Banco Sabadell is marketing one of the most competitive home purchase loans at the moment: not only because of its interest rate, but because it is intended for first and second residences.
Specifically, Sabadell’s variable mortgage establishes a interest rate of 1.55% during the first year, although thereafter it becomes Euribor + 0.75% (4.75% APR), provided that the client applies the maximum bonuses; that is, if you domicile the payroll and take out three insurances: the home insurance, the life insurance and the payment protection insurance, which covers the payment of the monthly installments if the holder becomes unemployed.
In the case of not meeting any of these requirements, the interest rate rises by one point. Thus, it scales to 2.55% during the first 12 months and to Euribor + 1.75% thereafter (5.52% APR). In both options, the Catalan entity establishes an interest rate review period every six months.
One of the main advantages offered by this loan is that It is aimed at both the purchase of regular homes and second homes, although it establishes different financing limits. In the case of a first residence, the bank is willing to lend up to 80% of the lesser of these two amounts: the appraisal value of the property or its purchase price. For a second residence, the maximum is 70%.
Regarding commissions, only applies a penalty for early repaymentwhether partial or total, if the payment occurs during the first three years of the life of the mortgage, with a maximum of 0.25% of the amount disbursed in advance.
Another outstanding feature of this loan is that it is also available to non-residents; that is, both for Spaniards who live outside the country and for foreigners who want to buy a home in Spain. Profiles of clients in which the entity is specialized.
Lastly, Sabadell offers a contract term of up to 30 yearswith the condition that the borrowers are not older than 75 years when they finish paying it, and that the mortgage payment does not exceed 40% of their total monthly income.