Repaying your home loan early may seem out of reach – but it doesn’t have to be that way.
What if you could pay less interest on your home loan, whilst benefitting from a quicker repayment of the loan?
Through our unique APlus Home Loan solution, you will benefit from:
✓ Significant reduction in interest payments
✓ Quicker repayment of your home loan
✓ Easier, more effective control of your money
To make life even easier for you, the APlus Home Loan gives you the flexibility to still meet your financial needs. Whether that means paying your bills, treating yourself, or taking a holiday, the APlus Home Loan gives you the freedom to do just that!
Make your money work for you
Our APlus Home Loan provides you with a smarter way to bank. It will revolutionise the way you go about banking, enabling you to use your idle money to reduce interest payments.
Choosing a life insurance product is an important decision, but it can be complicated. As with any major purchase, it is important that you understand your family's needs and the options open to you.
APlus even offers additional savings
If you thought APlus couldn’t get any better, think again. Our APlus Home Loan provides a comprehensive list of additional benefits, helping you increase your savings and enjoy even more financial freedom.
These additional benefits include:
- No bank legal fees for first-time and second-time home buyers
- No bank architect fees
- Low interest rates
- No standing order charges for insurance premium payments
Optional 2-year moratorium on capital repayments
So, how does the APlus Home Loan work exactly?
The APlus Home Loan works by combining your home loan, overdraft, current, and savings accounts, and debit card into a single account. Any payments or money deposited into this account will automatically reduce the loan amount on which you are being charged the daily debit interest. This results in significant savings over the lifetime of your loan.
Your income and savings will be directly deposited into this account. For every Euro you deposit into your APlus account, you will automatically reduce how much you owe.
This works similarly to automatic prepayments, except you retain full control over the money in your APlus account. Therefore, you can still use the money deposited in this account to make payments or withdraw money from an ATM. The only requirement is that you make your original repayment schedule on time.
Essentially, you will be using any extra money in your APlus account to reduce the loan amount on which interest is charged. This is a smarter way for you to use your money, making the dream of paying back your loan early very achievable.
APlus enables you to make your idle money work for you.
A representative example of an APlus Home Loan
On a fully utilised APlus Home Loan of €200,000 at a variable interest rate of 3.5% per annum, the Annual Percentage Rate Charge (APRC)would equal 3.56% per annum. The loan would be repayable through 480 equal monthly instalments, i.e. a period of 40 years. Each monthly instalment would equal €780.62.
The total sum payable throughout the term of the loan will be €374,797.60. This sum constitutes of:
- €200,000 capital (the loan amount)
- €174,697 interest
- €100 processing fee
A processing fee equal to 0.25% of the loan amount minimum €100 will be collected at the time of issuing the sanction letter. Once the contract has been signed, this amount will then be partially refunded (the bank will only retain €100 as a processing fee).
Assumptions in the above calculation
Kindly take note of the following assumptions made with regards to the above calculation:
The APRC calculation is based on the following assumptions:
- The consumer lending bank base rate, which is currently 2.25%, remains unchanged throughout the period of the loan.
- The facility is fully utilised within the first 3 months of being sanctioned.
- Since APlus acts as a hybrid between a traditional home loan and an overdraft facility, the above calculation assumes that the facility is always in debit and follows the repayment schedule.
Additional information on APlus Home Loans
Kindly take note of the general conditions laid out below:
- Bank legal fees (0.325% of the loan amount + VAT) will be waived for first-time and second-time home buyers
- The consumer has the right to pay the loan in full or in part before the agreed termination
- In the eventuality that the loan is either fully repaid or reduced by an amount of 30% or more within the first 3 years, refunded/waived bank fees will become due
- The credit agreement is to remain valid for the period agreed between the Bank and the consumer, and both parties must agree to fulfil their obligations under the term and dates specified by the credit agreement
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Life and property insurance are obligatory in order to obtain the loan. The loan is to be secured by a first ranking general and special hypothec and special privilege over the property being financed in Malta, a first ranking pledge over a life assurance policy covering the whole loan amount and a buildings insurance policy for the replacement cost of the property being end-financed. In the event of non-observance of the terms and conditions, including non-adherence to the loan repayments, the bank may take steps to sell the property financed, following legal proceedings, and you may lose the property.
Approved and issued by APS Bank plc, APS Centre, Tower Street, B’Kara BKR 4012. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.