Find out what changes with the new mortgage lending rules

In the current year (2018), mortgage loans and other mortgages have new rules.

 

With this brief explanation you will become better aware of the differences.

 

Contracts covered by the new rules:

 

 

- Mortgage guarantee mortgage loans

 

- Mortgage loans without mortgage guarantee

 

- Other credits secured by mortgage or other equivalent security usually used on real estate

 

- Financial leasing of immovable property

 

Consumers and guarantors now receive the European Standard Information Sheet (FINE), which is mandatory, which describes the main features of credit, which replaces the Standardized Information Sheet (FIN).

 

As was already the case with FIN, FINE should be made available to the consumer at two different times:

 

When simulating the loan and notifying the approval of the credit agreement.

 

The guarantors are also entitled to receive a copy of FINE from the approved loan and the draft of the credit agreement.

 

The contractual offer made to the consumer shall be valid for at least 30 days:

 

Credit institutions shall be bound by the contractual offer submitted to the consumer for a period of at least 30 days.

 

The contract can not be signed in the first 7 days:

 

With the entry into force of the new rules, the consumer and the guarantor have seven days from the submission of this proposal in order to be able to sign the contract.

 

It is intended to ensure that the consumer and the guarantor have sufficient time to consider the credit implications and make an informed decision.

 

The cost of credit is now assessed on the basis of the APR:

 

The credit cost measure becomes the APR (global effective annual percentage rate of charge), replacing the APR.

 

The APR more accurately measures the total cost of credit to the customer, including:

 

 

- Interest, commissions, taxes and other charges associated with the credit agreement;

 

- Insurance required to obtain credit;

 

- the costs related to the maintenance of an account, the opening of which is obligatory, which records payment and credit utilization operations;

 

- costs relating to the use of a means of payment enabling payment and use of credit to be carried out;

 

- Other costs relating to payment transactions;

 

- The emoluments relating to the registration of the mortgage, if known to the institution;

 

- The remuneration of the credit intermediary, if it is paid by the consumer.

 

In calculating the APR, the following are not included:

 

 

-The amounts payable due to non-compliance with any of the obligations of the credit agreement;

 

-The notary costs.

 

Source: Economic