First Home scheme at Alpha Bank: Monthly rate of 319 euro, 5.24% APR

Alpha Bank signed the framework convention with the National Fund of Loan Guarantee for SME (FNGCIM) for First Home scheme and will start offering loans under the program.

The bank will offer real estate investment loans under the cost conditions passed by Ministry of Public Finance for First Home scheme.

For loans in euro, the interest rate has been set at three-month EURIBOR plus 5 percentage points, and for loans in local currency, the interest rate has been set at three-month ROBOR plus 2.5 percentage points per year. Alpha Bank will charge neither disbursement nor administration fee.

For instance, in case the home value is 60,000 euros, the bank will offer 57,000 euros for 30 years, at an annual interest of 5.12% and monthly rate of approximately 310 euros. The annual percentage rate is 5.24%.

The minimum amount due to be paid in advance shall not be lower than 5% of the home value, namely 3,000 euros. In order to qualify for the loan, the minimum required income of a young couple is 620 euros.

“The only additional items to pay may be related to evaluation of the property, notary taxes, taxes on registration and guarantee, as well as FNGCIMM commissions. Under the conditions imposed by the program, clients must set up a collateral deposit equivalent to three interest rates”, Alpha Bank informs.

The bank also offers a home insurance policy at an annual cost of 0.12 percentage points, which can be paid on a quarterly or annual base.

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