APR FOR PERIODICALLY FIXED INTEREST RATE
Annual Percentage Rate (APR) is 11,42% and has been calculated with the assumption that the interest rate during the first 60-month fixed-rate period is 6,99% (as of 14.02.2023), while later the variable interest rate is 11,04 and WIBOR 6M is 7,31% (as of 31.01.2023). If at the time of APR calculation, the fixed interest rate is higher than the variable interest rate, then the APR calculation after the fixed rate period shall use the fixed interest rate. The total amount of the consolidation loan (net of loan-financed costs) is 202 859,00 PLN, total amount to be repaid by the consumer 633 152,85PLN, total cost of the consolidation loan 430 293,85 PLN (including: fee for loan approval 0 PLN, interest 407 377,62 PLN, fire and other accident insurance of the real property according to the offer available through the bank 8 932,00 PLN, life insurance according to the offer available through the bank 13 765,23 PLN, tax on civil law transactions 19 PLN and court charges for setting up the mortgage 200 PLN), loan tenor 25 years, loan instalment 1 869,81 PLN, number of instalments 319.
The calculation was made as of 14.02.2023 on a representative example, assuming that: the consolidation loan will be secured with a mortgage on a newly acquired real property worth 375 664,00PLN, loan margin is 4,05%, if you have a Millennium 360° account with us, which is credited every month with your salary or other net income and have a debit card with this account, and you make non-cash transactions with this card in the amount of at least 500 PLN per month. The Millennium 360° account is kept free of charge. The for service of the debit card or BLIK contactless payments is 0 PLN, if in the previous month i.a. you pay once with the card or by BLIK (if you are aged 18-26) or 5 times (if you are aged over 26).
Fees, commissions and interest rate are specified in the Mortgage/Home Equity Loan Price List. Details regarding principles and conditions of granting loans are stipulated in the Regulations on Lending to Individuals in Mortgage Banking in Bank Millennium S.A. The Regulations and the Price List are available in the Bank’s branches and on the www.bankmillennium.pl. website. Before granting a loan the Bank evaluates the Applicant’s credit capacity and worthiness on a case-by-case basis; in justified cases it may refuse to grant the loan.
The Customer may present, as security of the Bank’s receivables, real property or life insurance - not from the offer available via the Bank - under an insurance agreement concluded with an insurer from the list published by KNF. Granting a loan with LTV (total value of the mortgage loan to value of the real property securing the loan) above 80%, however no more than 90%, is possible only with additional security in the form of high LTV risk insurance.
A fixed interest rate shall remain valid for 5 years. During this period the principal and interest instalment amount of your loan will not change, because it does not depend on changes in a benchmark. There is the risk that during the fixed interest rate period your monthly payment may be temporarily higher than if it were calculated on the basis of the current WIBOR 6M reference rate, used as the benchmark in calculating a variable interest rate. If the maximum interest rate decreases during the fixed interest period, the fixed interest rate will not change during this period. After the end of a 5-year period you can choose to apply a periodically fixed interest rate (note: it may differ from the interest rate in the previous period) for a further period of 5 years (similarly in the following periods) or to apply a variable interest rate. When you were repaying your loan instalments at a fixed interest rate, the WIBOR 6M benchmark may have increased. This means that after the end of the fixed rate period your instalment may be higher, and the total cost of the mortgage loan will grow.
During the period when a variable interest rate is applied there is a risk of interest rate fluctuations. The risk of interest rate fluctuations means that if the WIBOR 6M reference rate increases the interest rate on the loan will be higher; the amount of the monthly principal and interest instalment will then increase and this in turn increases the cost of interest and thus the total cost of the mortgage loan. If the reference rate is zero or negative, the interest rate on the loan during this period will be equal to the Bank’s margin.