Open Mortgages

¹ Interest rates subject to the following discount conditions: (i) Primary home: a salary, pension or any other type of periodic state benefit must be paid directly into Openbank. Second home and/or self-employed: a salary, pension or any other type of periodic state benefit received by transfer must be set up with Openbank, or a deposit must be made from another bank into Openbank each month. For a single holder, the amount of any of the above items, both for a primary home and for a second home and/or self-employed, must be equal to or greater than €900 per month. If there are two or more holders, the minimum amount is €1,800 per month (ii) the property/properties subject to the mortgage must be insured with the Home Insurance marketed by Openbank, S.A., Linked Bancassurance Operator. (iii) The mortgage holder(s) must be covered by the life insurance sold with their mortgage through Open Bank, S.A. Linked Bancassurance Operator. This life insurance policy must be current, arranged by direct deposit through an Openbank account held by the mortgage holders, and must insure 100% of the capital financed by one or between all of the holders. 

When you do not meet any of the above discount conditions, the applicable interest rate will vary: 0.30% will be added to the discounted annual nominal interest if you do not meet discount condition (i); 0.10% will be added if you do not meet discount condition (ii); ‭‬0.10% will be added if you do not meet discount condition (iii); 0.50% will be added if you do not meet any of the above discount conditions. 

All holders must have their tax residence in Spain and be the holder of a current account in Openbank from which repayments of the mortgage loan will be made. No arrangement or maintenance fees. If you do not already have or take out the Home Insurance sold by Open Bank S.A., Linked Bancassurance Operator, the borrower will need to take out obligatory property damage insurance with the insurer of their choice. Mortgage subject to Openbank's approval.

The interest rate will be fixed during the initial period, both for the Open Variable-Rate Mortgage (first year) and the Mixed-Rate Mortgage (first 10 years). After the initial period, a resulting variable interest rate (12-month Euribor plus spread), with semi-annual review for the Open Variable-Rate Mortgage and annual review for the Open Mixed-Rate Mortgage, will be applied. For the Open Fixed-Rate Mortgage, a fixed interest rate will be applied for the entire term of the loan.

The interest rate to be applied will vary depending on the term you choose (Open Mixed-Rate and Fixed-Rate), and compliance with the terms and conditions.

Interest rates offered for mortgage loans intended for house purchases.

During the periods of application of the variable interest rate, the variable APR is provided for information purposes and is calculated on the theoretical assumption that the benchmark interest rate over the variable period, (in the variable mortgage) the 12-month Euribor, remains constant at the last known rate; to which the relevant spread is added, given that the variable interest rate for the variable period is higher than the initial fixed rate at the time this information is provided. This variable APR has been calculated on the assumption that the benchmarks do not vary; therefore, this variable APR will be updated in line with the interest rate revisions.

In the mixed-rate mortgage, the Variable APR is provided for information purposes and is calculated under the theoretical assumption that the initial benchmark interest rate remains constant, throughout the term of the mortgage, given that the rate resulting from the revision carried out in subsequent years (the 12-month Euribor rate published in September 2023 (4.073% plus a spread) is less than the initial interest rate. This Variable APR has been calculated under the assumption that the benchmark rates do not vary; therefore, this Variable APR will vary according to the revisions of the interest rate.

Notwithstanding the foregoing, you must be aware that when the fixed interest rate applicable during the initial interest period is less than the sum of the agreed spread and the benchmark index in effect on the date on which the mortgage is taken out, the APR will be calculated under the theoretical assumption that the initial reference rate remains constant, throughout the entire term of the mortgage, according to the 12-month Euribor published in September 2023 (4.073%).

² The APR and Variable APR have been calculated on the assumption that the mortgage agreement will be in effect for the agreed period of time, that there is no partial or full prepayment made, and that Openbank and the applicant will fulfil their obligations under the terms and conditions stipulated in the contract. Furthermore, the following has been considered in order to meet the discount conditions: (i) home insurance marketed by Openbank, S.A., Linked Bancassurance Operator, based on an estimated annual premium of €202.07 on a 100 m2 property located in Madrid, with a total value of €92,400 and a contents value of €23,100 (the premium for the first year was taken as a reference. Insurance premiums corresponding to the following annuities will be updated on an annual basis, as set forth in the individual terms of the applicable policy); (iii) life insurance sold through Open Bank, S.A., Linked Bancassurance Operator, for a 36-year-old holder, who has insured 100% of the loan amount, with an estimated annual premium of €250 (taking the first year premium as the benchmark. The insurance premiums will be updated annually in following years. This amount will vary depending on the age of the customer, the outstanding capital and the related coverage and services). - Home and life insurance are optional, but taking out these policies gives you more beneficial conditions.

The Variable APR indicated includes the valuation amount. The estimated charges for this item are €314.60 (including VAT, and any applicable IGIC - Impuesto General Indirecto Canario [General Indirect Tax in the Canary Islands] or IPSI - Impuesto sobre la Producción, los Servicios y la Importación [Tax on Production, Services and Imports in Ceuta and Melilla]).

