Hipoteca Joven

This means that if you take out other BBVA products together with your mortgage, you can get a lower interest rate. Taking out these products is not required, but it can result in getting a better price:

• Comprehensive Home Insurance from BBVA Allianz.
• Loan Repayment Insurance from BBVA Seguros.
• Direct deposit and keep your income at BBVA. 
  

Yes, you can pay off your mortgage early in part (minimum €300) or in full. In addition to the amount you want to repay, you will have to pay interest and an amount as compensation for the early full or partial repayment that is equivalent to the financial loss that the Bank may sustain, and which may be:

Fixed-rate mortgage

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

Variable rate mortgage

• In the first 5 years: with a limit of 0.15% of the principal repaid in advance.
• From the 6th year (inclusive): 0% 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 payment 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 mortgage lasted, you will be refunded the difference.

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

The Hipoteca Joven is a loan for residents in Spain with income and assets in euros only, who are under 36 years old (all the borrowers) and want to purchase their primary residence.

Once the mortgage loan is finalized, the mortgaged property must be covered by damage insurance for the duration of the loan. The insured amount must match the appraisal value (not including the land value). The insurance policy (which you do not have to take out with 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.

You must also have a checking account with BBVA. This account will be used for any transactions associated with your mortgage, such as deposits and direct debits. See the pre-contractual documents of the loan for all the information on account administration and maintenance fees.

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

The NIR (Nominal Interest rate) is what you pay to a bank in exchange for receiving a loan. NIR is usually less than 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 loans, and includes both the interest and the various costs and fees associated with it. This figure lets you compare different mortgages, because the lower the APR, the cheaper the mortgage.

If you choose a fixed-rate mortgage, the interest rate never varies. However, if you do not satisfy the conditions for the discounts or you are not current on your mortgage payments, the payment could change.

If you opt for a variable-rate mortgage, the interest rate is made up of a fixed percentage (the margin) and a variable rate (the Euribor), which is reviewed every 12 months. Therefore, when it's time to review the mortgage, the payment could change to reflect changes in the Euribor and/or the discounts you might be eligible for on the interest rate.

Buying a property involves two types of expenses: 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 (AJD). In the Basque Country, the taxpayer is always the customer, and regional laws require the buyer to pay the stamp duty.

The bank will bear the cost of the notarial fees for the mortgage loan deed. By contrast, any copies will be paid for by the party that requests them. 

The 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.

The buyer pays for the appraisal.

Please consult the following documents for all the basic information on our mortgages:

• Pre-contractual Information Sheet (FIPRE)
• (Only for Andalusia) Supplementary pre-contractual information (DIPREC)
• Informative poster 
• 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 repayments.

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 amount.

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 fail to meet your payment commitments, 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.