CASHOUSE  Portugal
Head Office:
Avenida Manuel Júlio Carvalho e Costa, 44 A
Cascais
2750-423 Cascais
Phone: 214827430
Fax: 214827439
E-mail: cascais@cashouse.pt
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Glossary
 
 

• Starting a Credit Process
• Frequent Doubts and Questions
• Consolidated Credit
• Home Credit
 
 
STARTING A CREDIT PROCESS

What do I need to start a credit process?

You only have to contact a CASHOUSE Agent, who will help you to establish contact with our banking partners, and a meeting will be immediately scheduled. If you want to do it by yourself, you must approach a banking institution.

How can I know if my request was pre-approved?

After reception of the credit application and sending of the initial documentation, the banking institution will analyse it, and communicate the decision by letter.

The rate of some banks credit products provides you all the costs and charges, gives you the Pre-Approval, and informs you about the documents and steps necessary to perform the business.

How can I know if my request was approved?

After validation of the aspects which were the basis for the pre-approval, namely the property evaluation, the final approval which confirms the conditions of your credit will be sent to you.
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FREQUENT DOUBTS AND QUESTIONS

Amortization
Total or partial payment performed for the devolution of a loan.

Loan amortization
The gradual or total payment of a specific capital in debt.

Fiscal Benefits
All the exemptions, rate reductions, deductions on taxable subjects and assessment, accelerated depreciation and reincorporation, and other identical fiscal measures.

Legal Description
Document issued by the finance office, which confirms the property registration in the land registry, identifies its location, its composition, the area, the owner and the patrimonial value.

Capital
Nominal value of the mortgage loan. Total of the outstanding debt without interests.

Title Search
Document issued by the Land registry Office, which certifies all the property performed registrations: location, composition, owners, onus, transfers, etc..

Penalty Clause
Indemnity which the parties fix in an agreement. The penalty clause must follow the formalities required for the main obligation, and must be included in the register associated to the loan.

Land Registry Office
Public Body which belongs to Directorate General for Registries and Notary Affairs, where the essential information relative to properties (urban and rustic) is registered, namely its location and boundaries, its composition, and the identification of the successive owners.

Mutual Agreement
Agreement established between the credit institution (lender) and its client (borrower) relative to the financing, which defines the value, term, interest rates, and other elements. It can be concluded by means of public deed or private document.

Pre-contract Agreement
Agreement in which the parties bind to conclude, in the future, a purchase and sale agreement.

Municipal Tax
Altered by Decree-Law nr. 287/2003 to Municipal Property Tax.

Discharge
When the debt of a housing loan is satisfied, that agreement is dissolved through mortgage rescission. Document necessary in order to the client transmit the property entitlement.

Public Deed
Act (agreement) through which an asset of a owner is transferred to another, by means of written document signed by the parties in the presence of a notary or a representative. In accordance with the law, the purchase and sale of properties is always subject to public deed. The only exception is the contract by means of private agreement.

Euribor (Euro Interbank Offered Rate)
It Is an inter-bank rate (average of the interest rates at which banks offer to lend), which results from a panel of 57 banks from the European Union and third countries. Euribor is calculated on a daily basis for the several standard deadlines of the financial market. Euribor is the reference rate (indexed) used in the calculation of the bank loans interest rate.

Guarantor
The person who guarantees the loan payment upon default.

Personal Guarantee
A third party (guarantor) grants in presence of the creditor to pay the instalment, if the debtor (bailee) fails to perform the payment.

Purpose of the Credit
The destination of the loan. Usually it can be destined for the purchase, construction, repairs, transfer of other Credit Institution or for several non-specified purposes.

Autonomous Fraction
In a horizontal property, a building is divided in several parts (fractions), such as apartments, garages or shops.

Mortgage
A loan to finance the purchase of real estate, usually with specified payment periods and interest rates. The borrower (mortgagor) gives the lender (mortgagee) a lien on the property as collateral for the loan.

Municipal Property Tax
Annual municipal tax, which falls upon the taxable patrimonial value of the property. The permanent privately owned property can be exempt from this tax for a period of 3 to 6 years, depending on its taxable patrimonial value, and must be effectively destined to that purpose within a period of 6 months after the deed. For that purpose, the owner shall apply for that exemption in the finance office located in the property area, within a period of 60 days subsequent to that date.

Real Estate Transfer Tax
This tax falls upon the transfers, against payment, of the imposed property right, which is performed by means of a single payment, before the signature, and is relative to one of the following values: the one defined in the act or in the agreement, or the taxable patrimonial value.

