Fixed-rate Casa Eficiente Mortgage

To request an Efficient House Mortgage, you need:

• Have an A or B consumption rating on the energy efficiency certificate for the home you want to buy.
• Reside in Spain.
• Have income and assets only in euros.
• Have an account with BBVA, where the monthly payments and other mortgage-related transactions will be charged. 
• Have an insurance policy for damage to the property for the duration of the mortgage. The insured amount must match the appraised value, not including the land value. The insurance policy, which does not have to be from BBVA, must cover any damages to the property caused by fire, explosions, or natural causes. The bank must appear on the policy as the beneficiary of the outstanding amount.

Please note that the granting of a mortgage is subject to authorization by the bank.

Yes, you can pay off your mortgage early in part (minimum €300) or in full. 

In addition to the amount you wish to repay, you will have to pay interest and an amount as compensation for early or partial repayment, equivalent to the financial loss that the Bank may sustain and which may be:

• In the first 10 years: limited to 2% of the principal repaid in advance.
• From the 11th year (inclusive): limited to 1.5% of the principal repaid in advance.

Remember that before doing so, you have to read the information we will provide you, which details the consequences of each of the payments so that you can evaluate each of the options. 

You have to request the information 30 days in advance at your BBVA branch.

If you have repayment insurance and you pay off the entire loan, your insurance will be interrupted. If you have paid your insurance for longer than your Efficient Home Mortgage lasted, you will be refunded the difference.

Alternatively, you can transfer the insurance to a new beneficiary within seven business days.

There are two costs associated with buying a home: those associated with the mortgage loan and others with purchase and sale transactions.

Mortgage loan expenses are paid by the bank: registration, notarial fees, processing and stamp duty. Although the appraisal is a mortgage expense that is paid by the buyer.

The process is a bit different in the Basque Country where regional regulations require the buyer to pay the stamp duty.

Purchase and sale expenses have nothing to do with the mortgage. Therefore, the bank is not responsible for paying them. These include the following expenses: Taxes (e.g., property transfer tax, VAT, and inheritance tax) and management, notary public, and registration costs.

To request your Efficient Home Mortgage, you have to provide certain documents, including your updated employment history and your personal income tax return or proof of income (e.g., your last 3 paychecks). 

As you go through the process, we will tell you the exact documents you need to submit.

You can read the Pre-Contractual Information Sheet (FIPRE), where you will find basic information on our mortgages, and information document CBP RDL 6/2012 for the viable restructuring of mortgage-backed debts, and CBP RDL 19/2022 and ACM to alleviate the rise in interest rates on mortgage loans on primary residences.

Your BBVA adviser will also answer all your questions and accompany you throughout the process. Once the study is complete and the loan is deemed feasible, your adviser will give you the European Standardised Information Sheet (ESIS).

They are calculated using the French repayment system. This calculation system makes the monthly payment as constant as possible. It can only vary if the interest rate changes or if you make early payments.

To calculate the payments with this system, we use the following formula: (C*i/m)/(1-(1+i/m)^(-m*n), where C is the amount borrowed, i is the annual nominal interest rate, m is the number of annual payments and n is the years in which you will repay the loan. 

Let's look at an example using the formula. If you have a €150,000 loan at an annual interest rate of 2.50% and you repay it monthly (12 installments a year) for 25 years, each monthly payment will be €672.93. 

Here is the formula, with the sample figures: (150,000x0.025/12)/(1-(1+0.025/12)^(-12x25) = €672.93

With each installment, you pay off part of the interest and the principal on the loan. If you want to know how much each amount represents, you can calculate it as follows:

• To calculate the interest of each installment, divide the interest rate by the number of annual payments and multiply it by the amount borrowed.
• To calculate how much principal you're paying back (amortization), subtract the interest from the monthly payment.

We remind you that in the type of system we use (French repayment system), more interest is paid in the first installments and less in the last.

If you don't make the payments on your Efficient Home Mortgage, you could lose your home. Remember that the mortgage holders must respond to BBVA with all their assets and rights, current or future. If another person provides a guarantee (e.g., a guarantor), they will have the same responsibility as the mortgage holders, unless otherwise indicated in the contract. 

Remember that when you take out a mortgage, you establish a relationship with the bank. This relationship comprises two elements: The main loan agreement and the mortgage. Let's take a closer look at these terms:

• Main loan agreement: this document is produced when a financial institution (the creditor) lends an amount of money to someone (the debtor).
• Mortgage: The debtor (or another person) offers property as a guarantee that the loan will be repaid. Therefore, if the agreed payment commitments are not fulfilled, the bank can sell the property in a public auction to collect the amount owed. If the sale results in excess money, this amount is used to pay other creditors or, failing this, the debtor. 

The NIR (Nominal Interest Rate) is what you pay the bank to lend you money. The NIR is usually less than the APR and is not a useful comparison of the prices of different mortgages, since it only includes the interest rate and not all the transaction fees.

The APR (Annual Percentage Rate) indicates the cost of a financial product, such as a loan, including both the interest and different expenses and fees involved. This figure lets you compare different mortgages, because the lower the APR, the cheaper the mortgage.