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How does it work? Mortgage payments will always remain the same over the term of the loan1 regardless of variations in the Euribor. |
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Fixed interest rate Applicable rate meeting discount conditions1 Improve your interest rate when you arrange for your salary to be paid directly into your account and take out home insurance with us1. From 1.30% NIR1 (1.50% APR2 ). The applicable interest rate varies depending on the percentage of financing you apply for and the term you choose.
Applicable rate without meeting discount conditions1 From 1.70% NIR1 (1.70% APR2).
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Term for primary residence |
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No valuation fees3 or: • arrangement fees. • partial prepayment fees. • subrogation fees. • fees for amending conditions. Applicable fee for full prepayment: 2% of the remaining mortgage balance repaid early (full prepayment) during the first 10 years of the mortgage term. 1.5% when the full prepayment is made after the first 10 years. The amount charged for full prepayment will not exceed financial loss5.
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How does it work? Mortgage payments may go up or down every six months, depending on the variation of the Euribor. |
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Variable interest rate Applicable rate meeting discount conditions1 Improve your interest rate when you arrange for your salary to be paid directly into your account and take out home insurance with us1. Nominal interest rate from: Euribor + 0.79%1. 1.99% NIR for the first year Variable APR: 2.19%2 The applicable interest rate varies depending on the percentage of financing you apply for. Applicable rate without meeting discount conditions1 Nominal interest rate from: Euribor + 1.19%1. 2.39% NIR for the first year Variable APR: 2.41%2 |
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Term for primary residence |
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No valuation fees3 or: • arrangement fees. • partial prepayment fees. • subrogation fees. • fees for amending conditions. Applicable fee for full prepayment: 0.25% of the remaining mortgage balance repaid early (full prepayment) during the first three years of the mortgage term. The amount charged for full prepayment will not exceed financial loss5.
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How does it work? Mortgage payments will remain fixed for the first ten years of the term. From then on, they will be updated according to the current Euribor rate. |
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Mixed interest rate Applicable rate meeting discount conditions1 Improve your interest rate when you arrange for you salary to be paid directly into your account and take out home insurance with us1. From 1.45% NIR for the first 10 years and from Euribor + 0%1 for the remainder of the term. Variable APR: 1.65%2 The applicable interest rate varies depending on the term you choose. Applicable rate without meeting discount conditions1 From 1.85% NIR for the first 10 years and from Euribor + 0.40%1 for the remainder of the term. Variable APR: 1.85%2 |
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Term for primary residence |
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No valuation fees3 or: • arrangement fees. • partial prepayment fees. • subrogation fees. • fees for amending conditions. Applicable fee for full prepayment: 2% of the remaining mortgage balance repaid early (full prepayment) during the first 10 years of the term, or 0% when the full prepayment is made after the first 10 years. The amount charged for full prepayment will not exceed financial loss5.
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Applying for your mortgage is simple
Calculate your mortgage repayments
Without meeting discount conditions or meeting discount conditions to improve your interest rate, if you arrange for your salary to be paid directly into your account or take our home insurance with us
Find out instantly if it is pre-approved
Fast calculation. You will know right away if your mortgage has been pre-approved4 .
We can grant your mortgage!
We analyse your details and if everything is in order, we grant your mortgage.
You sign
You sign for the mortgage loan at a notary's office. It's now time to enjoy your new home!
Want to learn more about the Open Mortgage?
Who can apply for a mortgage?
Anyone who is over 18 years old and resident in Spain with a Current Account in Openbank. The sum of the applicant's age and the term of the mortgage must not exceed 75 years. At least one of the holders must prove fixed income from employment, self-employed or pension.
What happens with the fees and charges?
No matter which option you choose, Variable, Mixed or Fixed:
Openbank covers the valuation fees for your mortgage.
That's it. Forget about valuation and land registry report fees.
In order for us to pay the valuation and land registry verification fees, you must have requested them through our us and take out the mortgage loan with Openbank. In this case, Openbank will return the corresponding amount, after signing, when the mortgage file is settled.
Please note that these fees refer to the signing of the mortgage loan agreement and under no circumstances to the home purchase process.
No:
- arrangement fees.
- partial prepayment fees.
- subrogation fees.
- fees for amending conditions
Applicable fee for full prepayment:
- 0.25% of the remaining mortgage balance repaid early (full prepayment) during the first three years of the mortgage term, with a limit that will not exceed financial loss.
How does the Euribor affect my mortgage payment?
The interest rate of the Open Variable Mortgage will be reviewed every six months and the payments will be updated with the current Euribor rate plus the corresponding spread. Your mortgage payment can go up or down depending on the prevailing Euribor when the interest rate of your mortgage is reviewed.
How is the application process?
It's quick and simple. You can apply on the website by filling out your information and uploading documents, etc. You'll also be assisted by a personal advisor throughout the whole process, making sure everything runs smoothly.
How many holders can the mortgage have?
