GUIDE TO HOUSING LOANS

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GUIDE TO

HOUSING LOANS

Instalments Conditions Loan duration Municipality aids Procedures Tax deductions Pre-sale agr eement Gover nment aids Guarantees Financing Inter est rates Insurances

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SUMMARY

APPENDIX

When and why apply

for a housing loan?

Different types of housing loans

:

a solution for each situation!

How much can you borrow?

What is your maximum budget?

How to finance your project?

Your financing planGuarantees

Costs of a housing

loan

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Costs of a housing

loan

Housing aids

Environmental issues and aids

Tak

e adv

antage of an interest

rate bonus with etikaT

ax matters

Insurances

Practical advice

Preparing your housing loan application

Your online loan application on

www

.bcee

.lu

Ten good reasons to choose

BCEE

Your personal financing plan

Interest rates and monthly

BCEE branch networkUseful addresses Code of conduct

instalments

20 21

I II III IV V

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Guarantees?

Variable interest rate?

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Are you planning to build, buy or renovate/refurbish a home?

Such a project is a considerable investment that requires careful

preparation and a trustworthy financial partner.

Depending on the nature of your project and on your personal

situation, various financing solutions are open to you.

Our advisors are at your disposal to develop, with you, a tailor-made

financing plan perfectly suited to your needs. Moreover they will guide

you through the available State aids and will provide you with practical

advice.

Do not hesitate to call on one of our advisors at any BCEE finance

centre or branch of your choice. A complete list of our branches can

be found in the appendix.

A housing loan:

easy with good

guidance...

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When and why

apply for

a housing loan?

Buying, building or even renovating/refurbishing a home requires substantial funds. As financing such a project on personal funds is rarely possible, a housing loan is the perfect solution.

A housing loan provides funds for:

• the acquiring of an existing house or apartment, • the building of a home,

• the renovating or refurbishing of a home, • the buying of building land.

There are several types of housing loans with a duration up to 30 years.

ADVICE

Before actively embarking on a real estate project, we recommend you to visit any BCEE branch to find out how much you may borrow. A clear vision of your budget and your financing possibilities will help avoid unnecessary steps and will save you time.

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Different types

of housing loans:

a solution for each situation!

Each real estate project is unique and requires individual processing. Our advisors will give you their attention to develop, with you, a tailor-made financing plan perfectly suited to your needs.

The main features of our different housing loans are listed below.

Standard fixed rate housing loan

• Fixed monthly instalments during the fixed interest rate period, • secures your budget against interest rate increases,

• fixed interest rate terms (until revision): 5, 10, 15 or 20 years,

• extraordinary repayment only possible upon expiry of the fixed interest rate period. Otherwise, if applicable, payment of an early repayment penalty taking into account the prevailing market bid rates for the remaining period of the loan,

• maximum loan term: 30 years.

Standard variable rate housing loan

• Monthly instalments adjusted according to base rate variations, • early repayment possible at any time and without penalty, • maximum loan term: 30 years.

Split rate housing loan

By financing your project with a loan where a portion is on a fixed rate basis and the other portion is on a variable rate basis, you may benefit from the advantages of both types of rates:

• flexibility of early repayment on the variable part, • monthly instalments on the fixed part will not change.

LOGI

FLEX

housing loan

• Loan that is split into two parts:

- standard part where monthly instalments include capital and interests,

- “in fine” part where monthly instalments are limited to the accrued interest whereas the borrowed capital becomes payable at latest upon maturity of the loan,

• reduced monthly instalments, • increased repayment flexibility, • maximum loan term: 25 years.

ADVICE

Depending on your project and in-dividual circumstances, a financing plan that combines several types of housing loans may turn out to be most suited. Speak to one of our advisors for a custom-made offer that meets your personal needs.

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EcoPrêt ENERGIE

• Intended to finance energy-efficient home improvement on existing homes, • a preferentiel interest rate,

• no mortgage registration,

• condition for approval: State aids must be granted for your project, • limited to an amount of EUR 50,000,

• maximum loan term: 10 years.

Bridge loan

• Intermediary financing solution pending the sale of a building or a certain inflow of funds (i.e. payment of life-insurance),

• interest payable in monthly instalments,

• capital can be reimbursed upon maturity of the bridge loan, • maximum loan duration, in principle: 24 months.

BHW – Housing savings scheme

If you have taken out a housing savings plan such as a BHW savings scheme, we can offer you intermediary financing until maturity of your housing savings plan (+/- 12 years). Thus the part of the housing loan financed this way is paid off by the allocated benefits of the housing savings plan. In the meantime you pay the interests to BCEE and the amount of savings to the housing savings institution BHW according to the contract. This method is particularly attractive from a tax perspective.

ADVICE

The association etika – Initiativ fir Alternativ Finanzéierung – a.s.b.l., in cooperation with BCEE offers an additional interest rate advantage to private individuals planning to finance a housing project that meets strict environmental requirements. For further information, visit www.bcee.lu and www.etika.lu or see page 14.

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How much

can you borrow?

What is your

maximum budget

?

Before actively embarking on a real estate project, find out how much you may borrow. This will help you to identify the real estate object that suits your budget.

The amount you may borrow will depend on many factors, such as your ability to repay the loan and your personal assets to be invested in the project. Our advisors will use these two elements to draw up a financing plan, allowing to determine the maximum amount you may borrow and thus, the maximum price of the real estate asset you may acquire.

