Loan dictionary

Change of contractual terms and conditions made in written form. Annex shall be signed if the Borrower e.g. changes the loan currency, prolongs the lending period etc.

A document containing information on the value of real estate and prepared by a licensed real estate valuer included in the list from the Polish Federation of Valuers' Association

Transfer of rights of the Borrower to another person e.g. the Bank

Temporary loan collateral, required by the Bank until final entry of the first mortgage on a residential real estate in favour of Millennium is entered.

Ability to repay the loan amount along with interest rates in time and amount due.

Change of loan currency during the lending period

Downpayment is the result of substraction between investment cost and the loan amount

Loan collateral intended to be valid throughout the whole lending period. Final collateral of Millennium mortgage loan is final entry of the first mortgage on a residential real estate entered in favour of Millennium.

Deviation (+/-) from the reference rate appropriate for the loan currency, expressed in percentage points, going beyond which results in a change of the interest rate

Period when the Borrower repays just interests on the loan disbursed. Typically grace period follows first tranche disbursement and lasts until repayment of the first principal-interest installment. From then on the Customer repays instalments comprising the principal and interests. Maximum grace period in Millennium is up to 24 months.

The cost covered by the Borrower until establishment of final collateral.

Total amount of principal and interest or interest-only payment (during the grace period) due for a given settlement period

Rate, according to which interest is calculated on the loan amount. Mortgage interest rate comprises a reference rate and the Bank's margin. Bank Millennium offers mortgage loans with variable interest rates. Interest rates change each 3 months.

An opinion about the real estate subject to financing, given by an authorised Millennium staff member, holding a relevant building construction license or by an external company acting upon the Bank's order on the basis of an analysis of investment costs, investment progress, commitment of downpayment by the Borrower and compliance with building regulations.
 

Loan repayment period

Part of the loan amount granted put at the Borrower's disposal in time and amount indicated in the Borrower's disbursement order, upon approval of the Bank.

A ratio describing the relation of loan amount against the value of collateral real estate.

Fixed value expressed in percentage points, established by the bank and being a constituent (along with the reference rate) of interest rate. The margin depends on loan purpose, loan amount and loan amount against the value of collateral real estate. The margin is fixed throughout the whole lending period.

Debt collateral in an unspecified amount, determines maximum level of liability. Maximum mortgage is established, when it is impossible to determine precise value of liability, e.g. in the case of F/X loans where future foreign currency exchange rate is unknown.

A form of loan collateral, limited property law established by the Borrower and the Lender by way of mortgage register entry (in section IV). Mortgage expires together wit debt it secures, upon its final repayment. The Borrower remains the owner of real estate, while the Bank has got the right to dispose of it when it is entitled to satisfy its claim.

A loan intended for repayment of a mortgage loan you have with another bank

A registry regarding the legal status of real estate. Information it contains concerns the location, ownership rights, perpetual usufruct and limited property rights, such as mortgages, usufruct, easements, mortgage or co-operative ownership right.
 

Evaluation of real estate market value in order to establish a loan collateral. Appraisal is carried out by a licensed real estate valuer included in the list from the Polish Federation of Valuers' Association. The appraisal is subject to further verification by an authorized Bank staff's member with regard to its merits, as well as technical and legal aspects.

Interest rate binding on the interbank market updated at dates specified in the loan agreement and being a constituent of loan interest rate. For applications submitted to Bank Millennium currently WIBOR 3M reference rate applies.
Interest rates change quarterly and they assume values from the last business day of the preceding quarter.

It is established for the transition period until the target loan collateral is established (e.g. typically temporary collateral of Millennium mortgage loans is bridge insurance)