In the representative examples, to calculate the instalment of the first 3-year tranche in the discounted mixed mortgage, we would replace N with 150,000 (initial mortgage principal), i with 0.0299 (nominal annual interest rate for the first three years divided by 100), p with 12 (number of instalments to be paid per year) and t with 30 (number of years), to give a payment of 631.60 euros to be paid each month.
In the example above, the interest payment portion of the instalment is calculated by replacing N with 150,000 (initial mortgage principal), i with 0.0299 (nominal annual interest rate for the first three years divided by 100) and p with 12 (number of repayment periods in one year), to give an amount of 373.75 euros, which is the interest of the first month’s instalment. The remaining amount of the instalment after deduction of interest is what is assigned to the repayment of the principal.
In the representative examples to calculate the instalment of the first 3-year tranche in the non-discounted mixed mortgage, we would replace N with 150,000 (initial mortgage principal), i with 0.0389 (nominal annual interest rate for the first three years divided by 100), p with 12 (number of instalments to be paid per year) and t with 30 (number of years), to give a payment of €706.64 to be paid each month.
In the previous example, we would replace N with 150,000 (initial mortgage principal), i with 0.0389 (nominal annual interest rate for the first three years divided by 100), p with 12 (number of instalments to be paid per year) to give a payment of €486.25 to be paid each month.(initial mortgage principal). The remaining amount of the instalment, once the interest part has been deducted, is what It is used for principal repayment.
In the representative examples, to calculate the installment in the subsidized fixed mortgage we would substitute "N" for 150,000 (initial capital of the mortgage), "i" for 0.0340 (nominal annual interest rate divided by 100), "p" for 12 (number of installments to be paid per year) and "t" for 30 (number of years), obtaining an installment of 665.22 euros to be paid each month.
In the above example, the interest portion of the installment is calculated by substituting "N" for 150,000 (initial mortgage principal), "i" for 0.0340 (nominal annual interest rate divided by 100) and "p" for 12 (number of amortization periods in a year), resulting in an amount of €425 corresponding to the interest on the first month's installment. The remaining amount of the installment, after deducting the interest portion, is what is used for capital amortization.
In the representative examples, to calculate the installment in the non-subsidized fixed mortgage we would substitute "N" for 150,000 (initial capital of the mortgage), "i" for 0.0440 (nominal annual interest rate divided by 100), "p" for 12 (number of installments to be paid per year) and "t" for 30 (number of years), obtaining an installment of 751.14 € to be paid each month.
In the above example, the interest portion of the installment is calculated by substituting "N" for 150,000 (initial mortgage principal), "i" for 0.0440 (nominal annual interest rate divided by 100) and "p" for 12 (number of amortization periods in a year), resulting in an amount of €550 corresponding to the interest on the first month's installment. The remaining amount of the installment, after deducting the interest portion, is what is used for capital amortization.
In the representative examples, to calculate the installment in the subsidized variable mortgage we would substitute "N" for 150,000 (initial capital of the mortgage), "i" for 0.0289 (nominal annual interest rate divided by 100), "p" for 12 (number of installments to be paid per year) and "t" for 30 (number of years), obtaining an installment of 623.54 € to be paid each month.
In the above example, the interest portion of the installment is calculated by substituting "N" for 150,000 (initial mortgage principal), "i" for 0.0289 (nominal annual interest rate divided by 100) and "p" for 12 (number of amortization periods in a year), resulting in an amount of €361.25 corresponding to the interest on the first month's installment. The remaining amount of the installment, after deducting the interest portion, is what is used for capital amortization.
In the representative examples, to calculate the installment in the non-subsidized variable mortgage we would substitute "N" for 150,000 (initial capital of the mortgage), "i" for 0.0389 (nominal annual interest rate divided by 100), "p" for 12 (number of installments to be paid per year) and "t" for 30 (number of years), obtaining an installment of 706.64 € to be paid each month.
In the above example, the interest portion of the installment is calculated by substituting "N" for 150,000 (initial mortgage principal), "i" for 0.0389 (nominal annual interest rate divided by 100) and "p" for 12 (number of amortization periods in a year), resulting in an amount of €486.25 corresponding to the interest on the first month's installment. The remaining amount of the installment, after deducting the interest portion, is what is used for capital amortization.