EUR 400,000

EUR 200,000

EUR 600,000

ADVICE

The simulation tool available on www.bcee.lu will give you an estimate of your monthly instalments. However it will never completely take into consideration your particular situation. Each real estate project is unique and therefore requires individual handling.

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How to finance your project?

Your

financing plan

Our advisors will assist you in drawing up your personalised financing plan. In a simplified way, a financing plan may be summarized as follows:

1. Calculation of the total costs of the real estate project :

sum of all direct and indirect costs related to your real estate project. 2. Determination of your own financial input:

sum of all your personal means that can be invested in your project. 3. Determination of the amount to be borrowed:

by subtracting your personal means from the total costs, you get the amount you will have to borrow to finance your real estate project. 4. Determination of your ability to repay:

your ability to repay corresponds to the total of your regular income (salaries, family allowances...) minus the total of your regular expenses (monthly instalments for existing loans...). It is generally accepted that one third of the available income can be used for the repayment of a housing loan. However, this ratio may be exceeded as long as a balanced budget is maintained.

Don’t forget to set aside a part of your budget for maintenance expenses.

ADVICE

Complete the attached financing plan for a rough estimate of the financial aspect of your real estate project and to prepare your appointment with one of our advisors.

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Guarantees

For our housing loans, except for EcoPrêt ENERGIE loans, we require, in principle, a 1st rank mortgage on the real estate asset and an assignment of wages.

Additional guarantees to the mortgage that you or a third party may grant are: • a mortgage on another real estate asset,

• a bank guarantee,

• collateral (cash or securities),

• the assignment of the benefits of a housing savings scheme, • the assignment of the benefits of a life insurance policy, • a security from a third party,

• a State guarantee, • etc.

The amount you may borrow will depend on your own financial means, on your ability to repay and on the guarantees you will provide.

As a general rule, bank financing may amount to 85% of the guarantees on condition that your financing plan is insured and that your repayment ability has not been exceeded.

ADVICE

Draw up a list of possible guarantees as you prepare for your first appointment at our branch.

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Cost

of a housing loan

Each housing loan is subject to the payment of interest that varies according to the interest rate of the type of the housing loan chosen.

Our interest rate offers are competitive, making BCEE your privileged partner in home financing.

Besides interest rates, additional fees have to be taken into consideration: • loan application fee,

• deed fees.

The fees charged by BCEE include fees that are inherent to the mortgage contract drawn up by BCEE and to the mortgage registration with the Luxembourg mortgage office. Apart from the mortgage release fees charged at the final pay-off of the loan, no further loan application fees will be charged at your expense by BCEE.

However, for guarantees abroad, the related mortgage registration fees will have to be paid personally.

Please also note that BCEE will communicate the APR (Annual Percentage Rate of charge) on your housing loan in a clear and transparent manner. Our loan simulator on www.bcee.lu will give you an estimate of your monthly instalments. Please bear in mind that only a concrete offer will take into account your personal circumstances.

ADVICE

A comparison of the various housing loan offers is only objective if the Annual Percentage Rate is considered. Only the APR of charge takes into account all the additional fees that are charged by the financial institutions.

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Housing

aids

For acquiring, building or renovating/refurbishing a real estate asset, the Luxembourg government as well as several local authorities grant financial aids. The granting conditions and the amount of most of these aids (capital aids and interest subsidies) depend on your family and financial situation, your income and the living area of the real estate asset to finance. These aids are included in your own financial funds to invest in your project. For housing built after 10 September, 1944, the following limits are to be respected:

• 65m² living area of a house 140m² • 45m² living area of an apartment 120m²

These limits are to be increased by 20m² from the third dependent child and under certain conditions, by 20m² for any ascendent living in the same household that counts more than four members.

Here below you will find an outline of the main available aids as on 31 December, 2014. For a complete list and for details on the granting conditions of such State aids, we recommend that you get in touch with one of our advisors or the ”Service des Aides au Logement” (www.logement.lu). The legislation in force shall be applicable.

Capital aids

• Construction grants for the construction of a home or the first occupation of an existing home (max. EUR 9,700).

• Acquisition grants for the purchase of a home previously occupied (max. EUR 9,700).

• Improvement grants to finance part of the renovation of a house no less than 15 years old (max. EUR 10,000).

• Savings premiums which depend on related interests on your different savings accounts (max. EUR 5,000).

• Grants for architect fees (max. EUR 1,250).

• Grants for renovations to meet the needs of the physically disabled. • Grants in the framework of the dependency insurance to finance work that

will allow dependent individuals to remain in their homes.

Tax credits on notary deeds

• Resident individuals may be granted a tax credit to be claimed on the registration and transcription duties usually due when acquiring property or land intended for personal and principal use.

• For a couple acquiring property, the amount of the grant is doubled. • Tax credits are subject to conditions.

More information on www.aed.public.lu.

ADVICE

The personalised advice we offer in our branches includes all the information regarding State housing aids. If, prior to an appointment with one of our advisors you wish to obtain further information on the amounts and the conditions under which such aids are granted, please refer to:

”Service des Aides au Logement” 11, rue de Hollerich

L-1741 Luxembourg Tel. : (+352) 247-84860

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Super-reduced VAT rate

• When building or renovating your own home – under specific conditions and up to a specific amount – you may be eligible for a super-reduced VAT rate of 3%.

• When buying a home that is new or has not been lived in you may apply for a partial VAT restitution.

More information on www.aed.public.lu.

Interests aids

• Interest relief, which is related to an income condition, is calculated on the basis of the number of dependent children in the household and may result in a reduction of your monthly mortgage instalments.

