Buying a house is one of the most important economic transactions in a person’s life. Purchase proposal, preliminary contract, deposit, mortgage, deed … many operations, rules, checks, documents, commitments, types of purchase. From the very first step, it is advisable to have a notary by your side, so that he can protect you and advise you on how to carry out the entire process in total safety.
The interest rate is stated as a percentage and may be:
Interest on arrears, usually higher than the ordinary rate, is applied in case of non- or late payment of an instalment, for which the debtor may be declared in default and then obliged to pay late payment interest. It is applied to the unpaid instalments, consisting of principal and interest; loan agreements usually explicitly exclude so-called compound interest, i.e. the levying of interest on interest.
By law, the interest rate applied to loan agreements may not exceed percentage limits set by the law, so the borrower has the assurance that the rates charged are not usurious.