Amortization system and formula for calculating principal and interest amortization:
- The French amortization system is used to calculate the installment to be paid, which is characterized as a system of constant installments. That is to say, the same amount is paid every month, provided that the interest rate applicable to the transaction does not vary during the settlement period, or that no early amortizations are made.
- The mortgage installment is composed of a part of interest and a part of amortization of the total amount of the loan. Since the installment to be paid is constant, as the outstanding principal of the mortgage is reduced, the interest generated on this principal is lower. Therefore, during the early years of the mortgage, a greater amount of interest is paid than principal and during the final period of the loan, more principal and less interest is paid.
Representative examples:
MIXED MORTGAGE.
The current reference rate is the Euribor at 1 year of the month of October of 2023 published by the Bank of Spain on November, 3rd, 2023: 4.160%.
The variable APR of the following examples has been calculated on the assumption that the reference rates remain unchanged, therefore, this variable APR will vary with revisions of the interest rate, the repayment term and the amount financed, and it will be revised every six months from the fourth year.
In the event that the fixed interest rate applicable during the first 3 years is higher than that resulting from the sum of the agreed differential and the current reference rate on the contracting date, this fixed interest rate will be used to calculate the APR for the entire life of the operation. In the event that the fixed interest rate applicable during the first 3 years is less than the result of the sum of the agreed differential and the reference rate in force on the date of contracting, the variable APR will be calculated on the basis of the fixed rate for the first period and the variable rate for the second interest period.
2) DISCOUNTED MIXED MORTGAGE
- 2.99% NIR fixed tranche the first 3 years, Euribor+0.65% NIR variable tranche the rest of the years.
- 5.07 % variable APR
- Term: 30 years (for other repayment periods, consult your branch)
- Instalments: 36 instalments of €631.60 /month. 323 instalments of €774.19 /month and a final instalment of €772.34 .
- Total amount of the mortgage loan: Mortgage amount: 150,000 euros
- Total cost of the mortgage: €142,183.43 (€123,573.31 in interest)
- Total amount payable: €292,183.43
- Maximum discounted: direct deposit of salary or pension taking out associated insurance: Constant Principal Life Protection Insurance and Home Protection Insurance with Banco Sabadell.
3) NON-DISCOUNTED MIXED MORTGAGE
- 3.89% NIR fixed tranche the first 3 years, Euribor+1.55% NIR variable tranche the rest of the years.
- 5.74% variable APR.
- Term: 30 years (for other repayment periods, consult your branch).
- Instalments: 36 instalments of €706.64/month. 323 instalments of €858.09/month and a final instalment of €861.20.
- Total amount of the mortgage loan: €150,000.
- Total cost of the mortgage: €164,467.83 (€153,463.31 in interest).
- Total amount payable: €314,467.83.
VARIABLE MORTGAGE
The current reference rate is the 1-year Euribor for the month of October 2023 published by the Bank of Spain on November 3rd, 2023: 4.160%.
The variable APR of the following examples has been calculated under the assumption that the reference rates do not vary, therefore, this variable APR will vary with the revisions of the interest rate, the amortization term and the amount financed, and its revision will be every six months from the second year.
In the event that the fixed interest rate applicable during the first year is higher than that resulting from the sum of the agreed differential and the reference index in force on the date of contracting, this fixed interest rate will be used to calculate the variable APR for the entire life of the operation.
4) BONUS VARIABLE MORTGAGE
- 2.89% NIR the first year, Euribor +0.50% NIR the rest of the years.
- 5.66% variable APR.
- Term: 30 years (for other repayment periods, consult your branch).
- Instalments: 12 instalments of €623.54 /month. 347 instalments of €769.96/month and a final instalment of €771.77.
- Total amount of the mortgage loan: Mortgage amount: €150,000.
- Total cost of the mortgage: €159,090.89 (€125,430.37 in interest).
- Total amount payable: €309,090.89.
