Glossary

RATE

Interest calculation basis for the loan.

LOANS

Redeemable.
Loan whose capital is repaid over the whole term, term after term

In Fine.
Loan whose terms pay the interests, and whose capital is fully repaid in one time upon the term.

Variable or revisable.
Redeemable loan whose interest rate varies based on an index. ( generally the TIOP ). The amount of monthly instalments also varies

MORTGAGE

Mortgage taken out by lender and specified in the sale deed, allowing the bank to protect itself in the event of a dispute.

IPPD

Moneylender preferential right registration. Specific mortgage type without land publicity.

ADI

Disability and death insurance. Mandatory in France in an amount of 100% of the loan amount. Can be unlimited or broken down between borrowers.

TIOP

Interbanking rate offered in Paris. Can be considered as the 1-year Bank refinancing rate. Also referred to as PIBOR, it was replaced when the EURO arrived, by the EURIBORD.

CAP

Named after a cap in English. Designates the maximum rate of a variable rate loan.

IRA

Early repayment compensation. Usually 3 % of the capital outstanding. This clause of the loan agreement can be negotiated.

CRD

Capital outstanding of a loan.

COLLATERAL

Guarantee requested by lending organisation from an individual or outside organisation.

MUTUAL COLLATERAL

Company external to, or subsidiary of the lender, substituting to a mortgage guarantee. For instance, civil servants have guarantee companies for the financing of their main home.

EGR

Effective Global Rate. Contractual clause including :

• The nominal rate according to the calculation basis chosen ( proportional or arithmetical ).
• The impact of the insurance cost, in proportional incidence.
• The proportional incidence of fixed costs. ( mortgage and handling costs ).