• Interest subsidy, which depends on your family and financial situation, is also subject to living area and occupancy duration conditions. The subsidy represents one possibility to reduce your monthly mortgage instalments. • It must be noted that, both for interest subsidy as well as interest relief, the borrowed capital is taken into consideration up to a maximum amount of EUR 175,000; it may be increased by EUR 50,000 for all investment intended to promote and to rationally utilize energy, as well as to promote renewable energies.

State guarantees

• Should you not be able to provide sufficient personal guarantees, the State may vouch for your loan through a State guarantee, provided that you had been accumulating savings for at least 3 years beforehand.

Local authority aids

• Some local authorities offer acquisition and/or construction bonuses, as existing under the legislation of the "Fonction Publique", and subsidies for the energy rehabilitation of existing homes. For further information, consult your local authority.

ADVICE

If you are planning to buy an existing home where renovation and/or refurbishment work is required, speak to the current owner first to enquire whether he already benefitted from the super-reduced VAT rate on the real estate asset and to find out what the remaining limit is.

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Environmental issues

and aids

Building in an environmentally respectful way should not be limited to a fashion phenomenon. It also means acting as a responsible citizen, displaying respect towards future generations and reducing energy expenses on a daily basis.

The Luxembourg government has developed a range of financial grants to promote a rational use of energy and foster renewable energy.

BCEE is supporting this policy through its "EcoPrêt ENERGIE", product which offers preferential rates for the renovation of an existing home as long as these investments are also eligible for State aids.

Hereunder an overview of the works for which State grants may be applied: • construction of a passive house (class AA),

• improvement of thermal cladding on existing houses, • energy consulting services,

• condensing boilers and hydraulic balancing, • photovoltaic solar collectors,

• solar thermal installation, • heat pumps,

• geothermal heat exchange systems,

• central heating with wood pellets or log stoves,

• boilers on biomass fuel in connection with thermal solar collectors, • micro-cogeneration units based on renewable energy,

• installations and/or connections to a heat supply network fuelled by no less than 75% of renewable energy,

• installations of controlled ventilation systems with or without heat recovery. For further details on the application conditions and the amounts of such aids, as provided for by Law, please speak to our advisors at any of our branches or refer directly to the appropriate ministry:

Ministère du Développement durable et des Infrastructures

4, Place de l’Europe L-1499 Luxembourg Tel .: (+352) 247-86824

www.emwelt.lu/www.myenergy.lu

Please note that some local authorities also offer such aids.

ADVICE

Before embarking on an environ-mentally friendly construction or renovation project, find out whether there might be subsidies available to you.

We also recommend that you make an appointment with an indepen-dent energy advisor. Expert in the field, he will guide you through the various aids and will also offer an objective opinion on the usefulness and need for the work in conside-ration.

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Take advantage of

an interest rate

advantage

with etika

The association etika "Initiativ fir Alternativ Finanzéierung a.s.b.l.", in co- operation with BCEE, offers interest rate advantages on loans to private individuals seeking to finance the construction or insulation of their home in compliance with certain environmental standards. This interest rate advantage, granted within the framework of BCEE’s housing loan and "Eco-Prêt ENERGIE" offer, is dependent on the financial aids granted to private individuals in application of the Luxembourg ruling of 20 April, 2009 by the Ministry for Sustainable Development and Infrastructures.

Financing your project using this mechanism results in a double advantage: 1. financial aids from the "Ministère du Développement durable et des Infra-

structures" and

2. etika interest rate advantage.

The application conditions of the etika advantage are as follows:

• the interest rate advantage is applicable to an amount of above EUR 10,000 and below EUR 300,000;

• the maximum duration of the interest rate advantage is 10 years; • the offer for such an interest rate advantage is limited in time.

If you wish to apply for an etika advantage or obtain further information on this offer and its conditions, please contact:

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Tax matters

Besides direct financial aids, the legislator has implemented a number of tax incentives to encourage home ownership.

You will find below an overview of the tax measures as at 31 December, 2014. For further details on these indirect housing aids, we recommend that you contact our advisors in our branches or your tax office. The legislation in force shall be applicable.

Deductions of debit interest

You may deduct, in part or in full, the debit interest on your housing loan. The legislation provides debit interest deductions for the three following scenarios:

• construction or renovation/refurbishment of a home to be occupied by the owner,

•purchase of building land,

•acquisition of accommodation intended for rental.

The procedures for such debit interest deductions depend on the intended use of the real estate asset the loan has been applied for.

BHW Housing savings scheme

Payments made into a BHW Housing savings scheme may be deducted from your taxable income up to an annual amount of EUR 672 per member of the household.

Insurances

The single premium for a credit life insurance covering the remaining balance of a housing loan in the event of death is tax deductible. The deductible amount depends on your age and the composition of your household (between EUR 6,000 and EUR 31,200). The residual debt insurance yearly paid premiums can be fiscally deducted to the amount of EUR 672 per household member.

3%

4%

5%

ADVICE

Speak to your BCEE advisor about tax benefits on insurances linked to your home mortgage!

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Insurances

Thanks to our partner La Luxembourgeoise, BCEE can offer you all

insurances you may need for your real estate project. For your housing loan the following insurance coverages are recommended or even compulsory:

Credit life insurance

This insurance covers the outstanding balance of your debt and protects the family assets in case of death. The "invalidity" option allows compensation for any loss of income as a result of a partial or total permanent invalidity.

