What is it?

The Bank of Portugal (“Banco de Portugal”, or “BdP” in short) has established a standardised and common document model for all financial institutions and all mortgage loans, as well as consumer loans secured by mortgages or other real estate rights. With the delivery of this document, wich is mandatory, the BdP wants the pre-contractual information to be displayed in an uniform way, personalized, free, complete, clear, easy to interpret and easy to compare between different proposals.

The ESIS must be provided on two distinct occasions: when you simulate the loan, based on the information you provide to the institution, and when you announce the approval of the credit agreement, reflecting the terms of the loan actually approved by the institution.

 

Categories of contracts included:

  • Mortgage-backed housing loan contracts;
  • Housing loans contracts without mortgage collateral;
  • Other mortgage loans contracts;
  • Real estate finance lease contracts.

 

Mandatory Information in the ESIS

  • Annual Percentage Rate of Charge (APR);
  • Nominal annual rate (APR) applicable to the loan, according to the type of interest rate (fixed, variable or mixed) as agreed between the bank client and the credit institution and the respective breakdown, if applicable;
  • Other charges associated with the loan, such as commissions, expenses, required insurance, and other costs;
  • Amount of the loan and the total amount to be repaid (MTIC);
  • Periodicity and the amount of the installments;
  • Information on financial products and services hired as optional associated sellings, if applicable.

 

Source: Bank of Portugal

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