better financial decisions for your mortgage

Tips, steps, procedures, comparison tools... Everything you need to get to your new home.

# MORTGAGE COMPARISON TOOL

## Fixed or variable mortgage. What are the differences?

And you will be able to do it. Here is the fixed-rate mortgage and the variable-rate mortgage next to it. Here are all of the factors to take into account for each one so you can say “this is better” or “I don't know” or “yes, of course, but what's that Euribor all about?”

## Fixed or Variable-Rate? Compare the details of all our mortgages.

A complete table with the main figures for both types of mortgage: fixed and variable-rate. Payments, features, advantages, interests, expenses... Everything in plain sight.

## Feels like something is missing, right? we will explain what the Euribor, NIR and APR are

### Euribor

It is the interest rate at which European credit institutions lend money to each other and it is the benchmark for variable-rate mortgages. The fixed part that you negotiate for your variable-rate mortgage is added to the percentage established by the Euribor, known as the spread. So, if the Euribor goes down your payment goes down, and if it goes up, it goes up.

• The Euribor varies and is revised depending on the market.

### NIR

It is the nominal interest rate. In other words, it is a fixed percentage that is agreed for a borrowed amount of money. It is the basis for calculating the APR, so it is important, but it is not a good reference to compare loans.

• It does not have to be annual and does not take into account expenses, etc.

### AER

The equivalent annual rate (APR) tells us the actual amount that will be paid for a loan. It is a mathematical formula that includes the NIR, the commissions, the term of the loan and the payment frequency.

• It is therefore the most useful benchmark for comparing mortgages of the same type and term.
• For variable-rate mortgages, the APR is for reference only because it will also vary with the Euribor.

## Why is it helpful to use a mortgage comparison tool?

The mortgage comparison tool will help you to analyse, understand and make decisions about the various mortgages on the market: fixed-rate, variable-rate, mixed-rate, etc. It is essential to be able to see at a glance the advantages, conditions, prices and other factors of each mortgage so that you can decide which one best suits your expectations and circumstances.

At Bankinter we have prepared a table where you can compare the benefits of our two main mortgages: variable-rate and fixed-rate.

We've broken down the main indicators that you should take into account when choosing a mortgage. They might look the same initially, but when it comes to repaying your mortgage you'll find certain differences: interest rates, advantages, terms, monthly instalment, conditions, linked products, etc.

## What to look for when comparing mortgages

Below we explain the main factors to bear in mind when comparing mortgages:

### Fees and commissions

When you take out a mortgage, you should bear in mind that you might have to pay a series of fees, such as the arrangement fee or a fee for early repayment or cancellation of the mortgage. It is essential to be clear about all these extra expenses to avoid surprises in the final budget for your home.

### Financiación

The percentage of financing you ask the bank for will vary according to your savings. Currently, when you apply for a mortgage you must have savings to cover at least 20% to 30% of the value of the property plus the expenses involved in the transaction. That said, banks lend a maximum of 80% of the purchase or appraisal value of the property if it is the primary residence, and somewhat less (65% to 70%) in the case of a second home.

### Interest rate

The mortgage interest rate is a percentage that is applied to the loan amount to determine the instalment you will have to pay each month to settle your debt. This interest rate may be fixed (the same percentage for the duration of your mortgage repayment period), variable (benchmark index + spread), or mixed (a mixture of both types).

## What is the mortgage arrangement fee See What is the mortgage arrangement fee

Offer valid until the total amount offered has been reached: 750 million euros for variable-rate mortgages and 25 million euros for fixed-rate and mixed mortgages.