Athens mortgage quote: comparing 3.84% fixed for three years

D

drawTheTrail

Homeowner
Established
The lower-looking headline rate is tempting, but comparing only rates seems unreliable once lender charges and loan-to-value pricing are applied. One Athens offer for a purchase of about €441,600 is fixed at 3.84% for three years.

If I expect to refinance after year three, should I compare payments, fees, principal remaining and any exit charge at that date? If refinancing is uncertain, would it be better to model the follow-on terms as well? I also want to know whether portability is genuinely available rather than planning on being able to move the mortgage later.
 
For a three-year fix, I’d compare all offers over the same 36 months. Add payments and upfront fees, then account for how much principal remains at month 36. APR is useful as a first filter, but it can hide the practical difference between offers if it assumes you keep the mortgage beyond the fixed period.

Are all quotes based on exactly the same loan amount and repayment term?
 
The missing number is the actual borrowing amount. €441,600 is the purchase price, but without the deposit and resulting loan-to-value, nobody can judge the tier or monthly payment. Also establish whether each arrangement fee is paid upfront or added to the loan. If financed, it affects both the balance and the interest calculation.
 
I wouldn’t make the 36-month cost the sole deciding factor. That approach quietly assumes refinancing will be available and worthwhile at the end of year three. Compare the offers that way, certainly, but also model the payment after the rate resets and ask how that reset is determined.

Portability deserves similar caution: being allowed to request a transfer is not necessarily the same as having an unconditional right to move the existing deal to another property.
 
A simple spreadsheet should settle most of this. Give each lender columns for loan amount, fixed monthly payment, upfront fees, fees added to the balance, total paid over 36 months, remaining balance, and cost of an early repayment at a few possible dates. Then add a second scenario where no refinance happens and the rate resets. That makes the trade-off visible without relying on one headline percentage.
 
Ben’s 36-month comparison and Tariq’s reset warning belong together. The cheapest fixed period may still be the wrong choice if the post-fix payment would strain monthly affordability.

I’d ask each lender for a payment breakdown based on the same deposit, term and fee treatment, plus written explanations of early repayment, portability and the rate after year three. Those details may be specific to the offer and Greek contract, so broad assumptions are risky.
 
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