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Clients to have more information upon signing of home loan agreements

29.11.2008

From 15 January next year new guidelines of the Financial Supervision Authority will come into effect, specifying the information on the terms of a home loan agreement to be disclosed by a credit institution before entry into an agreement with the client and the method for its disclosure.

According to these advisory guidelines, merely the submission of a draft loan agreement to the client cannot, as a rule, be regarded as the provision of pre-contractual information for home loans, but a credit institution's compliance with the guidelines requires that the institution separately point out and clarify the material terms of the home loan agreement and the related obligations. The guidelines were adopted on 10 September 2008 and were planned to take effect on 1 March 2009. Due to the high interest of general public towards the correctness of provision of services by banks, the Financial Supervision Authority decided to effect the guidelines sooner than was originally planned.

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