FIPRE . Said or read like that, that's what we're here for on a blog, it's not a term you hear every day like you hear about the Euribor or interest rates, although if you're thinking about taking out a mortgage, it may start to sound familiar to you.
Regarding the term itself, you should know that it is an acronym formed by the initials of Pre-contractual Information Sheet and that this, in turn, is a generic informative document that financial institutions are obliged to give you when you ask them for information about a mortgage loan.
Why do you need to know what it contains and how valid it is? We'll tell you.
What is FIPRE?
The Pre-contractual Information Sheet or FIPRE is the first document that the financial institution will give you when you apply for a mortgage.
This is an informative document with the basic details of the mortgage loan you are going to request. This information will already be adapted to your situation, although it can always be negotiated later.
The information appearing in the FIPRE is regulated by Order EHA/2899/2011, of October 28, on transparency and protection of banking services customers and includes 6 sections:
? Credit institution , where you have the basic data of the financial institution to which you are requesting the mortgage.
? Loan characteristics . This section includes the purpose of the mortgage, which may be for a primary residence or a second home, among others. It also reflects the maximum amount of the mortgage and the maximum term, as well as the amortization system and how the loan installments will be paid.
? Interest rate , which reflects the starting interest rate for the mortgage and whether it is a fixed or variable interest rate .
? Links and preparatory costs , which details the financial products that must be contracted, such as fire insurance. As with the new mortgage law the entity cannot force you to contract its products, you will also see the bonus you get with each one. That is, how much the interest rate is reduced if you add home insurance or life insurance to the mortgage they offer you. Remember that there are also mortgages without links , with which the conditions do not change whatever you contract.
? APR of the loan and total cost . Here you will see the annual equivalent rate or APR of the loan. This information will help you compare the conditions of the mortgage with other options on the market. If the mortgage is subsidized, you will have to indicate the APR with and without the subsidies. In addition, you will also be able to see the total cost of the mortgage or how much you will have paid at the end of the life of the loan.
? Early repayment , which indicates the conditions in case you want to pay off part or all of the mortgage early.
Is it the same as FIPER?
Don't be fooled by the name. FIPRE and FIPER are different things, like Fanta and Coca-Cola. They are both soft drinks, but they have nothing to do with each other.
You already know what FIPRE is. And what about FIPER? It is the Personalised Information Sheet, a document that has been replaced by the FEIN or European Standardised Information Sheet.
The FIPER was fully adapted to the client and summarised the final conditions of the mortgage, just as the FEIN does now, which is also binding.
Is this a firm and definitive offer for your mortgage?
No, the FIPRE is not a binding or definitive offer. It is a first general offer from the financial institution that will then be adapted to your risk profile as a client.
To help you understand it better, this is a first approach to the mortgage that summarizes its general conditions so that you can compare it with other loans.
If the mortgage application process goes ahead, you will receive the FEIN with an offer that is completely personalized for you and that will be binding on the financial institution.
How you can get the FIPRE
All financial institutions are required to give you the FIPRE if you ask for it when inquiring about their mortgages. In addition, it is completely free.
Think of it as a document that expands on what you see on their website, for example.
This document will help you compare mortgages and find out the approximate cost of the mortgage you are looking for. This is how you can find the right mortgage for you.