Since 2017 the financial institutions granting mortgages are required to present the general conditions applicable to the mortgage loan. These conditions are described in a document referred as ESIS: European Standard Information sheet.
ESIS is also known as the “Mortgage” directive and aims to ensure that all consumers who contract
- Mortgage-secured housing credit;
- Housing loans without mortgage collateral;
- Other mortgage credit agreements;
- Real Estate Financial Leasing.
Have a cross-reference document to all financial institutions based in the European Union, which allows clearly to compare all the conditions and risks related to their future housing credit.
ESIS must be provided to the consumer at least at two different occasions:
- At the time of the loan simulation is made available;
- At the approval of the credit agreement.
What information should be contained in the ESIS?
ESIS should contain information on the main characteristics of the loan, allowing the banking client to know, namely:
- The annual rate of overall effective charges (APR);
- At nominal interest rate (NIR);
- Rate type (fixed, variable or mixed);
- The TRA;
- Charges associated with the loan, such as commissions, expenses, insurance required, taxes and other costs;
- The periodicity and the amount of benefits;
- Information on financial products and services contracted as an option associated sales, if applicable.
ESIS should also have other relevant elements such as situations likely to affect the cost of the loan (such as any promotional campaigns), the documentation to be made available by the banking client for the purpose of granting credit, the tables Reimbursement of the loan and early repayment commissions.