News Details

The APS Green Home Loan launched

23/11/2021 09:00:00

With the launch of its Green Home Loan, APS Bank is bringing the best home loan offering to the market while making the strongest possible statement about its sustainability agenda.

The new home loan offers a discounted fixed interest rate of 1.00% p.a. for the first 5 years of the loan term to those buying a residential property with a low scoring Energy Performance Certificate (EPC) rating. Eligibility is for customers taking up a new home loan as well as those who wish to shift their current home loan to benefit from the discounted terms.

Liana DeBattista, Chief Strategy Officer at APS Bank said, “We are proud to be leading the way by offering such a Green Home Loan to the market. This product is very much in line with our commitment to support sustainable and environmentally conscious practices, which is at the core of the Bank’s mission.”

If you are interested in learning more about the APS Green Home Loan, contact us to set an appointment with our Customer Service Officials at any one of our branches across Malta and Gozo. Please bring the EPC of the property you wish to purchase with you to the appointment, to confirm that the certified rating is within the eligible range for the APS Green Home Loan.

 

A Representative Example of the APS Green Home Loan

On a fully utilised APS Green Home Loan of €150,000 at a fixed borrowing interest rate of 1.00% p.a. for the first 60 months and a variable borrowing interest rate of 2.90% p.a. for the remaining 420 months, the Annual Percentage Rate of Charge (APRC) will be 2.33%* p.a. The loan will be repayable in 60 equal monthly instalments of €380.27, followed by 420 equal monthly instalments of €512.78 over a term of 40 years.

The total sum payable throughout the term of the loan will be €238,333.80 (being capital of €150,000, interest of €88,183.80 and a booking fee of €150).

*The APRC calculation is based on the following assumptions: The consumer lending bank base rate (currently at 2.25%) remains unchanged during the variable borrowing interest period of the loan. No loan prepayments are done during the first 60 months and the loan is repaid as scheduled for the full duration of the facility. The facility is utilised in full within the first 3 months after being sanctioned. A processing fee (0.25% of the loan amount) will be collected at the time of issuing the sanction letter and will be refunded in full at the time of signing the contract. Bank legal fees (0.325% of the loan amount + VAT) will be waived for first time home buyers. The credit agreement is to remain valid for the period agreed between the Bank and the consumer, and that both parties will fulfil their obligations under the term and by the dates specified in the credit agreement. The APRC calculation is based on the total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit.

The worked example does not include the following items since such costs cannot be determined in advance: A life assurance policy covering the amount of the facility and a building replacement policy which are to be pledged in favour of the Bank and periodic updating of searches since such fees would incur Public Registry and Lands Registry fees. Life and property insurance are obligatory in order to obtain the loan. The loan is to be secured by a first ranking general and special hypothec and special privilege over the property being financed in Malta, a first ranking pledge over a life assurance policy covering the whole loan amount and a buildings insurance policy for the replacement cost of the property being end-financed. In the event of non-observance of the terms and conditions, including non-adherence to the loan repayments, the Bank may take steps to sell the property financed, following legal proceedings, and you may lose the property. The total sum payable throughout the term of the loan if the fixed rate was not available would be €255,428.40. The APS Green Home Loan’s fixed rate could result in savings of up to €16,944.60 in interest.

Approved and issued by APS Bank plc, APS Centre, Tower Street, B’Kara BKR 4012. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.

 

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APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The Bank is also registered as a Tied Insurance Intermediary under the Insurance Distribution Act 2018.