"Globale Habitation" Home Insurance

This multirisk home insurance covers your real estate asset against major risks including fire. Additional covers can be included in the contract to meet your requirements.

10-year liability insurance

The 10-year liability insurance covers, for 10 years, respectively 2 years after the construction of a residential house, deficiencies in construction or materials. APROBAT lalux assurances, as the single point of contact in the event of a deficiency, helps settling problems arising from conflicts of interest between the different building trades and the delays that may result from those.

Private third party liability insurance

This insurance protects you and your family against the financial consequences of causing loss or damage to a third party.

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Practical advice

You will find below a list of some questions relating to your real estate project. Our advisors remain at your disposal to discuss any further issues and to provide you with practical advice relevant to your personal project.

You are buying land:

• is the land in an authorised building area? • what is the buildable gross floor area?

• what type of construction is permitted on this land? • are there any compulsory construction deadlines? • are there any easements?

• are connections to public utilities available (power, gas, telephone, water, sewage)? If not, what are the initial connection charges?

• is the price in line with the market price in the area, town and neighbourhood?

• how does the geographic location of the land compare with your usual commutes (work place, school, public transport)?

• what local facilities are available (shops, schools...)? • what does the building permit cost?

• etc.

You are buying an existing apartment or house:

• does the building require any renovation in the near future (replace the heating system or the electric circuitry...)?

• what will the cost of this work be? • will this work require a building permit?

• what is the expert’s opinion concerning the price and condition of the asset?

• in case of an apartment:

• - what resolutions were passed at the last co-owners meeting? • - what are the shared expenses?

• - is any work on the building scheduled? If so, how will the costs be shared? • - what rights and obligations result from the internal rules?

• • etc

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You are buying on plan:

• into what energy category will the building fall?

• have you carefully read the specifications and are they comprehensive and complete?

• have you carefully looked at the construction plans and the contract? • are the various works and their costs detailed in the contract?

• does the property developer propose an additional ten-year guarantee? • is there a performance bond in case of failure on behalf of the seller? (only

in case of “vertical land survey”)

• when does the construction start and when does it finish? • etc.

You are building a house:

• would you rather manage the project yourself or have a turnkey project? • in case of the first, do you have the necessary time and know-how to

achieve a project of this scope?

• in case of the second, have you found a reliable architect to lead this project to completion?

• do the plans meet your expectations? • do you already have the required permits?

• have you had an energy performance certificate issued (“Energiepass”)? • which energy category will your house be classed into and what is the

estimate of energy costs? • etc.

Regardless of the nature of the project, before signing anything, go on site and ask yourself all the relevant questions. The local authority, the notary, the land survey office and the neighbourhood will provide you with answers to some of these questions.

Once you have found your asset, make sure the building/land is described as precisely as possible on the pre-sale agreement. This would include the land survey indication, correct address and, in case of an apartment, the accurate surface area.

A sale pre-contract is usually limited in time (usually 30 days), may contain opt-out clauses to be negotiated and also includes in case of a housing loan, a suspension clause providing for cancellation of the contract if the loan is not granted. If you plan to finance your acquisition with a loan, it is vital that the name of your bank figures in the pre-sale agreement.

Upon hand-over of your newly built home make sure a hand-over statement is issued and signed along with the seller indicating the possible defects and uncompleted works.

ADVICE

Before signing make repeated visits of the object, ideally at different times of the day and days of the week. It is better to take the time even if this means running the risk of missing a good deal, than to enter into a long-term commitment with an asset that does not really meet your expectations.

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Preparing your

housing loan

application

To enable us to make a firm offer in the shortest possible time, your application file should be as complete as possible. You will find below a list of the necessary documents for your housing loan application.

1) Purchase or renovation/refurbishment of a home:

• identity document and social security number of the applicant(s), • proof of income (payroll or salary record, pension...),

• pre-sale agreement, • photographs of the object,

• where appropriate, a quote for renovation/refurbishment costs, • energy performance certificate (“Energiepass”) of the asset in case

of purchase,

• annual income over 3 years prior to purchase (only in case of application for State aids).

2) Construction of a home:

• identity document and social security number of applicant(s), • proof of income (payroll or salary record, pension...), • notarised deed on land, or pre-draft thereof,

• plans, detailed quotes and where appropriate, specifications, • energy performance certificate (“Energiepass”),

• annual income of 3 years prior to acquisition (only in case of application for State aids).

ADVICE

Prepare your application file care-fully and include as far as possible all the required documents for your first appointment at a BCEE branch. The more complete your application is, the better our advice and the faster we can make a firm offer.

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Your online housing loan application

via

www.bcee.lu

or via the

Online

Branch

Other than the personal advice in one of our branches, you may submit your housing loan application via our website www.bcee.lu.

On our website, you will find all information about our housing loan offers alongside with our other products and services. You may also complete a contact form to arrange for an appointment with one of our advisors or refer to the list of branches.

If you do not want to visit your branch, simply use the services offered by our

Online Branch. You may contact our experienced advisors by: • phone at (+352) 4015-2200,

• e-mail at online@bcee.lu,

• Skype at the address "BCEE Agence Online".

ADVICE

If this is your first housing loan application, we recommend you make an appointment with one of our advisors in order to benefit from a personalised advice.

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Ten good reasons

to choose BCEE

A trustworthy partner

When entering a long-term commitment, such as a

housing loan, it is vital to rely on a financial partner

with solid foundations. BCEE is your obvious trusted

partner in this area.

