates, it is a loan guaranteed by a mortgage (on real estate) and is intended for various purposes.
Aceitam-se como garantia imóvel sem ónus e encargos ou com uma hipoteca;
- Term of up to 20 years;
- Maximum age of 75 at the end of the loan term;
- Interest rate fixed for the first 2 years and variable thereafter.
Yes. With Flex Mortgage Loan, Banco BNI Europa accepts 2nd mortgages as a guarantee. In other words, it offers financing with a mortgage guarantee on a property that already has a mortgage registered in favor of another bank.
Pre-approval of a loan application can take place within 24 hours and this period can be extended if the Bank needs to request additional information/documents.
Yes, it’s possible and it’s one of the purposes of the Flex Mortgage Loan, as long as the value of the property allows it.
The difference between a consolidated loan with a mortgage and one without is precisely that the former involves taking out a mortgage on a property, whereas the latter does not.
A consolidated loan with a mortgage usually benefits from longer terms (up to 20 years) and competitive interest rates.
Consolidated loan is for those who have at least two loans with one or more financial institutions and want to combine them into one, thus paying just one monthly installment.
Although personal loans are quicker, they also add another monthly payment to your budget and traditionally have higher interest rates.
Consolidated loan with a mortgage guarantee, on the other hand, allows for lower interest rates – because the guarantee of the property ensures greater security, longer terms – and only one monthly payment.
The advantages are:
- Just one monthly payment to be made on a fixed day of the month;
- Reduced monthly payment;
- Extended payment period;
- Only one creditor;
- Greater budgetary freedom.
The disadvantages are:
- More expensive process at the beginning;
- Extending the term may increase the total amount of interest paid;
- Penalties for early amortization.
The process is usually divided into 5 phases: Simulation; Pre-approval; Evaluation; Approval; Deed
The mortgage credit contract has costs associated with the valuation of the property, study of the process, Authenticated Private Document (Deed), Registrations and IS on the Loan, according to the Price List in force.
No, the consolidated loan is only registered as a mortgage loan. In other words, it is not considered an incident.
Life insurance is not required by law. However, banks generally require life insurance to be taken out. However, in some situations, you may be exempt from taking out life insurance, or you may have to pay it in installments, either for all the borrowers or just one of them.
Life insurance can differ from insurer to insurer, especially in terms of the offer associated with it. However, we can identify two types:
- ADI (Absolute and Definitive Invalidity)
- TPI (Total and Permanent Invalidity)
Legally, all properties under horizontal ownership must have insurance that protects the property at least in the event of fire.
Banks usually require you to take out multi-risk insurance, which is more comprehensive and includes cover for other disasters, such as: fire; floods; seismic phenomena; theft; landslides; storms; etc.
Normally, the amount to be insured is based on the reconstruction value of the property. This is lower than the market value.
A Client’s rights and duties are duly explained on the Bank of Portugal website.
In summary, with regard to rights, the customer is entitled to:
- Receive pre-contractual information, such as a simulation ESIS; an approval ESIS; a draft contract; clarification of any doubts; and receive accurate information on the bank’s assessment of the potential risks the client runs when taking out credit;
- Receiev information at the time of the contract, such as the draft contract before it is signed and receiving a copy of the contract when it is signed;
- Receive information during the term of the contract, such as a periodic detailed statement with information on the evolution of the loan;
- To make an early repayment, whether total or partial, and to do so must comply with the notice period set out in the draft contract. In this case, the payment of a commission for early repayment may be implicit;
- Minimum reflection period of 7 days, allowing the client to analyze several proposals.
With regard to duties, we list that the client has a duty to:
- Taking out credit responsibly;
- Analyze information before taking out a loan;
- Providing truthful information to the credit institution;
- Compliance with contractual clauses.
The effort rate is the percentage of the household’s total income used to pay the installments on loans taken out.
It corresponds to the income that is available to cover day-to-day expenses (such as food, transport and fuel, education and leisure) after paying the monthly obligations with loans previously taken out.
It is calculated as follows: Effort Rate = (Financial Charges / Total Net Household Income) x 100
This is the European Standardized Information Sheet.
The ESIS is a standardized pre-contractual information document. It must be handed over when a client or potential client carries out a simulation. It should also be given when the credit agreement is approved.
According to Decree-Law no. 74-A/2017, the main objective is to guarantee the customer the right to clear and transparent information about the banking product, from the proposed conditions (Purpose; amount; term; rate; …) to the associated costs (Process commissions; Insurance premium charges; Deed costs, …).
Yes, banks and credit institutions are also obliged to provide home loan guarantors with a copy of the ESIS.
The ESIS must be made available to the client at two different times:
- When the loan is simulated – simulation ESIS;
- When the credit agreement is approved – the approval ESIS.
With the entry into force of the new rules, the client and the guarantor have a reflection period of 7 days from the presentation of the proposal. Only after this period can the contract be signed.
This measure is intended to ensure that the consumer and guarantor have enough time to consider the implications of the credit and make an informed decision.
Decree-Law no. 74-A/2017 applies to mortgage loan agreements entered into with clients, which covers:
- Credit agreements for the acquisition of permanent, secondary or rental housing;
- Credit agreements for the acquisition or maintenance of property rights over existing or planned land or buildings;
- Credit agreements which, regardless of their purpose, are secured by a mortgage, other equivalent security over real estate or a right relating to real estate;
- Leasing contracts for real estate for permanent or secondary residence or rental.
Consolidated losn is a type of loan that allows you to combine several loans you have at the same time into a single loan, aggregating them in a single bank or financial institution. It allows you to reduce the monthly payment and extend the payment period, leaving you with just one installment. This can result in a relief in the monthly budget.
Peça a sua simulação
