LEGAL TERMS AND CONDITIONS OF IMAGINBANK MORTGAGE
*Offer valid until 22/11/2024.
Mortgage loan granted by CaixaBank S.A. Financial conditions for the purchase of a second home secured by a mortgage, taking into account the representative example for ImaginBank Discounted and Non – Discounted Hybrid Mortgage with 5 years at a fixed rate and the remaining years, up to 30 years in total, at a variable rate, as follows:
1. Representative example for ImaginBank Discounted Mixed Mortgage with 5 years at fixed rate and the remaining years at variable rate:
Discounted APR: if all the discount conditions are met, assuming you are eligible for the maximum discount: (i) amount: €150,000; (ii) duration: 25 years; (iii) arrangement fee from 0%; (iv) interest rate in initial period: fixed for first 5 years, discounted NIR of 2.95%; (v) Variable for the remaining years; Euribor NIR at 1 year +0.85%; (vi) monthly payment for the first 5 years fixed: €707.42; (vii) monthly payment for the remaining years variable: €810.64; (viii) Discounted variable APR: 4.582%; (iv) number of instalments: 300; (x) total amount due (including costs): €252,341.46; (xi) Total loan cost: €102,341.46 (xii) Interest: €86,997.86. French repayment system. 1
The discounted APR may vary depending on the term and the transaction amount, as well as the monthly checks on whether customers continue to meet the terms and conditions of discount. Benchmark rate: 1-year Euribor (3.650%) published in the Official State Gazette (BOE) number 159 of 2 July 2024.
2. Representative example for ImaginBank Non-Discounted Hybrid Mortgage with 5 years at fixed rate and remaining years at variable rate:
Variable APR without discount: if the discount conditions are not met: (i) amount: €150,000; (ii) duration: 25 years; (iii) arrangement fee 0%; (iv) interest rate in initial period: fixed for first 5 years; NIR 3.70% (v) Variable for remaining years; Euribor NIR at 1 year + 1.60%; (vi) monthly payment for the first 5 years fixed: €767.12; (vii) monthly payment for the remaining years variable: €875,71 (viii) Variable APR: 5.103%; (iv) number of instalments: 300; (x) total amount due (including costs): €265,875.67; Total loan cost: €115,875.67; (xii) Interest: €106,96.57. French repayment system. 1
The Variable APR without discount may vary based on the term and transaction amount. Benchmark rate: 1-year Euribor (3.650%) published in the Official State Gazette (BOE) number 159 of 2 July 2024.
Common Terms and Conditions for the discounted variable APR and the non-discounted variable APR:
a) Remaining life of the mortgage from 6th year onwards: The interest rate is made up of a one-year Euribor variable rate, which is reviewed every year, and a fixed percentage (the spread).
The index is called the one-year Euribor, published by the Bank of Spain on a monthly basis in the Official State Gazette. The current circumstances of this sum and its economic burden, as well as its behaviour and historical variations, can be viewed at www.boe.es and the Spanish National Institute of Statistics, www.ine.es, which shows the performance of different mortgage indices and the average interest rates when mortgages are arranged, both in fixed and variable interest loans.
This index is defined as a simple monthly mathematical average of daily values of the Euribor benchmark as set out in the annex of Commission Implementing Regulation (EU) 2016/1368 of 11 August 2016 establishing a list of critical benchmarks used in financial markets pursuant to Regulation (EU) 2016/1011 of the European Parliament and of the Council. The index is benchmarked against the 12-month Euribor.
To determine the nominal interest rate applicable, the last rate published in the Official State Gazette on the last day of the second month prior to the start of each yearly review period shall be taken into account. If different index values are published in the same month, the value of the index published on the date closest to the start of the review period will be taken into account. Example: for a transaction in which the review period begins on 1 March, the value of the benchmark rate to be taken into consideration will be that published in the Official State Gazette in January.
b) Financial: The early repayment fee and the calculation of the financial loss that the Bank may suffer due to this repayment are legally regulated within the following limits, which CaixaBank applies in its offers: for tranches at a fixed rate, a compensation or commission for total or partial repayment can be applied that may not exceed the amount of the financial loss that CaixaBank may suffer, with a limit of 2% of the principal repaid during the first ten years of the contract, and 1.5 % of the principal repaid until the end of the life of the loan; for tranches at a variable rate, a compensation or commission for total or partial early repayment can be applied that may not exceed the amount of the financial loss that CaixaBank may suffer, with a limit of 0.15% of the principal repaid during the first five years of the contract, and 0.00% of the principal repaid until the end of the life of the loan. In the specific case of the mortgage promoted, the maximum applicable limit of the early repayment fee would be 2% during the first five years of the term of the fixed-rate contract. For the rest of the term at a variable rate, no early repayment fee may be charged.
c) Preparatory expenses paid by CaixaBank: (i) taxes: €1,125.00 in documented legal acts for a mortgage liability of €150,000.00 and a tax rate of 0.75%; (ii) registry verification: €10.91; (iii) notary: €597.00; (iv) management: €363.00; (v) registration: €283.00.
d) Preparatory expenses to be paid by the customer: taking into account that you can either request the appraisal through CaixaBank or provide it yourself: (i) valuation: €254.10 (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).
e) Related additional services to be paid for by the customer: the customer must take out a mandatory damage insurance policy. CaixaBank does not sell damage insurance; as a result, 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 Variable APR, 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: €317.00 annual premium. 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 principal 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). The amount is the result of a calculation made based on a guidance screening, thus, the value may 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 and €15 per quarter in the case of an everyday account.The calculation of the discounted APR will take this maintenance cost into account. The calculation of the discounted and non-discounted Variable APR will take into account this maintenance fee.
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 euros 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 Variable APR, 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) this Variable APR has been calculated under the assumption that the benchmark rates do not vary, therefore, it will fluctuate with the interest rate revisions. (v) The calculation of the annual equivalent rate is based on the present value of the nominal interest rate corresponding to the variable interest stage, based on the 1-year Euribor reference rate plus a spread, in order to show the APR scenario that is most in line with the borrowing rate set; (vi) The maturity of the transaction shall be such that the age of the youngest party is no more than 80 years old at the end of the term.
1 French amortisation schedule: a constant payment consisting partially of principal 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 principal at the start of each monthly period. The difference to the amount of the payment is the part corresponding to principal repayment.
Every month, interest must be paid on the outstanding principal. When the loan is first taken out there is a lot of principal to repay, which is why the interest payment is higher than the principal payment at first. As we want instalments to remain constant, the interest part declines, and the principal part increases as time progresses.
The instalment amount remains unchanged as long as the interest rate does not change. For example, if we 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, twenty years later, the final payment would be €1.85 in interest and €591.04 in capital.
Mathematical formula (French fee)
ak = Ck* [(r/m) / [1 - [1 + (r/m)]⁻ⁿ]]
where "ak" is the hybrid principal and interest payment; "Ck" the outstanding principal at the start of the period; "r" 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.