- Maximum discounted: direct deposit of salary or pension taking out associated insurance: Constant Capital Life Protection Insurance, Home Protection Insurance and Total Payment Protection Insurance with Banco Sabadell.
5) VARIABLE MORTGAGE NOT SUBSIDIZED
- 3.89% NIR the first year, Euribor +1.50% NIR the rest of the years.
- 5.99% variable APR.
- Term: 30 years (for other repayment periods, consult your branch).
- Instalments: 12 instalments of €706.64 /month. 347 instalments of €862.53 /month and a final instalment of €858.97.
- Total amount of the mortgage loan: €150,000.
- Total cost of the mortgage: €169,641.08 (€158,636.56 in interest).
- Total amount payable: €319,641.08.
FIXED MORTGAGE
The APR of the following representative examples may vary depending on the repayment term and the amount financed.
6) FIXED MORTGAGE SUBSIDIZED
- 3.40% NIR (4.53% APR).
- Term: 30 years (for other repayment periods, consult your branch).
- Instalments: 359 instalments of €665.22/month and a final instalment of €666.39 .
- Total amount of the mortgage loan: €150,000.
- Total cost of the mortgage: €121,719.19 (€89,480.37 is interest).Total amount payable: €271,719.19.
- Maximum discounted: direct deposit of salary or pension taking out associated insurance: Constant Capital Life Protection Insurance, Home Protection Insurance and Total Payment Protection Insurance with Banco Sabadell.
7) NON-DISCOUNTED FIXED MORTGAGE
- 4.40% NIR (4.85% APR)
- Term: 30 years (for other repayment periods, consult your branch). Instalments: 359 instalments of € 751.14/month and a final instalment of € 752.19.
- Total amount of the mortgage loan: €150,000.
- Total cost of the mortgage: €131,415.97. (€120,411.45 is interest).
- Total amount payable: €281,415.97.
2) What does the variable APR calculation include?
- Arrangement fee: €0 (0%).
- Total amount of the mortgage interest: 120,411.45 euros.
- Setting up a Relación Account: €50/quarter.
- Home Protection Insurance: the cost of taking out this insurance, which includes damage coverage through Banco Sabadell, is €12.99/month. The cost of this insurance will vary depending on when it is taken out and, among other factors, on the characteristics of the property to be mortgaged, the insured amount and the guarantees contracted. The amount shown is merely indicative, taking as an example a mortgage loan with a principal of €150,000 and for a building valued at €100,000.00 whose type of home is on an intermediate floor with a built area of 100 m2.
- Constant capital life insurance with a quarterly premium to be maintained throughout the life of the mortgage: €63.38 /quarter (example for a 30-year-old man).
- Costs of registry checks: €25.41.
- Valuation costs: €302.71.
A half-yearly review will be made of the contracting of the products on which the applicable interest rate is contingent if contracting the mortgage with a discount.
2) and 4) Regarding the variable tranche, a six-monthly review will be carried out taking into account the date the mortgage was contracted. In it, the products eligible for discounts that the contracted customer has will be reviewed, as well as the Euribor to apply.
3 and 5 Regarding the variable tranche, a six-monthly review of the Euribor to be applied will be carried out.
4) and 6) What is included in the calculation of the variable APR and APR?
- Arrangement fee: 0 € (0%).
- Total amount of interest on the subsidized fixed mortgage: 89,480.37 € and on the subsidized variable mortgage: 125,430.37 €.
- Contracting a Relation Account: 50 €/quarter.
- Home Protection Insurance: the cost for contracting this insurance, which includes damage coverage through Banco Sabadell, is €12.99/month. The cost of this insurance will vary depending on the time of contracting and, among other factors, on the characteristics of the property to be mortgaged, the insured capital and the guarantees contracted. The amount shown is merely indicative, taking as an example a mortgage loan whose capital amounts to 150,000 € and for a building of 100,00.00 € whose type of property is an intermediate apartment with a surface area of 100 m2 built.
- Constant capital life insurance with a quarterly premium to be maintained throughout the life of the mortgage: 63.38 €/quarter (example for a 30 year old man).
