Disclosure of APR on Financing and Saving
The Annual Percentage Rate (APR):
It is the discount rate at which the present value of all payments and installments that are due from the Borrower, representing the Total Amount Payable by the Borrower, equals the present value of all payments of the Amount of Financing available to the Borrower on the date on which the Financing amount or the first payment thereof is available to the Borrower. This is defined as per Article 81 of Implementing Regulations of the Finance Companies Control Law. In simple terms, APR is computed by adding all the upfront fees, charges and commissions charged from the customers and calculated on an annualized basis. The APR must be calculated and expressed in percentage points with a minimum of two basis points, rounding half basis points to the nearest full basis points.
|Property Value||Loan to Value Ratio||Fixed or Variable Rate **||APR*||Maturity in Years||Payment Type ***||Monthly Repayment Amount||Early Payment Charges|
|1000000||90%||Fixed||8.72%||30 years||Principle and Interest / profit||6,812.50||Profit of future 3 installments|
*APR may differ depending on the amount and the maturity period different from above and subject to credit scoring of each customer.
Loan/Finance Amount :
The amount of, on balance sheet loan granted to the customer.
Maturity In Years:
The contractual maturity of the on-balance sheet Loans/ Financing Products given to the customer. This is the final payment date of a Loan/Finance products at which point the principal (and all remaining interest/profit) is due to be paid.
Monthly Payment Amount:
Installment amount the customer is obliged to pay to the bank or finance company each month until the debt is fully repaid.
Property Market Value
Price negotiated between a willing buyer and a willing seller in an arm’s length transaction after fulfilling valuation criteria set by the banks . The value may not be the current listing price or the amount of the most recent offer on the property.
Loan to Value Ratio
Ratio of a loan provided by the Bank or Finance Company to the value of property purchased and determined as property market value .
Interest only payment or , both principle and interest payment or else.
Early Payment Charge
A fee customer will be required to pay to a lender if the customer pays off a mortgage early and before the scheduled maturity term of the credit facility , also sometimes referred to as a Redemption Penalty.