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FLEX MORTGAGE LOAN

The Flex Mortgage Loan is a versatile financing solution fully adaptable to your needs.

With this financing, you can obtain the liquidity necessary for your personal projects or find the ideal solution to consolidate multiple loans and reduce monthly expenses.

To allow for longer terms and lower interest rates, this credit is secured by a mortgage on a property, similar to a home loan.

Our concern is to meet your needs.

Purposes of FLEX Mortgage Loan

Debt Consolidation Property Renovation
Education and Health Expenses Various Purposes

Unique
Advantages

Unique
Advantages


Pre-approval
within 24 hours

Competitive Interest Rate

Terms of up to 20 years

Reduction of
monthly charges
(in consolidated loan)

Financing
multifinalities

Examples

of using FLEX

Mortgage Loan

A client with multiple loans requires a CONSOLIDATION

solution to reduce the amount of their monthly payments.


VALUE OF LOANS CURRENT
65 000€

15 years, APR 5,22%
521,33€
25 000€

7 years, APR 6,00%
365,21€
30 000€

7 years, APR 8,50%
475,09€
7 500€

APR 13,50%
375,00€
Total 127 500€ 1736,63€
FLEX Solutions for Consolidation
Solution a

WITHOUT transfer of the mortgage loan

Solution b

WITH transfer of the mortgage loan

521,33€ 436,73€

APR 5,215%
Term of 20 years
**
587,05€

APR 7,715%
Term of 15 years
*
511,21€

APR 7,701%
Term of 20 years
***
Total 1.108,38€ Total 947,94€
*

TAEG 9,485%

**

TAEG 6,261%

***

TAEG 8,937%

Example Representative Solution A
Example Representative Solution B
Example Representative Solution B

APR calculated based on a Variable Nominal Annual Rate of 5.215% (6 month Euribor from June 2024 of 3.715% and a spread of 1.5%), for a standard loan of 65,000 EUR over 20 years, for a borrower aged 40 with a loan-to-value ratio of 64%. The loan is repayable in 240 monthly installments of principal and interest, with an estimated monthly amount of 436.73 EUR. Total cost of loan is 46,652.67 EUR, and the total amount payable by the consumer (MTIC) is 111,652.67 EUR. This includes: property appraisal fee, initial commissions, contract formalization expenses, stamp duty on credit usage, and insurance premiums for life and multi-risk insurance.

APR calculated based on a Variable Nominal Annual Rate (APR) of 7.701% (6 month Euribor of June 2024 of 3.715% and spread of 3.986%), for a standard loan of 62,500 EUR over 20 years, for a borrower aged 40 with a loan-to-value ratio of 64%. The loan is repayable in 240 monthly installments of principal and interest, with an estimated monthly amount of 511.21 EUR. Total cost of loan is 66,180.45 EUR and total amount charged to the consumer (MTIC) 128,680.45 EUR. Includes: property appraisal fee, initial fees, contract formalization expenses, stamp duty on the use of credit, and life and multi-risk insurance premiums.

Example Representative Solution A

APR calculated based on a variable nominal interest rate (APR) of 7.715% (6 month Euribor of June 2024 at 3.715% and a spread of 4%), for a standard loan of 62,500 EUR over 15 years, for a borrower aged 40 with a loan-to-value ratio of 64%. The loan is repayable in 180 monthly installments of principal and interest with an estimated monthly amount of 587.05 EUR. Total cost of loan is 49,816.95 EUR and the total amount payable by the consumer (MTIC) is 112,316.95 EUR. Includes: property appraisal fee, initial commissions, contract formalization expenses, stamp duty on the use of credit, and life and multi-risk insurance premiums.

The 5 phases of the hiring process


  • Simulation
  • Pre-Approval
  • Avaliation
  • Approval
  • Deed

1. Simulation

At this stage, all you have to do is tell the bank a few details, such as the amount, the estimated value of the property, the desired term and the type of rate, in order to find out the characteristics of the loan.

2. Pre-approval

At this point, in addition to the Credit Proposal, duly signed by the Client, which formalizes their request for credit, the Bank can give you information about the potential viability of your request. However, you will be asked for additional documentation and/or information in order to proceed with the approval process.

3. Valuation

The Valuation is crucial, as it is at this point that it is confirmed whether the value of the property to be pledged as collateral is sufficient for the loan.

The property will therefore be appraised by an independent appraiser.

If the appraisal value differs from what was initially considered in the Simulation, the financing conditions may be altered.