Up to two holders per mortgage.
What is the minimum and maximum amount you can apply for?
You can apply for up to 80% for a primary residence and 70% for a second residence. This percentage will be applied to the lowest of the following amounts: valuation price or purchase price.
Is it cumpulsory to take out Home Insurance through Openbank with my Open Mortgage?
Taking out Home Insurance with us is not cumpulsory, but if you arrange for your salary to be paid directly into your account and take out a Home Insurance marketed by Open Bank, S.A, Operador de Banca-Seguros Vinculado, making sure that all payments are up to date, you will pay less on your mortgage.
What is home insurance?
It is the insurance that covers the risks your home may suffer from, for example: secondary effects from electric short circuits, pipe breakages, miscellaneous failures, domestic accidents, accidents caused by weather, theft, etc. It also covers civil liability caused by damage or injuries to other people or their property, such as falling objects from windows or balconies, flooding on lower floors, etc.
Which insurer do you take out the Openbank Home Insurance with?
Coverage and guarantees for this insurance are insured by Zurich Insurance PLC, Spanish Branch, whilst Open Bank S.A, Operador de Banca-Seguros Vinculado, with NIF (Tax ID Number) A28021079, acts as an insurance mediator through its distribution network. It is registered in the Directorate General of Insurance and Pension Funds with No. OV-0081 and has current agency contracts with Zurich Insurance plc, Spanish Branch and Zurich Vida, Compañía de Seguros y Reaseguros, S.A.
What happens to my Discounted Open Mortgage if I cancel or do not renew my Openbank Home Insurance or cancel the direct deposit for my salary into Openbank?
The interest rate will vary. If you cancel the direct deposit for your salary, an additional margin of 0.30% is added to the discounted annual nominal interest rate; if you do not renew the Home Insurance marketed by Open Bank, S.A., Operador de Banca-Seguros Vinculado, or it is not up to date with payment, then 0.10% is added; and in the event you have not arranged for your salary to be paid directly into Openbank and have not taken out home insurance with us, 0.40% is added to the nominal interest. You can meet or fail to meet conditions throughout the term of the mortgage, and we will adapt the interest rate to what you decide at any time.
What is the difference between meeting or failing to meet discount conditions?
Meeting discount conditions improves your interest rate and helps you save on your monthly payment as you have set up a direct deposit for your salary or pension and you have insured your new house with our Home Insurance.
Failing to meet discount conditions means you do not need to set up a direct deposit for your salary or take out any insurance; however, in exchange, you will not be eligible for a discount on your mortgage. In other words, it is not cumpulsory to set up a direct deposit for your salary or take out the home insurance through us.
1 Interest rates subject to the following discount conditions: (i) a salary, pension or any other type of periodic benefit received by transfer as remuneration must be set up with Openbank. For a single holder, the amount of any of the above items 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. At least one of the mortgage holders must have proof of fixed income from work as an employee, self-employed person or from a pension (ii) the property/properties subject to the mortgage must be insured with the Home Insurance marketed by Openbank, S.A., Linked Bancassurance Operator.
If you do not meet any of the above discount conditions, the applicable interest rate that arises from failure to comply will vary and will be the result of an additional margin of 0.30% being added to the annual nominal interest if you do not meet the discount condition (i), 0.10% if you do not meet the discount condition (ii) and 0.40% if you do not meet either of the above conditions to be eligible for the discount.
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. 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 (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 percentage of financing you apply for (Open Fixed-Rate and Variable-Rate Mortgages), 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 application periods of the variable interest rate, the Variable APR is provided for information purposes and is calculated under the theoretical assumption that the initial reference interest rate remains constant, throughout the term of the mortgage, given that the rate resulting from the revision carried out in subsequent years (the 1-year Euribor published in September 2020 (-0.359% plus a spread) is less than the initial interest rate. This Variable APR has been calculated on 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 1-year Euribor published in September 2020 (-0.359%).
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 €153.79 on a 100 m2 property located in Madrid, with a total value of €87,800.00 and a contents value of €22,000.00 (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).
3Openbank will bear the valuation and land registry verification fees (land registry report) as long as they are requested through Openbank and the mortgage agreement is ultimately signed with the bank. These expenses will be paid by the customer in advance and will be refunded by Openbank, after signing, once the mortgage file settlement has been completed. The abovementioned expenses relate to the arrangement of the mortgage loan and under no circumstances to the home purchase transaction.
In addition, Openbank will issue a rebate of €230 for customers who provide a valid valuation by an appraisal firm accredited by the Bank of Spain, provided that the mortgage agreement with Openbank is signed before 31 December 2020, the valuation has not been requested through Openbank and the loan is ultimately signed with the bank. This rebate will be equivalent to the valuation fees as if it had been requested through Openbank (€230.00 excluding VAT) and will be made, after signing, when the mortgage file settlement has been completed.
4 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.
5 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 time.
