Published: 23.11.2017 Updated: 01.06.2023

Annual percentage rate of charge (APRC) for loans to resident households for house purchase in euro

Annual percentage rate of charge – an annualised interest rate that equalises the present values of prospective or actual commitments (loans, fee for considering loan applications, loan administration costs, commission fees, etc.) that result from the terms and conditions of the monetary financial institution-customer agreement.

Total costs of a loan

All costs, including interest, commission, fees and any other payments, which must be paid by the borrower in relation to the loan agreement and which are known to the creditor (except costs of a sworn notary). The total costs of a loan shall also include costs for additional services in relation to the loan agreement, including insurance premiums, if conclusion of an additional services contract is a mandatory precondition in order to receive the loan or in order to receive it on the terms and conditions offered.

Loan for house purchase

A loan granted to households for purchase of a house, a flat or a plot of land, for building or refurbishment, including those mortgage loans and loans for renovation of a house (a flat) that add value to the economic features of the house (flat).