Number 1

BCEE has always been the leader in the field of housing

loans in the Grand-Duchy of Luxembourg.

Experience

BCEE has been active in the field of housing loans for

over eighty years.

Particularly attractive conditions

BCEE applies very competitive interest rates and

handling fees on housing loans. They are clear,

trans-parent and there are no hidden costs!

A complete range and personalised offers

BCEE offers a complete range of housing loans.

We can, therefore, develop a personal financing plan

that is specifically suited to your individual situation

and your project.

ADVICE

A commitment as considerable as a real estate investment can only be made with a trusted financial partner. 1 2 3 4 5

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Comprehensive advice

Our advisors will be pleased to guide you through

available State aids and provide you with practical

advice.

Short decision-making time

Time is essential when buying a home. You can count

on our swift reaction.

Flexibility

When entering a long-term commitment there is

always a risk of contingencies.

Whatever unexpected events life brings we will

always try to find a solution with you.

A local service

BCEE has the largest branch network in the country,

including 14 finance centres.

Code of Conduct

BCEE adheres to the voluntary Code of Good Conduct

in matters of housing loan pre-contract information

and delivers personalised and detailed advice.

6

7

8

9

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BCEE

A TRUSTWORTHY

PARTNER FOR

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Appendix I : Your personal financing plan

Your personal financing plan relates the expenses connected with your investment to all of your resources. It gives you a first estimate of the amount you may be able to borrow and helps you in preparing your appointment with one of our advisors. All you have to do is, fill in the relevant data relating to your project and your personal situation.

Our advisors will guide you through your financing plan and give you a more specific estimate of your financing possibilities.

Costs related to your project Personal contribution

Acquisition or construction costs

. . . Own funds* . . . .

Cost of land

. . . Net revenue from sale of property * . . . .

Landscaping costs

. . . Housing savings scheme * . . . .

Possible renovation costs

. . . Donations to receive * . . . .

Acquisition deed and registration fees

. . . State aids and grants . . . .

Mortgage deed fees

. . . VAT discount . . . .

Architect’s fees

. . . .

Building permit fees

. . . .

Utilities connection fees

. . . .

Credit life insurance premium

. . . . Fitted kitchen . . . . Miscellaneous . . . . Total costs (T1)

. . . Total personal means (T2) . . . . T1-T2 = Amount to be loaned

. . . .

Monthly income Monthly expenses

+ Net monthly income

. . . - Existing loans . . . .

+ Monthly income from rent payments

. . . - Housing savings scheme . . . .

+ Monthly income from securities

. . . - Supports and other permanent expenses . . . .

+ Family allowances

. . . - Monthly instalments of new loan to be taken out . . . .

+ Other monthly income

. . . … . . . .

Total monthly income (T3)

. . . Total monthly expenses (T4) . . . .

Available income = T3-T4

. . . . Ratio Expenses / Income = T4 / T3

. . . .

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Appendix II : Interest rates and monthly instalments

Simulation of monthly housing loan payments

The table below helps you to simulate the monthly payments on your loan according to various interest rates. To calculate your theoretical instalments, divide the amount you want to borrow by 1,000 then multiply the result by the coefficient that corresponds to your combination of the loan duration and the interest rate.

1.75 % 2.00 % 2.25 % 2.50 % 2.75 % 3.00 % 3.25 % 3.50 % 3.75 % 4.00 % 4.25 % 4.50 % 10 years 9.10 9.21 9.33 9.44 9.56 9.68 9.79 9.91 10.03 10.15 10.27 10.39 15 years 6.33 6.45 6.57 6.68 6.80 6.93 7.05 7.17 7.30 7.42 7.55 7.67 20 years 4.95 5.07 5.19 5.32 5.44 5.57 5.69 5.82 5.96 6.09 6.22 6.35 25 years 4.13 4.25 4.38 4.50 4.63 4.76 4.90 5.03 5.17 5.31 5.45 5.59 30 years 3.58 3.71 3.84 3.97 4.10 4.24 4.38 4.52 4.66 4.81 4.95 5.10

Example : borrowed amount of EUR 400,000 for 25 years and a 3.00 % rate. Instalments : 400 x 4.76 = EUR 1,904

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Appendix III : BCEE branch network

BCEE’s network counts 14 finance centres and their affiliated branches.

Branch Address Phone

Finance Centre Auchan Rue Alphonse Weicker, 2 L-2721 Luxembourg 4015 9300

B.E.I. Bd. Konrad Adenauer, 100 L-2950 Luxembourg 4015 9330

Centre Européen Tour B - Av. J.F. Kennedy, 11 L-1855 Luxembourg 4015 9370

Cents Bd. Simonis, 2A L-2539 Luxembourg 4015 9380

Cour de Justice Bd. Charles Léon Hammes L-1715 Luxembourg 4015 9350 John F. Kennedy AvenueJ.-F. Kennedy, 39 L-1855 Luxembourg 4015 9580

Monnet Rue Alcide de Gasperi, 3 L-1615 Luxembourg 4015 9340

Niederanven Route de Trèves, 177 L-6940 Niederanven 4015 9390

Sandweiler Rue Principale, 41 L-5241 Sandweiler 4015 9400

Finance Centre Bascharage Av. de Luxembourg, 135 L-4940 Bascharage 4015 7630

Differdange Rue J.-F. Kennedy, 54 L-4599 Differdange 4015 7600

Niedercorn Rue des Ecoles, 4 L-4551 Differdange 4015 7610

Pétange Route de Luxembourg, 24 L-4760 Pétange 4015 7650

Rodange Route de Luxembourg, 1 L-4833 Rodange 4015 7670

Finance Centre Diekirch Rue de Stavelot, 4 L-9280 Diekirch 4015 7850

Larochette Place Bleech, 25 L-7610 Larochette 4015 7900

Vianden Grand-Rue, 18 L-9410 Vianden 4015 7880

Finance Centre Dudelange Pl. de l'Hôtel de Ville, 49-51 L-3590 Dudelange 4015 7550

