Bonification

Support granted for the State for acquisition of habitation, through the co participation in the interests.

Euribor (Euro Interbank Offer Rate)

Interbanc rate (average of rates offered practised between banks), that it results of a panel of 57 banks of countries of the European Union and others countries, chosen for being particularly active in the market of euro. The Euribor is calculated daily for the diverse stated standard periods of the financial market. The Euribor is the rate of reference (indexant) used in the calculation of the rates of interest for the habitation loans.

Bail

Personal guarantee where one third person (bailer) compromises before the creditor to pay the instalment, in case the debtor (warranted) does not pay in the due time.

Mortgage

Real estate security that confers to the creditor the right of being paid for the value of the debtor’s property, having preference to the any other creditors. This type of guarantee usually is demanded by the banks for the loans of long stated period (former loans to the habitation).

For guarantee of this loan, normally it can constitute specific mortgage. In alternative, and if to intend, can constitute generic mortgage to appeal later in simultaneous or to other loans for any purpose.

Generic Mortgage

It makes possible to reuse the sum already amortized of its Habitation Credit, for any situations that you may need, you can easily make a loan agreement without constituting new mortgage. It allows among others, to cover responsibilities that you assume with the Bank, e.g. in operations of credit cards, etc.

Indexation

Mechanism (convention) that it automatically associates the rate of the interest of a loan to a rate of reference assigned bi indexant.

Spread

Percentage margin, added by the bank to the reference interest rate (indexant).

TAE (Effective Annual Rate)

It is a interest rate that translates all the costs associates to a loan such as expenditures with evaluation, interests, insurance (life and multi-risks) and other incumbencies to pay to the bank by the customer.

TAEG (Global Effective Annual Rate of Incumbencies)

It is distinguished from the TAE by also including the interest rate associates to a loan and for if relating only to the credit to the consumption.

Indexed Rate

Ratio of the income of a family unit towards to the payment of a loan. Is measured in percentage. In Rule it must not exceed 50% of the monthly average income of the family unit.

Indexed Rate

Variable interest rate, composed by an indexant (reference rate) added of one spread (margin).

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NOTE: The information contained in this document is of general nature and does not apply to any entity or particular situation. In spite of trying to provide this informations the most accurate and current as possible, we cannot guarantee that such information is precise in the date where is readed or who will continue to be precise in the future. Nobody must not act in accordance with this information without nonsuitable professional councils that for each situation specifies. The detail contained in this summary is only a useful guide of general orientation.