Financial and Mortgage Portfolio Overview
Different features for different needs
Borrowers can choose from an array of solutions
Non-indexed loans
-
Higher debt burden to
begin with
Inflation does not
increase with the loan,
which is constantly
repaid
Faster asset formation
where the cost of
capital is paid every
month
Indexed loans
Lower debt burden to
begin with
Indexation is added to
the balance of the loan
Slower asset formation
in the beginning
Equal payments
Borrower pays the
same total amount
each month
Lower debt burden
initially
Much more common
(around 95% of the
portfolio)
Equal instalments
-
Borrower pays the
same amount of
principal each month
Higher debt burden
initially
Fixed interest rates
Variable interest
Loan term
rates
-
The debt service
burden varies
according to the
current interest rate at
any given time
Suitable if interest
rates are falling
No prepayment fees
Maximum loan period
is 40 years for non-
indexed loans and 30
years for indexed loans
Fixed rate
Fixed for 3 or 5 years on non-indexed loans. Interest rate
becomes variable once fixed rate period has elapsed
Fixed for 5 years at a time on indexed loans (then the interest
rate is reset every 5 years etc.)
Generally higher than variable interest rates
So-called prepayment charge (maximum 1%)
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August-September 2022View entire presentation