Fees, commissions and interest rate are defined in the Mortgage Loan/Home Equity Loan Price List. The details of the principles and conditions for granting mortgage loans/home equity loans are stipulated in the Credit Regulations for individuals within mortgage banking at Bank Millennium S.A. The Regulations and Price List are available at the Bank’s branches and at www.bankmillennium.pl website. Before granting Loan/Home Equity Loan, the Bank assesses the Borrower’s credit capacity and credibility on a case-by-case basis; in justified cases the Bank may refuse to grant a loan.
Annual Percentage Rate (APR) is 4,60% and was calculated at WIBOR 3M 1,73% (as at 30.06.2017). Total mortgage loan (without costs financed with the loan) is 230 000 PLN, total amount to be paid by the consumer is 381 662,69 PLN, variable interest rate 4,03%, total cost of mortgage loan 151 662,69 PLN (including: commission for loan granting 0 PLN, interest 135 350,98 PLN, commission for increased risk until mortgage entry is made in the land and mortgage register for 6 months 1 152 PLN, property insurance against fire and other accidents according to the offer available through the Bank 6 300 PLN, life insurance according to the offer available through Bank 8 060,71 PLN, fee for valuation of the property 480 PLN, PCC/tax on civil law transactions and court fees for establishment and deletion of mortgage – total of 319 PLN), credit period 25 years, loan instalment 1 217,84 PLN, number of instalments 300. The calculation was performed as at 01.07.2017 on a representative example assuming that the loan will be secured with a mortgage on the newly purchased property, whereas the value of the property to secure the loan is 285 000 PLN, credit margin is 2,30% as the Client holds Konto 360° account, under the condition of monthly inflow of remuneration or another net income to this account and holding a debit card to this account, and performing with this card non-cash transactions in the amount of minimum 500 PLN per month. In case of Konto 360° account, this account is then kept by the Bank free of charge and the fee for the debit card to this account is 0 PLN.
In case of loans with variable interest rate, a standard offer on the Polish market, there is a risk of changes in the interest rates. The risk of changes in the interest rates means that if the reference rate goes up, the interest rate of the loan will be higher, and then the monthly principal-interest instalment will increase, which will consequently result in increase in the cost of interest and thus, increase in the total cost of the mortgage loan.
Client may present property insurance or life insurance – from outside the offer acquired through the Bank – concluded with an insurer from the list published by KNF. Loan with LTV (total amount of the mortgage loan to the value of securing property) above 80%, but not higher than 90%, can be granted exclusively with an additional collateral in the form of high LTV insurance.