Indexation
Mechanism (convention), which automatically associates the interest rate of a loan with the reference tax, referred to as indexing.

Housing License
Document issued by the Town-Hall, authorizing a house to be inhabited, after being verified that it gathers the conditions required for that purpose (security, salubrity, dimensions, etc.), and it is in accordance with the approved project. The notary demands the presentation of this document by the time of the formalization of the pre-contract agreement and deed. For this last purpose, when it has already been required, but not issued yet, what usually happens when the property has just been built (first transfer), is that it will be replaced by the building permit. Nevertheless, the transferee must prove that the license to use has already been requested.

Property Registration
Register performed in the Financial Services, which includes the composition and area of the building, its taxable patrimonial value, and the identity of the owners and usufructuaries, if there are any. A building is ?omitted? in the land registry, upon the absence of its cadastral register.

Notary Public
Public entity dependant of the Ministry of Justice, whose mission is to perform or attest certain acts and agreements, or verify their legal conditions, namely the purchase and sale of properties and the creation of mortgage, which are subject to public deed.

Onus
Any charge or limitation, which falls upon the property of an asset. For instance, a mortgage, a usufruct or a servitude.

Purchase Registration
Registration of the acquisition of determined property and respective transfer in the Land Registry Office.

Mortgage Registration
Registration in the Land Registry Office of the creation of a mortgage over a property. To obtain a housing loan, it is previously performed a provisional mortgage registration, which becomes definitive after the signature of the mutual and mortgage agreement. If in the mean time, the provisional registration is not converted in definitive registration, it expires by the end of six months.

Advance Payment
Value that buyer delivers to seller after taking the decision to purchase. It is the beginning of the property payment and works as a guarantee of the buyer?s interest.

Sisa Tax
Altered by Decree-Law nr. 287/2003 to Real Estate Transfer Tax.

Spread
Percentage margin added by the bank to the reference interest rate (indexing).

Annual Percentage Rate (APR)
Its is a rate that shows all the costs associated with a loan, such as evaluation expenses, interests, insurances (life and multi-risk insurances), and other charges that the client must pay to the bank.

Global Annual Percentage Rate of Charge
It is different from the APR because it includes the taxes associated with a loan, and because it only refers to the consumer credit.

Effort Rate
Ratio of a family income subject to the payment of a loan. It is measured in percentage. General rule, it must not exceed 50% of the family average monthly income.

Indexed Rate
Variable interest rate, constituted by a n indexing (reference rate) added to a spread (margin).

Taxable Patrimonial Value
Value attributed to the house or property, which is registered in the urban land register. It is registered in the Legal Description by the finance office, and it is used to estimate the Municipal Property Tax.

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CONSOLIDATED CREDIT

What is the product of the Consolidated Credit?

The Consolidation of Credits consists of joining all credits (Housing Loan, Car Loan, Personal Credit, Credit Cards, etc.) in a single Mortgage Loan, extending the term and reducing the rates, which allows you to pay one single monthly instalment inferior to the sum of each individual instalment.

Who can request a Consolidated Credit?

a) Natives or residents in national territory;
b) Aged between 18 and 65;
c) Employees, self-employed workers or independent entrepreneurs.

How do I know if my request was pre-approved?

After reception of the credit request and send of the initial documentation, it will be performed an analysis, and the decision is communicated by letter.

The rate of each bank credit products provides you all the costs and charges, gives you the Pre-Approval and informs you about the documents and steps necessary to perform the business.

Do I need to own a property in order to raise a loan?

Yes, as a rule it is necessary to own a property. However, you can give another person?s property as guarantee for payment, as long as both make part of the financing. The property to give as guarantee can only be a dwelling-house; for instance, an apartment or a house, destined for permanent or secondary residence.

Houses under construction or to be constructed are excluded, for instance: shops, industrial properties and offices.

What is the minimum and maximum term of the contract?

The consolidated credit has the minimum term of 3 years, and maximum term of 30 years (and the oldest proponent cannot be over 70 years old).

What is the necessary documentation to perform the credit proposals?

Personal Documents

Employees:

. Copy of the Identity Card and Taxpayer Card;
. IRS Declaration + Last liquidation statement;
. The last 3 salary statements;
. The last 3 bank statements;
. Properly filled and signed bank proposal.

