A mixed rate mortgage combines the characteristics of fixed and variable rates throughout the term of the loan.
This type of loan offers a combination of the advantages of both rates, providing initial stability and the possibility of benefiting from variable rates in the future.
The fixed rate period can be 3, 5 or 10 years and after this initial period you will benefit from a variable rate linked to Euribor until the end of the loan. 2
For those who value stability and want to avoid possible future increases in interest rates, BPI offers the possibility of choosing a fixed rate, guaranteeing that the instalment is constant throughout the loan and remains unchanged for the agreed period.
The fixed rate of the BPI Home Loan gives you security and predictability, always with the same instalment, without surprises or Euribor increases. 1
The variable rate is linked to a financial index - the Euribor. Choosing a variable rate means that the monthly instalments of your loan can also increase or decrease according to changes in the Euribor, impacting the monthly payments and the total cost of the loan.
The instalment is reviewed periodically according to the term of the Euribor index associated with your contract.4
To reduce the spread, it is necessary to purchase (or currently own) certain products.
The maximum value of the reduction is 0.75%, obtained by selecting optional associated sales products from the following:
- Taking out life or multi-risk insurance associated with Mortgage Loans and commercialised through BPI.
- BPI Package Account (e.g. Conta Valor BPI) with Automatic Salary Domiciliation
- Energy certificate of the property pledged as collateral for the Mortgage with an A+, A, or B rating.
- Allianz Portugal Health Insurance commercialised by BPI.
- Allianz Portugal Car Insurance commercialised by BPI.
- Securitas alarm commercialised by BPI.
The maximum amount you can request varies depending on the type of home you are buying.
The lowest value between:
- a percentage of the property's appraised value
- a percentage of the purchase price of the home