PowerSmart Home Mortgage0 "Floating Rate" & "Initial Fixed Rate" Product Summary
(As of September 6, 2006)
1. Application The following conditions must be met prior to applying for the Home Mortgage Loan:
0 %ÏBetween the ages of 20 and 65 at the time of borrowing, and younger than 80 on maturity date.000 %ÏMust qualify for group life insurance
0 %ÏAnnual income before tax for the previous fiscal year of 3 million yen or more 00 %ÏConsecutive employment record or business of 2 years or more
0 %ÏJapanese national or a foreign national residing in Japan with "Alien Registration Certificate"
0 %ÏSatisfy other qualifications and conditions specified by Shinsei Bank
0 ; Further, the Home Mortgage loan requires customers to open a PowerFlex savings account.
2. Loan Purpose The purpose of the loan is limited to obtaining a property for primary residence for the applicant and it will also be limited to the following purchases or refinance:
0 %ÏNew or secondhand property (detached house or apartment)
0 %ÏConstruction of a new detached house (lump sum disbursement at time of completion only)
0 %ÏLand purchase (construction and occupancy must be completed within one year)
0 %ÏRefinancing a mortgage (for purposes applicable to the above) from another financial institution
3. Loan Amount From 5 million yen to 100 million yen ( in units of 100,000 yen)
However, if the repayment amount is beyond the customer's ability to pay, the loan amount will be adjusted according to the customer's annual income
Further, there will be instances where actual loan amount will differ from the customer's desired loan amount due to the valuation of the property
For more detailed information, please contact our PowerCall
4. Loan Term The customers may select from 5 years and over and up to 35 years (in units of 1 year)
5. Interest Rates The customer will be requested to select rates from "10 year convertible floating rate," "Floating Rate (reviewed semi-annually,)"
or "Initial Fixed Rate." The details on the interest rates are the following:
For information on interest rate level and currently offered rates, please visit our (http://www/shinseibank.com) or call Shinsei PowerCall
Once the home mortgage loan has been contracted, the customer will not be able to change to the "Long-Term Fixed Interest Rate."
Please note that the customer will be exposed to the interest rate risk (floating) which may increase the amount of monthly repayment.
10 Year Convertible Floating Rate Floating Interest Rate (reviewed semi-annually) Initial Fixed Interest Rate
%ÏThe mortgage will begin with a floating rate. The customer may
select to fix the rate with applicable fixed rate, type depending on 0 %Ï"Standard Initial Rate" or "Campaign Initial Rate," either or selected at the time of contract, will be applied up to the prior day
remaining years of the initial special contracted 10 years of the date of first interest rate revision
(may fix one time only) 0 %ÏPrescribed "Home Mortgage Standard Rate" will be applied after first interest rate revision
%ÏApplied interest rate (annual) for "Floating Rate Applied
0 %ÏThe applied rate for the initial borrowing term will be from the time of contract closing and not the time of application. Therefore,
Term," "Fixed Rate Applied Term" or "Period Remaining After
please note that the actual rate applied towards the mortgage may differ from the rate offered at the time of application (due to
the Special Contracted Term of 10 years" will be the following: interest fluctuation.)
1-Floating Rate Applied Term
0 %ÏAs a general rule, the bank reviews the initial interest rate every month; however, based on the interest rate movements, rates may
0 "Home Mortgage Standard Rate" Floating Rate (daily) type be reviewed during the month. Please confirm the borrowing terms and initially applied interest rate before home mortgage
minus 0.5% p.a. contract closing.
* Rate is subject to change on daily basis without notice.
0 %ÏIf a fixed interest rate type is selected after the initial borrowing term is over and with an outstanding balance over 5MM,
00 The applied rate at the time of initial borrowing will be from the following rates will apply:
the rate offered at the time of disbursement and not the $` Initially selected "Campaign Initial Rate": "Home Mortgage Standard Rate" Fixed interest type minus 0.4% p.a.
$a Initially selected "Standard Initial Rate" : "Home Mortgage Standard Rate" Fixed interest type minus 0.7% p.a.
time of application.
However, if Mix Loan Service is selected (refer to No. 6 below,) the limitations regarding the outstanding balance will be determined
2-Fixed Rate Applied Term according to each selected loan.
0 1,3,5,7, & 10 year fixed interest rate will be applied depending
0 on the remaining years of the special contracted term; 0 %ÏThe rate will be reviewed twice a year during the tenor %ÏCustomer may select from 1, 3, 5, 7 or 10 year fixed interest
"Home Mortgage Standard Rate" Fixed interest rate type of the mortgage. For details on the timing of the interest rate term
minus 1.0% p.a. 0 rate review, please refer to the loan agreement.