Self-employed Workers:

. Copy of the Identity Card and Taxpayer Card;
. IRS declarations of the last two years + Liquidation statements;
. Corporate Income Tax declarations of the last two years + Annexes (in case of being partners of the company);
. The last 3 salary statements;
. Quarterly Bank Statements of a 1 year period or 4 monthly statements (for example: January, April, July, October);
. Properly filled and signed bank proposal.

Property Documents
- Title Search of the Land Registry Office;
- Legal Description or form 1;
- Location plan;

Insurances
- Life Insurance;
- Multi-risk insurance.
- Last receipt of each instalment in force or declaration issued by the credit institution, which confirms the capital in debt.

When is the warranty deed or mutual mortgage performed?

After the performance of the provisional registries, a meeting is scheduled. All interveners in the process are convoked by the bank for their granting. The deed date is communicated to the buyers, sellers, other credit institutions and guarantors.

The deed can be performed in any notary?s office or in the bank facilities. The bank delivers all the support to customers, putting at their disposal advising services performed by specialized law firms.
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HOME CREDIT

Who can request Home Credit?

a) Natives or residents in national territory;
b) Aged between 18 and 65;
c) Employees, self-employed workers or independent entrepreneurs.

What do I need to start a credit process?

You only have to contact us, contact directly a bank or a CASHOUSE Agent. Then a meeting will be scheduled with our commercial managers or PARTNERS.

How do I know if my request was pre-approved?

After reception of the credit request and send of the initial documentation, it will be performed an analysis, and the decision is communicated by letter.

The rate of each bank credit products provides you all the costs and charges; gives you the Pre-Approval; and informs you about the documents and steps necessary to perform the business.

What are the conditions to have access to a Home Credit?

This credit can be granted to people who seek a financing for the acquisition or performance of ordinary, extraordinary and improvement maintenance works, destined to permanent and/or secondary privately owned property.

Can I perform a loan for both acquisition and maintenance works at the same time?

A loan simultaneously for acquisition and maintenance works can be granted with the following requirements:

a) The maintenance works can only be initiated after the property purchase;
b) It is mandatory to perform a verification of the beginning of works after the property purchase and its conclusion, through the performance of inspections to the property.

Which spread will be ascribed?

The Home Credit spread will be determined by means of risk criteria of the bank, age of proponents, and purpose and value of the loan. The spread will be ascribed depending on these elements.

Do I have to liquidate some tax before the deed?

The customer will have to liquidate the Real Estate Transfer Tax through a single payment, before the deed, and this tax will fall upon the highest of the following values: the one defined in the act or agreement, or the taxable patrimonial value.

What is the documentation necessary for the execution of credit proposals:

Personal Documents

Employees:
. Copy of the Identity Card and Taxpayer Card;
. IRS Declaration + Last liquidation statement;
. The 3 last salary statements;
. The 3 last bank statements;
. Properly filled and signed bank proposal.

Self-employed Workers:
. Copy of the Identity Card and Taxpayer Card;
. IRS declaration of the last two years + Liquidation statement;
. Corporate Income Tax declarations of the last 2 years + Annexes (in case of being partners of the company);
. The 3 last salary statements;
. Quarterly Bank Statements of a 1 year period or 4 monthly statements (for example: January, April, July, October);
. Properly filled and signed bank proposal.

Property Documents
- Title search of the Land Registry Office;
- Legal Description or form 1;
- Location plan;

Insurances
- Life insurance;
- Multi-risk insurance;
- Purchase and Sale Agreement or Letter of Commitment;
- Housing Licence;
- Maintenance works;
- Estimate;

Is there any legal limitation upon transfer of credit contracted in the scope of the Home Credit?

The value of the loan must be equal to the capital in debt by the date of the transfer.

Can I request a second loan along with the Home credit transfer?

If the evaluation value of the property, by the date of the transfer, is superior to the value of the transferred credit, the customer can request a second loan.

How are the costs inherent to the transfer supported?

GE finances all transfer costs, issue of discharge of lien, commission on issue of debt statement, commissions on early rescission (as long as defined in contract), rates and fees in relation to registers and notaries.

When is the warranty deed or mutual mortgage performed?

The deed is scheduled after the performance of the provisional registries.

All interveners in the process are convoked by the bank for their granting. The deed date is communicated to buyers, sellers, other credit institutions and guarantors.

The deed can be performed in any notary?s office or in the bank facilities. The bank delivers all the support to customers, putting at their disposal advising services performed by specialized law firms.
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