Magic House credit: real estate purchase, finishing works or repairs

1. Amount of loan  
(minimum / maximum)

maximum 70% of the project cost

2. Loan term (minimum/maximum)

- up to 15 years for real estate purchasing or construction

- up to 10 years for finishing works and repairs but nor more than client's retirement age

3. Interest rate paid by the client

4. Other payments not included in the interest rate (minimum/maximum)

• Single administrative charge::

a)   when the loan is provided: 1% of the amount of the approved loan;

b)  at the beginning of each following year: 0.5% of the loan balance (at 12 months from fee payment for the last period, starting with the second year)

• Fee for changing contractual terms: 0.5-2% from the loan balance (untill the changes a made);

• Tax collection - established in the agreement between the bank and collection company, calculated from the recovered amount of outstandings (commitment with immediate maturity).

5. Payment methods (annuities, instalments, integrally) and frequenc

6. Documents necessary to obtain a loan

1.   Application for loan request;

2.   Documents certifying the monthly income of the applicant and his/her spouse:

-                    receipt of salary,

-                    book / work contract,

-                    deposit contract,

-                    certificate of pensionable profits

-                    lease agreements,

3.   ID and the original cover sheet;

4.   Declaration on the income tax revenue in case the income  declaration to competent organs is required under tax legislation;

5.   Necessary documents for real estate mortgage:

·      Documents confirming the ownership of real estate (land, house, apartment);

·      Investment in the construction contract (as appropriate)

·      Certificate confirming full payment of the house cost (if appropriate)

·      Act of inspecting the degree of completion of the unfinished construction (if applicable)

·       Act of transmission-reception of the house (if applicable)

·      Building permit (if applicable)

·      Project documentation  / cost estimation of the construction / real estate repair (if applicable)

·      Contract on buying-selling or preliminary agreement

·      An excerpt from the OCT of real estate registry

·      State Tax Inspectorate certificate that confirms that the person has no debts to the budget

·      The evaluation of the property performed by companies approved by the Bank

7. Forms of loan insurances accepted by the Bank

1. Assurance:
a) real estate (house with land mandatory / flat / land);
b) unfinished house with land mandatory;
c) other real estate belonging to third parties intended for housing, industrial, commercial, etc..
2. Insurance package:
a) Ensuring in Bank’s benefit the mortgaged property at the  replacement property value;
b) life insurance on behalf of the Bank by or the loss of working capacity.

8. The advanced repayment effects and penalties related to the loan contract

Commission for arranging advanced loan repayment:
a). First year: 1% of the amount of advanced payment (until the advanced payment of the credit)
b). Next years: 0,5% of the amount of advanced payment (until the advanced payment of the credit)
Penalty:
a). Increased interest of an outstanding loan according to the terms of the contract (plus 5 percentage points of the interest applied to the use of credit), applied to the unpaid amount according to the contract (engagement with immediate maturity)
b). Penalty for an outstanding interest: 0,1% for each day of delay applied to the balance of the outstanding interest (engagement with immediate maturity)