The calculation of the APR and Variable APR without meeting discount conditions includes compulsory property damage insurance: €202.07/year. Openbank does not sell property damage insurance, so the amount indicated here is for guidance purposes only and has taken into account the premium resulting from calculating home insurance sold by Openbank (with greater cover than damage insurance) on a home located in Madrid of 100 m2, with a building value of €92,400 and a contents value of €23,100. This amount is an initial estimate that may vary depending on the cover and associated services that are actually taken out; therefore, the amount set out in your policy at the time it is taken out will apply. Likewise, you must bear in mind that the amount indicated in this section is an estimate for the first year's premium. Openbank cannot determine the premium for the remaining years, as it will vary according to the policy taken out and the technical conditions of the insurance company, without implying any link to Openbank.

The total amount payable in the representative examples includes: principal, interest and the home and life insurance premiums (the latter applies if discount conditions are met).

The total cost payable indicated in the representative examples includes all expenses, including interest, fees, taxes, and any other expenses that you have to pay in relation to the loan contract and that are known to Openbank.

Representative example for a fixed-rate mortgage of €150,000 over 15 years:

There would be 180 monthly payments, the first 3 of which would be at 2.95% NIR: monthly payment of €1,032.27. If you do not meet discount conditions, the following fixed rate would apply to the remaining 177 payments: 3.45% NIR (3.76% APR), with monthly payments of €1,068.08, the total cost of €45,493.20 and the total amount payable of €195,493.20. If you do meet discount conditions, there would be 180 payments at the fixed rate: 2.95% NIR (3.56% APR), with monthly payments of €1,032.27, the total cost of €42,904.10 and the total amount payable of €192,904.10. 

Representative example for a fixed-rate mortgage of €150,000 over 25 years:

There would be 300 monthly payments, the first 3 of which would be at 3.07% NIR: monthly payment of €716.79. If you do not meet discount conditions, the following fixed rate would apply to the remaining 297 payments: 3.57% NIR (3.86% APR), with monthly payments of €756.23, the total cost of €82,118.13 and the total amount payable of €232,118.13. If you do meet discount conditions, there would be 300 payments at the fixed rate: 3.07% NIR (3.63% APR), with monthly payments of €716,79, the total cost of €76,653.42 and the total amount payable of €226,653.42.

Representative example for a mixed-rate mortgage of €150,000 over 15 years:

If you do not meet discount conditions, there would be an initial fixed period with 3 monthly payments at 2.63% NIR of €1,009.39. From month 4 to 120, at 3.13% NIR, with a monthly payment of €1,044.72. After the initial fixed-rate period, the variable-rate period in line with the 12-month Euribor published in November 2023 (4.160%) + 1.05% NIR would apply. There would be 60 monthly payments of €1,099.26, a total cost of €44,561.18, and a total amount payable of €194,561.18. 3.64% APR.

If you meet discount conditions, the following fixed rate would apply to the first 120 payments: 2.63% NIR, with monthly payments of €1,009.39. After the initial fixed-rate period, the variable-rate period in line with the 12-month Euribor published in November 2023 (4.160%) + 0.55% NIR would apply. There would be 60 monthly payments of €1,062.33, the total cost of €41,962.25 and the total amount payable of €191,962.25. APR: 3.45%.

Representative example for a mixed-rate mortgage of €150,000 over 25 years:

If you do not meet discount conditions, there would be an initial fixed period with 3 monthly payments at 2.74% NIR of €691.20. From month 4 to 120, at 3.24% NIR, with a monthly payment of €729.84. After the initial fixed-rate period, the variable-rate period in line with the 12-month Euribor published in November 2023 (4.160%) + 1.05% NIR would apply. There would be 180 monthly payments of €833.35, a total cost of €92,834.56, and a total amount payable of €242,834.56. 4.14% APR.

If you meet discount conditions, the following fixed rate would apply to the first 120 payments: 2.74% NIR, with monthly payments of €691.20. After the initial fixed-rate period, the variable-rate period in line with the 12-month Euribor published in November 2023 (4.160%) + 0.55% NIR would apply. There would be 180 monthly payments of €790.70, the total cost of €86,886.35 and the total amount payable of €236,886.35. APR: 3.92%.

Representative example for a variable-rate mortgage of €150,000 over 25 years:

If the discount conditions are not met, there would be 2 monthly payments of €606.98. This will be followed by 9 monthly repayments of €642,77 from month 4 to month 12. After this initial period, the variable interest-rate period will commence according to the 12-month Euribor interest rate published in November 2023 (4.160%) + 1.10% NIR. There will be 288 monthly repayments of €889.29, the total cost of which will be €119,087.82. The total amount to pay will be €269,087.82. APR: 5.28%.

If the discount conditions are met, there would be 12 monthly repayments of €606.98. After this initial period, the variable interest-rate period will commence according to the 12-month Euribor interest rate published in November 2023 (4.160%) + 0.60% NIR. There will be 288 monthly repayments of €846.02, the total cost of which will be €112,553.87. The total amount to pay will be €262,553.87. APR: 5.04%.