Bettembourg Route d'Esch, 31 L-3230 Bettembourg 4015 7580

Kayl Grand-Rue, 31 L-3650 Kayl 4015 7700

Réiserbann Rue de Geespelt, 12 L-3378 Livange 4015 7680

Rumelange Place G.-D. Charlotte, 4 L-3710 Rumelange 4015 7710 Finance Centre Echternach Place du Marché, 20 L-6460 Echternach 4015 7220

Beaufort Rue Kummel, 1 L-6310 Beaufort 4015 7260

Junglinster Route de Luxembourg, 8 L-6130 Junglinster 4015 7250 Finance Centre Esch/Alzette Place de l'Hôtel de Ville, 3 L-4138 Esch/Alzette 4015 7300

Belval Plaza Avenue du Rock'n Roll, 7 L-4361 Esch/Alzette 4015 7470

Belvaux Route d'Esch, 33 L-4450 Belvaux 4015 7400

Esch/Lallange Rue de Luxembourg, 136 L-4221 Esch/Alzette 4015 7410

Esch/Nord Place Benelux, 5 L-4027 Esch/Alzette 4015 7420

Mondercange Rue d'Esch, 5 L-3920 Mondercange 4015 7500

Schifflange Avenue de la Libération, 3-5 L-3850 Schifflange 4015 7450 Finance Centre Ettelbruck Rue Abbé Henri Muller, 13 L-9065 Ettelbruck 4015 7940

Colmar-Berg Avenue Gordon Smith, 42 L-7740 Colmar-Berg 4015 7980 Redange/Attert Grand-Rue, 76 L-8510 Redange/Attert 4015 7950

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Finance Centre Gasperich Route d'Esch, 259 L-1471 Luxembourg 4015 9000

Bonnevoie Rue de Bonnevoie, 111 L-1261 Luxembourg 4015 9100

Cloche d'Or Rue Guillaume Kroll, 12 L-1882 Luxembourg 4015 9040 Hesperange Route de Thionville, 450 L-5886 Hesperange 4015 9080

Hollerich Route d'Esch, 125 L-1471 Luxembourg 4015 9050

Howald Route de Thionville, 201 L-5885 Howald 4015 9090

Finance Centre Grevenmacher Rue Mathias Schou, 1 L-6762 Grevenmacher 4015 7750

Mondorf-les-Bains Avenue François Clement, 62 L-5612 Mondorf-les-Bains 4015 7820

Remich Place du Marché, 2 L-5555 Remich 4015 7800

Wasserbillig Grand-Rue, 15 L-6630 Wasserbillig 4015 7770

Wormeldange Rue Principale, 67 L-5480 Wormeldange 4015 7780

Finance Centre Mamer Rue de la Libération, 3 L-8245 Mamer 4015 7050

Bertrange Rue de Leudelange, 5 L-8079 Bertrange 4015 7110

Belle Etoile Shopping Center la Belle Etoile L-8050 Bertrange 4015 9560

route d’Arlon

Bertrange-Concorde Route de Longwy, 80 L-8080 Bertrange 4015 7100

Capellen/NSPA Rue de la Gare, 11 L-8325 Capellen 4015 7080

Steinfort Route de Luxembourg, 2 L-8440 Steinfort 4015 7090

Strassen Route d'Arlon, 189 L-8011 Strassen 4015 7010

Finance Centre Niederwiltz Avenue de la Gare, 23-25 L-9540 Wiltz 4015 9500

Pommerloch Route de Bastogne, 19 L-9638 Pommerlach 4015 9530 Rombach-Martelange Route d'Arlon, 2 L-8832 Rombach-Martelange 4015 9510 Finance Centre Place de Metz Place de Metz, 2 L-2954 Luxembourg 4015 3902

Avenue du X Septembre Avenue du X Septembre, 14 L-2550 Luxembourg 4015 9150 Centre Rue Aldringen, 17 / Rue Beck, 7 L-1118 Luxembourg 4015 9190 Gare Coin Av. de la Liberté / Av. de la Gare L-1931 Luxembourg 4015 9200 Knuedler Coin Pl. Guillaume II / Rue de la Reine L-1648 Luxembourg 4015 9270 Limpertsberg Allée Scheffer, 33 L-2520 Luxembourg 4015 9170 Merl/Belair Bld. Pierre Dupong, 4-6 L-1430 Luxembourg 4015 9120 Finance Centre Walferdange Route de Diekirch, 13 L-7220 Walferdange 4015 9440

Bridel Route de Luxembourg, 78 L-8140 Bridel 4015 7030

Lintgen Route de Diekirch, 8A L-7440 Lintgen 4015 9460

Mersch Centre Marisca / Rue G.-D. Charlotte L-7560 Mersch 4015 9450 Finance Centre Weiswampach/

