Mortgage Loan – Mortgage loans – Bank Millennium

Fees, commissions and interest rates are specified in the Mortgage/Home Equity Loan Price List. Details regarding the 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 website. Before granting a loan the Bank always 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 – outside the offer available through the Bank – under an insurance agreement concluded with an insurer from the list published by KNF. Granting a loan with an 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.