The variable APR is provided for information purposes and is calculated on the theoretical assumption that the initial benchmark interest rate remains constant, according to the 12-month Euribor published in November 2023 (4.160%). This variable APR has been calculated on the assumption that the benchmarks do not vary; therefore, this variable APR will be updated in line with interest rate revisions on a semi-annual basis.

However, please note that after the first year it is a variable-rate loan and that the amount of each mortgage repayment will vary from the expiry date of the period in which the initial fixed interest rate is applied (12 months), and then on a six-monthly basis, at the time of each interest rate review. At the time of each review the applicable mortgage payment will be calculated based on the benchmark index, 12-month Euribor, or a substitute benchmark index, if applicable, from the second calendar month prior to the date of the interest rate review, plus the corresponding spread.

French repayment system, whereby the loan principal and interest are repaid through regular scheduled monthly instalments, i.e. of the same amount, provided that the interest rate applicable during the settlement period does not change and no early repayments are made. Since interest accrues on the outstanding principal amount, as time passes the amount of the instalment used to repay the principal increases, while the interest payment portion will decrease, as the outstanding principal is reduced. If the interest rate applicable to the loan increases due to an interest rate adjustment, then the amount of the instalment payable shall be increased. If, on the other hand, the interest rate which is applied falls, the amount of the instalment shall decrease.

The following mathematical formula is used to determine the amount of each monthly payment:

P= (i x c) x (1-(1+i)^-n)-1, where "p" is the monthly payment, "i" the annual nominal interest rate divided by 12, "c" the outstanding principal of the mortgage loan and “n” the number of outstanding months of the repayment period.

We use this formula to calculate interest on outstanding capital: I= (i x c), where "I" is the interest, "i" is the annual nominal interest rate divided by 12 and "c" is the outstanding principal of the mortgage loan.

The amount repaid by customers is the monthly payment minus interest.

³ Home Insurance provided by Zurich Insurance Plc, Sucursal en España, marketed by Open Bank, S.A., Linked Bancassurance Operaror, with Tax ID Number (NIF) A-28021079, through its distribution network. Open Bank, S.A., Linked Bancassurance Operator is registered in the D.G.S.F.P. [Directorate General for Insurance and Pension Funds] Registry, with nº OV-0081 and has valid agency contracts with Zurich Insurance Plc, Spain Branch; and Zurich Vida, Compañía de Seguros y Reaseguros, S.A. Civil liability and financial capacity covered pursuant to the applicable law.

⁴ Life insurance by Zurich Vida, Compañía de Seguros y Reaseguros, S.A., sold through Open Bank, S.A., Linked Bancassurance Operator, with NIF [Numero de Identificación Fiscal (Spanish Tax Identification Number)] A-28021079, through its distribution network. Openbank is registered in the D.G.S.F.P. Registry under No. OV-0081 and has valid agency contracts with Zurich Insurance plc, Sucursal en España, and Zurich Vida, Compañía de Seguros y Reaseguros, S.A. Civil liability and financial capacity are covered pursuant to the applicable law.

⁵ Pre-approval will be issued on the presumption of the accuracy of the information provided to date and will be subject to the subsequent performance of a comprehensive risk analysis by the Openbank risk department, once the necessary information and supporting documentation has been obtained. Accordingly, pre-approval is of an indicative nature and does not in any event constitute a Binding Offer nor a confirmation of granting the mortgage loan. Accordingly, Openbank shall not be liable for the final rejection of the mortgage loan or the terms of a subsequent Binding Offer other than those described depending on market conditions or having obtained additional information about their preferences and financial conditions; therefore, the applicant or any other recipient must take all necessary precautions before using the data contained in the pre-approval letter, which they use at their own risk.

⁶ The financial loss suffered by OPENBANK, if any, shall be calculated, in proportion with the reimbursed capital, by a negative difference between the outstanding capital at the time of the early redemption and the present market value of the loan.

The present market value will be calculated as the sum of the current value of the outstanding fees up to the next interest rate review and the current value of the outstanding capital at the time of the review had it not been cancelled early. The update interest rate will be the market rate that applies to the remaining time period until the next review. The applicable index for calculating market value will be the Interest Rate Swap (IRS) at 2, 3, 4, 5, 7, 10, 15, 20, and 30 year periods that will be published by the Bank of Spain and which a spread will be added. This spread will be fixed as the existing difference, at the time the transaction is signed, between the transaction interest rate and the IRS at the next closest installment to that time, until the next interest rate review date or until its maturity date.

The reference interest rate of the above that is closest to the outstanding period of the loan term from the early termination until the next interest rate review date or until its maturity date shall be applied.

The amount, if any, will be paid to Openbank when the reimbursement is formalised.

If you decide to pay the loan off early, please contact us in order to determine the exact level of compensation at that moment.