More about housing loans

Your personal banker

To serve you better and to discuss all the details of your loan in a way that fully satisfies your needs, we have allocated personal bankers – highly trained staff – throughout our network. These individuals offer fast, responsible and professional services and you can discuss with them all the details to make your loan “tailor-made”.


Which housing needs are covered by our plans?

Our housing plans cover the purchase of a house or flat, a piece of land (when our customer intends to use the land for the construction of a house), for self-occupancy or for use as a holiday house.


What amount can you borrow for my housing plans?

A prerequisite for getting a housing loan is that the buyer needs to make a down payment. The maximum amount we can presently lend reaches 80% or 70% of the property value (depending on whether the purchase is made for self-occupancy or for a holiday house) and it is usually financed with a long-term loan – as indicated by the various housing loans of the bank.

We make sure that each one of our customers is able to repay the loan, and we always discuss this issue in detail, so that we can offer solutions in-line with your financial capabilities.


How is the total cost of your loan calculated?

The total cost of your housing loan consists of:

  • the interest
  • initial expenses paid to the bank
  • expenses paid to the state (e.g. mortgage/duty stamp)
  • expenses paid to third parties (e.g. property evaluation expenses)

Please note that if the loan is not repaid regularly, additional expenses may be incurred as explained below.


Useful information about the interest

Choosing your interest rate:

Your loan incurs interest which is calculated on the basis of the interest rate you’ve agreed with us. Usually there is a choice between variable interest and fixed interest rate for a specific period (e.g. 3 & 5 years).

Choosing fixed interest rate means that for the chosen period (e.g. 5 years) the interest rate remains fixed and it never varies. Therefore, your instalment is fixed. At the end of the fixed interest rate period, such loans change into loans with variable interest rate.

Choosing variable interest rate means that the rate may change at any given time (either up or down). The variable interest rate consists of the base (which may be Euribor or the bank’s basic interest rate for housing loans) plus the margin or surcharge. Each time the total interest rate changes, your loan instalment also changes.

How is interest calculated?

  • Interests is always calculated on the daily balance of the loan. As a result, and as time goes by, the interest decreases since the loan balance also decreases with the payments you’ve made.
  • Interest is calculated by multiplying the daily percentage of the interest rate of the loan by its daily balance.


What are the initial expenses?

Our housing loans incur initial expenses, paid when the loan is granted.

Initial Bank expenses:

  • Arrangement fees:  These are the bank’s expenses for the preparation and evaluation of your application.
  • Documentation fees: There is a fixed charge of €40 for loans up to €20.000 and €75 for loans greater than €20.000. To find out in detail all our charges, ask for a housing loan price list

Government expenses:

  • Mortgage underwriting expenses paid to the Land Registry.
  • Expenses referring to duty stamps for the loan’s documents, paid to the duty stamp officer.
  • Expenses paid to the Land Registry if it is required to transfer the deed from one owner to another.

Expenses paid to third parties:

Such expenses refer to the evaluation made on behalf of the bank by approved evaluators for properties that are being mortgaged, or for life and/or house insurance expenses.


What is the Annual Percentage Rate (APR)?

APR is the total cost of the loan, expressed as an annual percentage of the loan. APR includes all the details of the cost of borrowing (including the interest and all the expenses that the customer is asked to pay).

APR gives you a complete picture for all your loan expenses and it’s the best tool for comparing different plans, either within the same bank or from other banks.


Other expenses you may incur

What happens if I don’t go ahead with the loan approved by the bank?

You will incur a 0,5% on the amount of funding your have applied for, with a maximum amount of €850, as cancellation expenses of the approved loan.

What happens in case of gradual withdrawals from my loan?

In this case you will be charged with €20 each time you withdraw funds from your loan. If you decide to withdraw the entire amount of your loan immediately, then you do not incur any expenses.

What happens in case of early repayment / early payment of the loan instalments?

When a loan with fixed interest (at any time during the life of the loan) is repaid  early, in full or installments are paid prematurely, in relation to the agreed repayment schedule, then there is a possibility that you will be charged with early repayment fees.

Floating rate loans have no early repayment fees. 

What happens in case you fall behind in paying the instalments?

In case your loan is not repaid regularly, additional expenses are incurred. These expenses include a surcharge on the interest rate for the amount that has not been paid and a fixed amount each month.

Can I defer my instalment?

You have the right to defer payment of two instalments per year (with a total of 24 instalments for the entire duration of your loan) thus avoiding late-payment expenses. You must, however, notify your personal banker in time.

When should I pay my instalment? 

Your instalment must be paid regularly on the date set by the terms and conditions of your loan. To avoid unnecessary expenses for late payment, you should talk to your personal banker and set from the beginning a convenient date to pay your instalment. If, in the future, this date has to change, you should contact your personal banker in time to make the necessary changes. For your own convenience, it is better to give written instructions to the bank to pay your instalment automatically (directly) from your current account.

What happens if my situation changes and I have difficulty in paying the instalments as planned?

If your financial situation changes and you cannot meet your obligations and the regular payment of the instalments, you should contact your personal banker in time to arrange a new repayment plan that’s in-line with your new circumstances.


Explanation of banking terms


Euribor is the interbank borrowing rate of the “main” banks within Eurozone and applies for periods ranging from one week up to twelve months. Euribor is published daily at 11:00 o’clock Brussels time. Euribor is fixed for the period to which it applies. For example, for a loan the pricing of which is based on a 6-month Euribor, the base will be fixed for 6 months and it will be revised every six months.


What is the Annual Percentage Rate (APR)?

APR (Annual Percentage Rate) is the total cost of your loan (including interests and expenses you have to pay), expressed as an annual percentage of the amount you have borrowed.

APR gives you a complete picture for the total expenses of any loan and you can use it as a guide to compare different plans, either within the same bank or in relation to other banks.

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