APR for periodically fixed interest rate

The Annual Percentage Rate (APR) for a mortgage loan with a periodically fixed interest rate is 9.82% and we calculated it with the following assumptions: the total amount of the mortgage loan (excluding loan-financed costs) is 378,021.42 PLN, loan period 26 years, loan instalment 2,905.60 PLN, number of instalments 312, interest rate in the first 60-month period of the fixed rate 8.09%, and in the further loan period a variable interest rate of 9.39% (the sum of a fixed margin of 3.53% and the WIBOR 6M benchmark, which as of 30.08.2024 is 5.86%), loan secured by a mortgage on the newly acquired property with a value of 728,505.34 PLN. The 3.53% margin is available if you have a Millennium 360° account with us, to which your salary or other net income is credited every month, and a debit card to this account and you make non-cash transactions with the card in the amount of min. 500 PLN per month. The total cost of the consolidation loan is 648,443.50 PLN, including commission for granting the loan 0 PLN, interest 603,028.06 PLN, real estate insurance against fire and other fortuitous events 17,160 PLN from the offer available through us, life insurance 28,036.44 PLN from the offer available through us, PCC tax 19 PLN and the court fee for establishing a mortgage 200 PLN. Account maintenance cost is 0 PLN. The fee for service of the debit card or BLIK contactless payments is 0 PLN, if in the previous month you pay at least once with the card or by BLIK (if you are aged 18-26) or 5 times (if you are aged over 26). Total amount due 1,026,464.92 PLN. We made the calculation on 12.09.2024 on a representative example.

Detailed terms and conditions under which we grant mortgage loans are described in the Regulations on Lending to Individuals in Mortgage Banking at Bank Millennium S.A. Fees and commissions that we charge, as well as the interest rate are indicated in the Price List of Mortgage Loan / Home Equity Loan. You can consult these documents in our outlets and on the www.bankmillennium.pl website. Before we grant you a loan, we assess your credit capacity and creditworthiness each time. In justified cases, we may refuse to grant you credit. As collateral for the loan, you can provide real estate insurance or life insurance that is not available through us. You should conclude such an insurance contract with an insurer that is on the list published by the Polish Financial Supervision Authority. We can grant you a loan above 80% LTV (but not more than 90%) only with additional collateral in the form of high LTV risk insurance. LTV is the ratio of the total amount of the mortgage loan to the value of the property that is the subject of the collateral.

Information on risks

Periodically fixed interest rate

In the case of a mortgage loan with a periodically fixed interest rate, there is a risk that during the period of application of the fixed interest rate, your instalment may be higher than if it were calculated on the basis of the current WIBOR 6M reference rate, which is used in the calculation of the variable interest rate. After changing the interest rate on your loan to variable, an increase in the benchmark during the period of the fixed interest rate may cause a significant increase in the principal and interest instalment and thus the total cost of your loan. Furthermore, during the period when variable interest rate is applied there is the risk of increase of interest rate. Its amount depends on the WIBOR 6M benchmark. If the benchmark increases, the interest rate on your loan will be higher and the monthly principal and interest instalment will increase. Then the total cost of the loan will also increase. If the benchmark applicable in a given interest period is zero or negative, the interest rate on your loan in that interest period will be equal to the margin.

Variable interest rate

In the case of a mortgage with a variable interest rate, there is a risk of an increase in the interest rate. Its amount depends on the WIBOR 6M benchmark. If the benchmark increases, the interest rate on your loan will be higher and the monthly principal and interest instalment will increase. Then the total cost of the loan will also increase. If the benchmark applied in a given interest period is zero or negative, the interest rate on your loan in that interest period will be equal to the margin.