When signing a variable rate mortgage, it is crucial that future owners receive all the necessary documents from the bank to ensure a transparent and safe transaction. A mortgage is one of the most important financial commitments in a person's life, and in the case of a variable rate mortgage, there are several additional factors to consider. Here we tell you what are the essential documents that the bank must give you during the signing.

1. Mortgage contract

The most relevant document is, without a doubt, the mortgage contract. This establishes all the terms and conditions of the loan, including the loan amount, the repayment period, the interest rate (in this case, variable), the commissions, and the conditions for changing to a fixed rate or canceling the mortgage. It is essential to read it carefully, since this document regulates the relationship between the borrower and the bank.

2. Information brochure (FEIN)

The Standardized Information Form (FEIN) is one of the key documents that the bank must provide before signing. This document clearly and transparently details all the important information about the mortgage. Here you can see the initial interest rate, the frequency of variable interest rate revisions, and the possible fluctuations that your monthly payment may experience over time.

3. Standardized Warning Sheet (FiAE)

As it is a variable mortgage, this document is especially important, since the Standardized Warning Sheet (FiAE) details the risks associated with the loan. One of the main risks in this type of mortgage is the variability of the payments, which can rise or fall depending on the fluctuations of the reference index (for example, the Euribor). This document must explain in a simple and clear way the possible economic impact that these changes may have over time.

4. Binding offer

The binding offer is another of the key documents that the bank must give you before signing the mortgage. This document details the final conditions of the mortgage that remain in place for a set period (usually 10 days), and is a guarantee for the borrower that there will be no unexpected changes to the conditions agreed upon until the contract is signed.

5. Amortization table

This document is essential to understand how your mortgage payments will be distributed. The amortization table shows the breakdown of each instalment, that is, how much money will go to amortizing the capital and how much will go to cover the interest. In the case of a variable mortgage, this table can be more complex, since the instalments may vary depending on the evolution of the interest rate, but the bank must provide an estimate based on current conditions.

6. Simulation of future scenarios

In a variable mortgage, fluctuations in interest rates can significantly affect the instalments. Therefore, the bank must provide you with a simulation of future scenarios, which shows how your monthly instalment would change depending on possible increases or decreases in the interest rate. This document is useful for assessing risks and planning for the long term.

7. Life and home insurance

Although it is not mandatory in all cases, many financial institutions may require the contracting of life and home insurance linked to the mortgage. If the bank offers you these policies, they must provide you with the corresponding documents detailing the coverage, the premiums to be paid and the conditions of the insurance.

8. Appraisal certificate

The appraisal certificate is essential to determine the value of the property and the percentage that the bank is willing to finance. Although this document is usually provided before signing, it is important to review it to ensure that everything is in order and matches the value of the property in the current market.

9. Declaration of expenses and commissions

The bank is obliged to provide you with a detailed declaration of the expenses associated with the mortgage, such as notary, registry, agency, and any other commission that may be related to the signing. This ensures that the client knows exactly the total amount of the expenses to be faced when signing the mortgage.

10. Information about the floor clause (if applicable)

If the variable mortgage includes a floor clause, the bank is obliged to inform you clearly about its existence and how it will affect the evolution of your payments. The floor clause establishes a minimum interest rate, even if the reference rate falls beyond that threshold.

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Before signing a variable mortgage, make sure you receive all these documents and review them in detail. Do not hesitate to consult a financial advisor or lawyer if you have any doubts. At the end of the day, knowledge and transparency are the key.

Remember that at our real estate agency, we will accompany you throughout the entire process of buying your home, and we will advise you so that you can get the best mortgage conditions. We are here to help you every step of the way!