- Total Payment Protection Insurance with an annual premium to be maintained throughout the life of the mortgage: €501.68/year for the discounted variable mortgage and €454.29/year for the discounted fixed-rate mortgage. With coverage of 100% of the mortgage payment in the event of unemployment or sick leave (example for an employee with a permanent contract).
- Registry verification costs: €25.41.
- Appraisal costs: €302.71.
There will be a six-monthly review of the contracting of the products to which the applicable interest rate is conditioned in the case of contracting the mortgage with a discount.
3), 5) and 7) What is included in the calculation of the variable APR and APR?
- Arrangement fee: 0 € (0%).
- Total amount of interest for the mixed mortgage without subsidy: 153,463.31 € and for the variable mortgage without subsidy: 158,636.56 € and 120,411.45 euros for the fixed mortgage without subsidy.
- Contracting a Relation Account: €50/quarter.
- Compulsory damage insurance for the whole life of the mortgage (it is not necessary to contract it with Banco Sabadell): Banco Sabadell does not market insurance that only includes damage coverage, therefore, the calculation of the APR has been made taking into account the premium resulting from simulating Banco Sabadell's Home Protection insurance (which includes damage coverage) whose cost has been estimated at €12.99/month. The cost of this insurance will vary depending on the time of contracting and, among other factors, on the characteristics of the property to be mortgaged, the insured capital and the guarantees contracted. The amount shown is merely indicative taking as an example a mortgage loan whose capital amounts to 150,000 € and for a building of 100,000.00 € whose type of property is an intermediate apartment with a surface area of 100 m2 built.
- Costs of registry verification: 25.41 €.
- Appraisal costs: 302,71 €.
Differences between combined and separate product offerings:
The offer of products combined or separately will affect the costs I and the cancellation advance payment II of the loan or its combined products.
I) Costs. The cost of contracting the Home Protection, Constant Capital Life and total payment protection insurance is independent of contracting the loan, so it has the same cost as if it was contracted individually.
II) Effects of early cancellation of the loan or any of the combined products. The effects that the early cancellation of the loan or any of the combined products would produce on the joint cost of the loan and the rest of the combined products or services will form part of the personalized information that will be provided through the European Standard Information Sheet (FEIN)
Additional Information:
Representative examples of loans with a mortgage guarantee on properties for residential use intended to finance the purchase of housing by individuals who act as consumers. Operation subject to prior approval by Banco Sabadell. The advisory service is not provided. Interest rate conditions subject to risk analysis by Banco Sabadell. These conditions may vary depending on the result of the risk analysis. In accordance with article 1911 of the Civil Code, which enshrines the principle of universal responsibility, in case of non-payment, the debtor, and, where appropriate, their guarantors or joint guarantors and mortgage guarantors, will respond with all their present and future assets, being able to lose your home/s and/or any other property you own.
Additional information about the insurance associated with your mortgage:
- Home Protection and Total Payment Protection are insurance policies of BanSabadell Seguros Generales, S.A. de Seguros y Reaseguros, with NIF A64194590 and address at Calle Isabel Colbrand, 22, 28050 Madrid, registered in the Mercantile Registry of Madrid and in the Registry of Insurance Entities of the DGSyFP with code number C-0767.
- Protección Vida Capital Constante are insurance policies of BanSabadell Vida, Sociedad Anónima de Seguros y Reaseguros, with NIF A08371908 and address at Calle Isabel Colbrand, 22, 28050 Madrid, registered in the Mercantile Registry of Madrid and in the Registry of Insurance Entities of the DGSyFP with code no. C-0557.
Insurance mediated by BanSabadell Mediación, Banking-Insurance Operator Linked to the Banco Sabadell, S.A. Group, NIF A-03424223, with address at avda. Óscar Esplá, 37, 03007 Alicante, registered in the Mercantile Registry of Alicante and in the Special Administrative Register of Insurance Brokers of the DGSyFP with code number OV-0004, having subscribed civil liability insurance in accordance with the provisions of the private insurance and reinsurance distribution regulations in force at all times. You can check the insurance companies with which BanSabadell Mediación has entered into an insurance agency contract on the website www.bancosabadell.com/bsmediacion. Check here the information of the Insurance Broker.