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Note IV : Useful addresses

Fonds du Logement

74, Mühlenweg L-2155 Luxembourg Tel.: (+352) 26 26 44 1 www.fondsdulogement.lu

Services des Aides au Logement

11, rue de Hollerich L-1741 Luxembourg Tel.: (+352) 247-84860 www.logement.lu

Société Nationale des Habitations

à Bon Marché

2b, rue Kalchesbruck L-1852 Luxembourg Tel.: (+352) 44 82 92 1 www.snhbm.lu

Ministère de la Culture –

Service des Sites et Monuments Nationaux

26, rue Münster L-2160 Luxembourg Tel.: (+352) 247-86652 www.ssmn.public.lu

Ministère du Développement durable

et des Infrastructures

4, Place de l’Europe L-1499 Luxembourg Tel.: (+352) 247-86824 www.emwelt.lu

Ministère de l’Intérieur

19, rue Beaumont L-1219 Luxembourg Tel.: (+352) 2478-4600 www.mi.public.lu

Ministère de l’Agriculture, de la Viticulture

et de la Protection des Consommateurs

1, rue de la Congrégation L-1352 Luxembourg Tel.: (+352) 247-82478 www.ma.public.lu

Administration de l’Enregistrement

et des Domaines

1-3, avenue Guillaume L-1651 Luxembourg Tel.: (+352) 44 905 1 www.aed.public.lu

Administration du Cadastre et de la Topographie

54, avenue Gaston Diderich L-1420 Luxembourg Tel.: (+352) 44 901 1 www.act.public.lu

etika – Initiativ fir Alternativ

Finanzéierung asbl

55, avenue de la Liberté L-1931 Luxembourg Tel./Fax : (+352) 29 83 53 contact@etika.lu www.etika.lu

Ordre des Architectes

et des Ingénieurs-Conseils

6, boulevard Grande-Duchesse Charlotte L-1330 Luxembourg

Tel.: (+352) 42 24 06 www.oai.lu

Chambre des Métiers

2, circuit de la Foire Internationale L-1347 Luxembourg

Tel.: (+352) 42 67 67 1 www.cdm.lu

Fédération des Artisans

2, circuit de la Foire Internationale L-1347 Luxembourg

Tel.: (+352) 42 45 11 1 www.fda.lu

My Energy

28, rue Michel Rodange L-2430 Luxembourg Tel.: (+352) 40 66 58 www.myenergy.lu

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EUROPEAN AGREEMENT ON A VOLUNTARY CODE OF CONDUCT

ON PRE-CONTRACTUAL INFORMATION FOR

HOME LOANS (HEREUNDER “AGREEMENT”)

This Agreement was negotiated and adopted by European consumer associations and European associations of credit institutions offering home loans. It provides backing for the Voluntary Code of Conduct (hereunder the “Code”) to be implemented by all institutions offering home loans to consumers.

The Agreement consists of two parts :

■ Part I : Terms of implementation and monitoring of the Code ; ■ Part II : Code stipulations in terms of information to be provided to

consumers, namely :

- general information on the offered home loans ;

- at the pre-contractual stage, personalised information in the form of the “European Standardised Information Sheet”. The aim of the Code is to ensure transparency and comparability of information.

PART I : TERMS OF IMPLEMENTATION

The Code shall be implemented by means of the following procedure :

1. European credit associations adhering to the Code shall make an official public statement announcing their commitment. 2. Each of these associations shall forward to its national member

institutions an official invitation to the following :

2.1. make an official public statement announcing their adherence to the Code ;

2.2. take all necessary measures to ensure effective application of the Code, which applies in particular to :

2.2.1. announce their adherence to the Code within six months from ratification of the Agreement ; 2.2.2. make their adherence known to the public ; 2.2.3. notify the central register (see point 7.2) of their

commitment to apply the Code, as well as the date selected for implementation.

Field of application of the Code

The Code covers consumer information for domestic and cross-border home loans.

Definition of a “Home Loan” for the purposes of the Code

A home loan is a credit to a consumer for the purchase or transformation of a private real estate asset he owns or aims to acquire. Such credit is guaranteed either by a mortgage on an immovable property or by a surety commonly used for this intent in a Member State.

Home loans covered by Directive 87/102/CEE on consumer credits do not come under the scope of the Code.

5. Consumers shall be informed of the existence of the Code and of the possibility to obtain a copy thereof by means of a specific note in the European Standardised Information Sheet.

6. European credit associations shall publish an annual progress report on the Code implementation.

7. The European Commission has stated that it shall :

7.1. monitor implementation of the Code and effectiveness thereof ; 7.2. ensure the setting-up of a central register listing institutions that

offer home loans and those among them where the Code is adopted ;

7.3. issue a recommendation that will include the Code as provided for by document COM (1999)232 of 11.05.1999 ;

7.4. assess the success of the Code on the basis of monitoring results, annual reports submitted by European credit associations

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PARTIE II : VOLUNTARY CODE OF CONDUCT ON PRE-CONTRACTUAL INFORMATION FOR HOME LOANS

This document is a voluntary Code of conduct (hereunder the “Code”), which deals with pre-contractual information to be provided to consumers regarding home loans. This Code is the core of the European Agreement on a Voluntary Code of Conduct on Pre-contractual Information for Home Loans (as defined in the Agreement), negotiated and approved by the European Consumer Associations and the European Credit Associations.

