Lenders should provide the borrower with sufficient and transparent information, including costs and risks associated with the loan, to enable the borrower to make an informed assessment of the suitability of the loan to their needs and financial circumstances.

There should be transparency in preparing and publishing all fees, charges and interest rates (or profits) including the method of calculating interest/profit.

Loan documentation should include, inter alia, the details of the property or the development, the borrower’s contribution, the amount of the loan, the repayment period, the periodic installment, the interest/profit rate, insurance requirement, mode and method of disbursement, the milestones required for progress payments in case of properties under construction with a clear pre-payment policy. For fees and charges it should be detailed in a separate schedule to be attached to the loan contract.

Borrowers should be provided with information setting out the total cost of the loan during its lifetime. The borrower must sign each page of the loan documentation and be given a copy signed by both the mortgage loan provider and the borrower.

The maximum charges to refinance with other banks or financial institutions or for early repayments are the actual cost (to break fixed loans) to the lender and/or fees and charges as set out in Regulations No. 29/2011. There should also be no impediment for borrowers to refinance with other institutions.

Financial institutions should also follow the transparency and disclosure requirements for real-estate lending in accordance with Regulations No. 29/2011.

Mortgage loan providers are not allowed to alter or vary terms and conditions of the loan or the facility during the tenor of the loan or the facility, unless agreed to in writing by the borrower. In case of changes to the commissions or fees, customers must be notified, at least, two months prior to implementation of such changes.