The annual percentage rate (APR) expresses the ratio of all loan-related costs.

The calculation includes the loan amount, origination fee, interest rate and other costs such as property insurance, land register fee, property appraisal fee, and similar fees.

In addition to the interest rate, the origination fee, appraisal, application for the registration of lien, property insurance and other loan-related fees are included.

The interest rate is one of the values that are part of the APR calculation and represents a percentage interpretation of the price for the loan amount.

For example: The interest rate determines the amount of interest included in the monthly installment and represents a cost for the borrower. The interest cost along with additional costs is recalculated into the APR percentage to enable a comparison of the total loan-related costs with various loan structures. For example, if you compare a loan with an interest rate of 1.35% and APR of 2.10% and a loan with an interest rate of 1.55% and APR of 1.85%, you can see that you will actually pay less for the loan with the APR of 1.85% even if it has a higher interest rate. With the first loan you will pay less in interest but the other costs, such as insurance, origination fee, etc. are so high that the second loan with the APR of 1.85% is better for you even with the higher interest rate.

If the subject of the security is an apartment or a family house, it is necessary to take out real estate insurance (does not apply to land). Clients can take out real estate insurance through DIALOG Live or at a Tatra banka branch (thus saving time), or at an insurance company of their choice.

The mortgage loan cost includes several items.

The first one is a property appraisal or an expert appraisal fee.

Clients may arrange for the appraisal by themselves or have the flat appraised using Tatra banka services (the current property appraisal fee via the bank is €150.)

If you have the property appraised by an external expert the fee depends on the type of the property pledged (this ranges from about €100 up to €250).

Other related fees:

• fee for the proposal to deposit a lien in the land register of €66,
• loan fee (currently €99),
• fee for property insurance or credit insurance.

Arranging your mortgage loan to buy a house or flat is individual and based on the documents you need to submit and the terms and conditions you have to meet.

However, the average duration for arranging a mortgage loan from preparation of the evaluation model, submitting all necessary documents, filing the application, signing of contracts and then disbursement of the loan usually takes about two weeks.

You have several options available if you want to make early repayment of the mortgage loan or part of it.

The first option is to make an extraordinary installment up to 20% of the loan amount free of charge, once a year, within the period of one month prior to the anniversary of signing the loan agreement.

Another option is to file an application for repayment of the whole loan or a part of it when the fixed interest rate period ends. In this case, the filing of the application as well as the loan repayment itself is free of charge (if the application is filed within the period specified in the notice sent to the client).

The client may also apply for early repayment of the loan or a part of it outside the aforementioned terms by paying a fee for the extraordinary installment, with a maximum up to 1% of the early repaid loan principal.

Currently, in terms of the legislative requirements and regulations, Tatra banka provides housing loans up to 90 % of the value of the pledged property.

If the client needs the full purchase price amount to acquire the property there are several options:

• pledge another property in addition to the acquired property (if available),
• supplement the financing of the purchase price difference with any purpose consumer loan with a favorable interest rate (for which the client has to standardly qualify),
• or use one’s own resources to supplement the purchase price difference.

The total mortgage loan amount depends on the income of the applicant and any co-debtors as well as the value of the pledged property. You can learn the exact amount you qualify for directly by phone via DIALOG Live or at any Tatra banka branch. A bank employee will also inform you about the documents needed and explain the whole loan procedure. For an indicative calculation, use the calculator on the Tatra banka website.

If your pledged property is a flat, you may ask Tatra banka to directly arrange for an appraisal. Such an appraisal is not a classic expert appraisal and serves exclusively for internal use by Tatra banka.

The appraisal is subject to a fee of €150 per flat. If your pledged property is a house or building land, you must directly ask an expert in the construction industry to prepare the expert appraisal.

As standard procedure, Tatra banka accepts an expert appraisal not older than 1 year; in the event of a refinancing loan we accept an expert appraisal up to 5 years old.

The basic documents you need to submit to the bank include:

• documents proving the purpose of the loan (purchase contract, building permit, itemized budget for reconstruction,...),
• documents proving an amount of income sufficient for the loan repayment after considering assumed monthly expenditures as well as other commitments of the applicants (we can verify the income amount at the bank directly if it is confirmed to the bank by the Social Insurance office; otherwise, proof of income must be submitted),
• documents about the property to be used as the loan security (in particular the expert appraisal, etc.),
• proof of identity of the persons entering the credit relationship.

The purposes for which a Mortgage Loan^TB may be taken include: acquisition, construction, modification, maintenance, loan repayment or a combination of the above. An American mortgage loan^TB may be granted for any purpose.

You can start repaying the mortgage loan upon the loan disbursement. This means that the terms and conditions set out in your property acquisition contract are decisive. If a part of the funds are to be paid before taking over the approved new construction and you will pay this portion from the mortgage loan, you would start repaying your loan already after disbursement of this sum.

When building a family house, Tatra bank is able to grant a loan right from the acquisition of the land.

Subsequently, construction of the family house may be financed in a form of a one-time disbursement (if other property is pledged) or by gradual disbursement in tranches, depending on how you will proceed with the construction of house. After completion of a certain amount of construction, Tatra banka will always refinance your used resources, enabling you to draw additional funds from your mortgage loan to continue construction.

For detailed information, contact a mortgage specialist by phone via DIALOG Live.

For the purposes of granting a mortgage loan, as standard procedure, we accept the following proof of income:

employee – income for the last 12 months is considered (including regular bonuses, 13th and 14th salary) or for a shorter period, however, not less than 6 months,

• employee abroad – for the period of not less than 6 months of employment,
• parental allowance,
• pension benefits – old-age, widow’s, invalidity and retirement,
• natural person – entrepreneur – for not less than one completed tax period,
• legal entity – minimum business duration of 24 months.

The minimum income amount of any person entering a credit relationship in the Slovak Republic is €350 per month.