Institutions that adhere to the Code undertake to provide to the consumer, in accordance with the agreed terms of implementation and in the form described below :

1. General information to be given to consumers

Initial information about home loans should include or be accompanied with the following information, all presented in the same format:

A - Lender :

1. Identification and address of lender ;

2. Where appropriate, identification and address of intermediary. B - Home Loan :

1. Purposes for which the home loan may be used ; 2. Form of surety ;

3. Description of home loan types available with a brief description of the differences between fixed and variable rate products, including related implications for consumers ;

4. Interest rate types – fixed, variable, and combinations thereof ;

- General information about home loans available ;

- At the contractual stage, personalised information to be pre-sented in a “European Standardised Information Sheet”. The final decision to accept a credit offer from a lender rests with the consumer.

5. An indication of the cost of a typical home loan for the consumer ; 6. List of related cost elements (administrative costs, legal costs,

insur-ance costs, intermediaries costs...) ;

7. Options available for reimbursing the credit to the lender (including the number, frequency, amount of repayment instalments if any) ; 8. Possibility of early repayment (if so, conditions thereof) ;

9. Possible requirement to have real estate asset valuated by an expert (if so, which one) ;

10. General information on tax reliefs on home loans or other public subsidies prevailing ; alternatively indication of where to refer to for further information ;

11. Where relevant duration of the reflexion period ;

12. Confirmation that the institution adheres to the Code and indication that a copy of the Code is available in the institution.

2. Information to be presented on the “European Standardised Information Sheet”

The content of the European Standardised Information Sheet appears opposite :

Banque et Caisse d'Epargne de l'Etat, Luxembourg Etablissement Public Autonome Siège Central : 1, Place de Metz L-2954 Luxembourg

BIC : BCEELULL R.C.S. Luxembourg B 30775

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Item

Upfront text

1 Lender

2 Description of product

3 Nominal interest rate (indicate rate type and duration of fixed period)

4 Annual Percentage Rate of Charges (APR) based on national legislation or, where appropriate, effective rate

5 Amount of granted credit and currency

6 Duration of home loan

Description

“This document does not constitute a legally binding offer.

The figures are provided in good faith to give an accurate representation of the offer that the lender would make under current market conditions based on the information that has been provided.

The provision of this information does not oblige the lender to grant a credit.

This section is aimed at providing a concise but clear description of the product. It should be made clear:

- whether the surety consists of a mortgage on a real estate asset or another commonly used surety ; - whether this is an interest home loan (which implies only servicing the debt with a lump sum repayment on

due date) or a repayment home loan (which implies payment of interest and capital over the whole duration of the loan) ;

- whether the home loan conditions depend on the contribution of a certain amount of capital by the consumer (this capital may be expressed as a percentage of the real estate asset value) ;

- whether the home loan conditions depend on a third party guarantee.

This section aims at providing information on the key condition of the home loan, the interest rate. Where relevant it should include the variability mode (frequency of revisions, lock periods and related penalty clauses, collars and caps...).

In case of variable interest rate loan, the following is to be specified : - whether rates are tied to an index ; and

- if so, which index mechanism will be applied.

Where the national legislation does not provide for an APR, the equivalent effective rate should be used.

EUROPEAN STANDARDISED INFORMATION SHEET

The standardised information hereunder is an integral part of the European Agreement on a "Voluntary Code of Conduct on Pre-contractual Information for Home Loans", a copy of which can be obtained from your lender.

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9 For interest only home loans : - amount of each interest

repayment

- amount of each instal-ment to the repayinstal-ment vehicle

10 Where appropriate, additional non-recurring expenses

11 Additional recurring expenses (not included under point 8)

12 Early repayment

13 Internal appeal provision 14 Illustrative amortisation

table

15 Obligation to domicile one's bank account and salary with the lender

The lender is to provide a real or illustrative indication of the following :

a) amount of interest repayments according to the frequency thereof (see point 7) ;

b) amount of instalments towards the repayment vehicle according to the frequency thereof (see point 7). Where appropriate, a warning is to indicate that the repayment vehicle may not cover the amount borrowed. If the lender provides the repayment vehicle and includes it in his offer, a specific note is to indicate clearly whether it is subject or not to approval of such a repayment vehicle by the consumer.

A list of initial non-recurring expenses to be paid upon subscription to the home loan is to be provided to consumers.

Where such expenses depend directly or indirectly on the lender, an estimate is to be given.

Where appropriate, it should be indicated whether these expenses are to be paid irrespectively of the outcome of the home loan application.

These may include : - administrative expenses ; - legal fees ;

- property valuation fees.

There should be a clear indication where an offer is subject to the above services being provided to the consumer by the lender (subject to provision for such under the local legislation).

The list of additional recurring expenses is to include for instance :

- insurance against default on payment (in case of unemployment/death) ; - fire insurance ;

- insurance on real estate and movables.

There should be a clear indication where an offer is subject to the above services being provided to the con-sumer by the lender (subject to provision for such under the local legislation).

The lender is to indicate :

- the possibility and terms of early repayment ; - including an indication of any charges applicable.

If the exact amount of these fees cannot be determined at this early stage, the consumer is to be notified that he will be charged an amount sufficient to cover the lender's costs in unwinding the transaction.

Name, address and telephone number of the contact person.

The lender is to provide, for illustrative purposes, a summary amortisation table that would include at least the following :

- the amount of monthly or quarterly (where appropriate) instalments for the first year ; - followed by the annual amounts for the total duration of the loan.

The table is to indicate the following : - amount of capital reimbursed ; - amount of interest ;

- amount of outstanding capital ; - amount of each instalment ; - sum capital and interest.

It should be noted that such a table is for information purposes only. If the offered home loan is at a variable rate, a warning should be included.

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Figure

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References

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