What they are and the various schemes

The access to and permanence in this loan scheme depend on the fulfilment of the following conditions by the interested parties:

• They have to be over the age of 18;

• They must have a degree of disability equal to or greater than 60%, as established by a medical certificate of multipurpose disability;

• The loan is not intended for the acquisition of property owned by ascendents or descendants of the person concerned;

• No member of the household has another loan on any subsidised loan scheme;

• The mortgage is established on the financed property, which cannot be sold for a minimum period of five years (except in case of unemployment, death of the holder, change in the size of the household or professional mobility).

Loans granted under this scheme may be used for the:

• Acquisition, extension, construction or execution of ordinary, extraordinary and improvement works in the permanent owner-occupied housing (including the acquisition of an individual garage or parking space in a collective garage);

• Acquisition of land and construction of property for permanent owner-occupied housing (including the construction of an individual garage);

• Execution of ordinary, extraordinary or improvement works in common parts of buildings designed to comply with the technical standards required by law to improve the accessibility of residential buildings by owners of autonomous units that constitute their permanent residence, and whose responsibility falls under the condominium owners.

The loans covered by this loan scheme benefit from an interest rate subsidy equal to the difference between (i) the reference rate for the calculation of subsidies, established by Ordinance No. 502/2003, of 26 June, or the interest rate contracted when it is lower than the reference rate for the calculation of subsidies; and (ii) 65% of the reference rate of the European Central Bank.

The maximum amount of the loan is EUR 190,000 (in 2015, updated annually on the basis of the consumer price index) and cannot exceed 90% of the appraisal value of the house or the cost of ordinary, extraordinary or improvement works (loan-to-value).

Loans covered by this scheme have a maximum maturity of 50 years.

It is not compulsory by law to take out life insurance but, as in the general home loan scheme, the credit institution may request the subscription of this type of insurance, under the principle of contractual freedom between the parties.

Bank customers may have more than one loan under this scheme in the following situations:

• Duly justified need for expansion or improvement of housing constructed or acquired with the first loan;

• Need to acquire or construct new housing because the housing constructed or acquired with the previous loan has become inadequate because of a change in the household or transfer of the work place.

In such cases, the total amount of the loans may not exceed the maximum amount applicable to the loans covered by this scheme, nor exceed 90% of the appraisal value of the house or the cost of ordinary, extraordinary or improvement works.

Should customers have acquired a degree of incapacity equal to or greater than 60% after entering into a home loan agreement for owner-occupied housing, they can switch their loan to the subsidised loan scheme for people with disabilities.

In order to migrate to this scheme, they must complete the other access conditions and submit an application to the credit institution to request such a change.

The change from the general scheme to the subsidised loan scheme for disabled persons is only allowed up to a maximum amount of EUR 190,000 (in 2015, updated annually on the basis of the consumer price index) and provided that the ratio of the outstanding capital and the value of the property does not exceed 90% (loan-to-value ratio).

In addition, the term of the loan covered by this scheme will take into account the number of years elapsed of the previous loan and the sum of the maturities of the two loans cannot exceed 50 years.