At the deed signing stage, when there is a mortgage on the property being sold or transferred, this protocol waives the need to issue a mortgage release document. The deed is executed under the APB interbank protocol. The creditor bank receives an electronic transfer from the new financing bank, eliminating the need for the physical presence of a bank representative and the mortgage release document on the day of the deed. The request is made by the selling client at the bank where the mortgage is registered.

The Annual Percentage Rate is the measure of the total annual cost of a loan, including interest and any associated fees, such as commissions and required insurance.

The Annual Percentage Rate of Charge (APRC) measures the total cost of credit for the consumer, expressed as an annual percentage of the loan amount granted. It differs from the APR by including taxes associated with the loan. The APRC is the cost measure used for mortgages, other property-related loans, and consumer credit. It is disclosed in the pre-contractual information provided to the client.

The Nominal Annual Interest Rate (NIR) is the rate at which interest is charged on a loan. For variable-rate loans, the NIR corresponds to the reference rate plus the margin (spread).

It is an indicative percentage related to the proportion of a household’s income allocated to paying all financial obligations, such as mortgage or consumer loans. It measures the household’s ability to meet its financial commitments. Most banks do not grant loans to clients with an effort rate above 35%.

The interest rate is the percentage charged by the bank on the loan amount, representing the cost of borrowing money.

It is a loan where the amount is released in multiple installments (tranches) according to the client’s needs. Tranche financing is used for self-construction or renovation projects. Funds are released gradually based on the progress of the work, following inspection requests. During this period, there is a capital grace period, meaning the client only pays interest. Once the project is completed and the full loan amount is released, repayments of both principal and interest begin.

It is the main home of the mortgage borrower, where they and their household maintain their primary family life.

A mortgage is a real guarantee that gives the creditor the right to be paid from the value or income of certain properties or equivalent assets owned by the debtor or third parties, with priority over other creditors who do not benefit from a special privilege or registration priority. Mortgages may be legal, judicial, or voluntary, with voluntary mortgages being the most common.

Mortgage Default occurs when the borrower fails to meet their credit contract obligations on time, namely by not paying the full amount of an installment. Until the credit agreement is terminated, the borrower is considered to be in arrears. Once the contract is terminated, the default becomes definitive, and all amounts due become immediately payable.

Indexation is the linking of a specific variable to a reference indicator (for example, calculating a variable interest rate based on Euribor).

The reference rate is the interest rate used as a benchmark for variable-rate loans and deposits. The applicable interest is calculated based on the nominal interest rate, which in the case of variable rates corresponds to the sum of the reference rate and a spread. Euribor is the most commonly used reference rate. In credit agreements, the reference rate is reviewed according to its maturity period (for example, 3-month Euribor, 6-month Euribor, etc.).

The spread is the profit margin that credit institutions add to mortgage loans. It varies from bank to bank. Banks may adjust the spread based on the loan amount, the percentage of financing, and, in some cases, the term. Your own capital and subscribing to other bank products can also influence the spread in certain banks.

It is a financial product provided by banks with the purpose of financing the purchase of a home. It is a loan agreement between a credit institution and a consumer for a predetermined period, used for the acquisition, construction, or renovation of a primary residence, secondary home, or rental property, as well as for the purchase of land for building a personal residence.

A guarantor is someone who provides a guarantee. This is the person responsible for paying the debt if the borrower fails to do so.

A guarantee consists of a commitment provided by the guarantor regarding the fulfillment of an obligation owed by the debtor. When a guarantee is given, the guarantor becomes responsible for paying the debt with all of their assets, as it is a personal guarantee. Generally, the guarantee is limited to the amount of the debt it covers.

A FINE (European Standardised Information Sheet) is a document provided by banks that contains standardized information about a mortgage or credit agreement, helping consumers understand the terms, costs, and conditions before signing the contract.

Costs vary from bank to bank. They include fees for loan assessment, document preparation, application processing, formalization, and property appraisal. You also need to consider the payment of municipal property tax (IMI) and the property transfer tax (IMT).

Life insurance, covering death and disability, with a capital amount equal to the loan, ensures the debt is repaid in case of incapacity or death. Home multi-risk insurance covers property damage in the event of fire or earthquake and must be taken out for the rebuilding value of the property. Consumers can choose their preferred insurer, provided the policy meets the minimum coverage and requirements set by the bank.

Fixed rate loans have an interest rate that stays the same, providing stable monthly payments. Variable rate loans can change over time with the market, so payments may increase or decrease.