4. Approval

With the result of the Evaluation, at this stage the process is reviewed and it is ensured that the requirements have been met.

The preparation of the documentation begins, and you will be given the Letter of Approval; the approval ESIS; and the Draft Contract.

You will have a period of reflection of at least 7 days, after which, and if you agree with the conditions, you must deliver the signed ESIS of Approval to the Bank in order to start scheduling and carrying out the deed.

5. Deed

Last phase of the process.

The Deed is marked according to its availability, and in accordance with the loan characteristics validated in the Approval ESIS.

Request your simulation here.

If you prefer, call us at 214 012 980 (national landline call) on weekdays from 9 a.m. to 6 p.m.

Or send an email to cliente.flex@bnieuropa.pt





* This simulation assumes the acceptance of Banco BNI Europa’s Privacy Policy and the processing of your data.

This simulation does not constitute a guarantee of credit approval. The contracting of credit operations is subject to prior assessment and decision based on credit risk, the potential establishment of guarantees deemed appropriate by Banco BNI Europa, and the verification of data provided by the Client.

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FAQ

Download Documents

What is a Mortgage Loan?

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.
What is a Consolidated Loan?
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.
What is a Consolidated Loan with a mortgage?
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.
What is the purpose of Flex Mortgage Loan?

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.
What are the main features of the Flex Mortgage Loan?

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.
What is a 2nd Mortgage? Does Banco BNI Europa accept 2nd Mortgages?
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.
How long does it take to analyze a loan application?
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.
Is it possible to combine all the credits and still ask for additional liquidity?
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.
Is it possible to transfer the mortgage loan and combine all the other loans into one consolidated?
Yes, it’s possible.
What’s the difference between a Consolidated Loan with and without a mortgage?
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.
Who is consolidated loan for?
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.
What is the difference between a consolidated loan with a mortgage guarantee and a personal loan?

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.

What are the advantages of consolidated loan?

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.
What are the disadvantages of consolidated loan?

The disadvantages are:

  • More expensive process at the beginning;
  • Extending the term may increase the total amount of interest paid;
  • Penalties for early amortization.
What documentation do you have to submit for a Flex Mortgage Loan?

The process is usually divided into 5 phases: Simulation; Pre-approval; Evaluation; Approval; Deed

  • Simulation: At this stage it will be important to inform the bank of certain details, such as the amount, the estimated value of the property, the desired term and the type of rate, in order to find out the characteristics of the loan. It is not compulsory to provide any proof.
  • Pre-approval: At this moment, in addition to the Loan Proposal, duly signed by the Client, which formalizes their request for loan, the Bank can give you information on the potential viability of your request. However, you will be asked for additional documentation and/or information in order to proceed with the approval process, such as:
    • Identification Document
    • Tax Identification Number
    • Last 3 Pay Slips or last 6 Green Receipts
    • Last Tax Return
    • Bank Statements for the last 3 months
    • CRC Information

    Note 1: This documentation may not be required in its entirety at the time of pre-approval.

    Note 2: Applicable to Guarantors when they are part of the financing

  • Avaliation:
    • Legal Description
    • Land Registry Certificate
    • Plan of the Property
    • Construction budget (if applicable)
  • Approval and Deed:
    • FINE de Aprovação assinada
    • Property Technical Sheet
    • Use License
    • Energy Certificate
    • Duplicate loan agreement duly signed by all parties involved
    • Life Insurance
    • Multi-Risk Insurance
    • Additional documentation that may be requested
What are the costs associated with the Flex Mortgage Loan?
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.
Is consolidated loan registered as an incident with the Bank of Portugal and does it make it impossible to access further loans?
No, the consolidated loan is only registered as a mortgage loan. In other words, it is not considered an incident.
Is it a requirement to take out life insurance in a Mortgage Loan agreement?
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.
What coverage does life insurance provide?

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)
Is it a requirement to take out multi-risk insurance when the bank provides a mortgage?

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.

How much do you need to take out multi-risk insurance for?
Normally, the amount to be insured is based on the reconstruction value of the property. This is lower than the market value.
What are the Client’s rights and duties in Mortgage Credit?

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.
What is the Effort Rate?

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

What is ESIS?

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, …).

Does the ESIS have to be handed over to the guarantors?
Yes, banks and credit institutions are also obliged to provide home loan guarantors with a copy of the ESIS.
When does the ESIS have to be handed in?

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.
When can the Mortgage Loan Contract be signed?

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.

What is the Legal Regime of Mortgage Loan?

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.

Request your simulation