Flexi mortgage loan
By taking a mortgage loan, during the loan maturity customers are confronted with the periodic interest rate change (due to T-Bill interest changes) by affording different payment plan for each year. Sometimes these changes create an unpleasant financial situation in cases of yearly T-Bill interest rates increase and in order to help customers in this process, BKT offers an alternative mortgage product such as Flexi Term Mortgage.
This kind of product gives customers the possibility to settle the monthly instalment in the first year and keep it unchangeable during the loan maturity. Depending on the T-Bill interest rate volatility the loan maturity can change yearly, so that customer’s instalments may stay the same.
Example 1: Increase in the 1 Y T- Bill by 0.5%
Standard retail customers T-Bill+2.2%
| Interest Rate | Loan Amount/ Outstanding | Monthly Instalment | Maturity (months) | |
|---|---|---|---|---|
|
1st year |
4.35% |
ALL 5,000,000 |
ALL 44,631 |
144 |
|
2nd year |
4.85% |
ALL 4,675,508 |
ALL 44,511 |
149* |
*In order to keep the same monthly instalment, the maturity of the loan will be increased up to 149 months from the disbursement date. Instalment may slightly differ due to new maturity, but it will be quite limited.
** If T-Bill rates drastically increase, the bank will extend the maturity up to maximum term to offer minimum instalment to protect customer, but above the maximum maturity, instalment amount may increase.
Example 2: Decrease in the 1 Y T- Bill by 0.5%
Standard retail customers T-Bill+2.2%
| Interest Rate | Loan Amount/ Outstanding | Monthly Instalment | Maturity (months) | |
|---|---|---|---|---|
|
1st year |
4.35% |
ALL 5,000,000 |
ALL 44,631 |
144 |
|
2nd year |
3.85% |
ALL 4,675,508 |
ALL 44,597 |
140* |
*In order to keep the same monthly instalment, the maturity of the loan will be decreased up to 140 months from the disbursement date.
| Interest Rates for Home/ House Construction Loan in lekë Currency | Affluent customers : | |
| 1Y T-Bill + 1.3 % (changing each 12 months not less than 2.8 %) | ||
| Salary paid customers: | ||
| 1Y T-Bill + 1.5 % (changing each 12 months not less than 3 %) | ||
| Salary paid customers from any bank: | ||
| 1Y T-Bill + 1.7 % (changing each 12 months not less than 3.2 %) | ||
| Standard retail customers: | ||
| 1Y T-Bill + 2.2 % (changing each 12 months not less than 3.7 %) | ||
| Interest Rates for Home/ House Construction Loan in Euro Currency | For collateral same as credit subject: 1 Year Euribor +3.75% (changing each 12 months not less than 3.75%) |
|
| For collateral different from credit subject: 1 Year Euribor +4% (changing each 12 months not less than 4%) |
||
| Loan Maturity | ALL loans from 12 years at disbursement date, adjustable up to 25 years according to 1Y T-Bill volatility. EURO loans from 12 years at disbursement date, adjustable up to 20 years according to 1Y EURIBOR volatility |
|
| Maximum Loan Amount | 50,000,000 lekë/ 400,000 EUR | |
| Interest Rates for Home/ House Construction Loan in lekë Currency | Affluent customers : | |
| 1Y T-Bill + 1.3 % (changing each 12 months not less than 2.8 %) | ||
| Salary paid customers: | ||
| 1Y T-Bill + 1.5 % (changing each 12 months not less than 3 %) | ||
| Salary paid customers from any bank: | ||
| 1Y T-Bill + 1.7 % (changing each 12 months not less than 3.2 %) | ||
| Standard retail customers: | ||
| 1Y T-Bill + 2.2 % (changing each 12 months not less than 3.7 %) | ||
| Coverage Ratio | As guarantee the bank will ask mortgage of the property to be bought or another real estate can be used as collateral. In any case, the immediate liquidation value will be at least 120% of the accorded loan. |
*The requested loan can be granted in EURO currency only in cases when the value of investment is greater than or equal to 70,000 Euro.
* The customers may choose to have life insurance premium or to take a higher interest rate of the loan. In case he chooses the latter, options are:
If the customer is up to 45 years old, IR will be 0.5% higher
If the customer is over 45 years old, IR will be 1% higher
Please download the Pre-contractual information form