3-Period Remaining After the Special Contracted Term of 10 years %ÏThe applied rate throughout the above selected term is not
Unless instructed by the customer, " Floating Rate 0 %ÏIf the customer chooses to revise the rate from floating interest subject to change.
(reviewed semi-annually)" will be automatically applied. 0 rate to fixed interest rate, please request to change the interest
Alternatively, customers may choose to fix the applied rate rate within the 1st thru the 15th of the interest rate revision month. 0 %ÏUnless instructed by the customer, " Floating Rate
from one of the "Home Mortgage Standard Rate" fixed interest rate types. (reviewed semi-annually)" will be automatically applied.
If fixed interest rate type is selected with an outstanding Alternatively, customers may choose to fix the applied rate
balance of over 5MM, "Home Mortgage Standard Rate" Fixed from one of the "Home Mortgage Standard Rate" fixed
Interest Rate minus 0.4% p.a. will be applied. 00 interest rate types.
However, if Mix Loan Service is selected (refer to No. 6 below,) the
limitation regarding the outstanding balance will be determined
according to each selected loan.
6. Mix Loan Service
%ÏCustomers will have the choice of selecting two of the offered "PowerSmart Home Mortgage" under this service. The mix loan will be limited to two mortgages and may not select two or more.
%ÏThe loan term for each mortgage will be optional. However, "Floating Rate" and "Initial Fixed Rate" types are limited for mortgages 5-35 years ( in units of 1year.) For "Long-Term Fixed" type,
20-35 years (in units of 1 year) must be selected and the customer must be under 80 years of age at the time of maturity of the mortgage.
%ÏThe total of two mortgages under this service must be over 10MM, with each mortgage over 5MM (in units of 100,000 yen.) Please note that this service will not be available if the mortgage
amount is not over the specified amount.
0 %ÏThough the loan term and amount requested fulfills the Bank prescribed credit regulations, if the Bank finds the mortgage repayment plan to be beyond the customers' ability to repay,
mortgage condition may not be approved or may be asked to be reviewed.
%ÏPlease note that when this service is applied, "Overdraft Service with time deposit collateral, etc." will not be available.
%ÏLoan agreements and collateral setting agreements must be concluded for each mortgage selected by the customer.
7. Method of Repayment 0 %ÏPrincipal and interest equal repayments will be made for this home mortgage
Monthly installed payment (principal and interest) will be automatically withdrawn on the 26th of every month (if the 26th falls on a holiday, the next business day will apply) from the
repayment account. Please confirm that there is sufficient funds in the repayment account to make the repayments. Further, up to 40% of the mortgage amount may be
paid through semi-annual additional repayments (bonus months additional repayments.)
0 %ÏPlease note that if interest rate is reviewed and the applied rate for the mortgage has changed, the monthly repayment and bonus repayments will be recalculated and may be
subject to change accordingly.
0 %ÏFor monthly repayment calculations on selected interest rate type, please contact our Shinsei PowerCall.
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8. Smart Payment
(Automatic Early 0 %ÏIf this service is applied, any amount exceeding the pre-designated amount in the customer's repayment account will be automatically withdrawn as partial early repayment on daily basis.
Repayment) (SmartPayment will be 10,000 yen minimum per transaction in 1 yen unit)
0 %ÏBy making partial early repayment through this service, the term of the loan will shorten according to the amount of repayment made. Moreover, if
bonus repayment applies, contracted bonus payments will take precedence over monthly repayments and will be withdrawn from the repayment
0 %ÏEarly repayment will be free of charge.
0 %ÏTo suspend or reactivate this service or to change the pre-designated balance in the repayment account, please visit one of our branches or call us at PowerCall. Changes of
the above will be accepted until 15:00 at the branches and 19:00 for PowerCall.
0 %ÏAt time of contract closing, customers will be asked to select which mortgage this service will be applied to when Mix Loan Service is applied [the selection will be irrevocable after the
loan agreement(s) is (are) concluded.] Furthermore, this service is only available for one of the two mortgages selected. Please note that 9. Overdraft Service may not be available depending
on the mortgages selected.
0 %ÏCustomers may reborrow up to the total amount of early repayments made as an overdraft.
"PowerPocket 0 %ÏAs a principal rule, there are no restrictions on the purpose of the overdraft; however, please note that the funds may not be applied
Service" towards business capital.
0 %ÏWhen overdraft is made, irrelevant to the applied housing loan rate, the 6 month floating rate will be applied. The rate will be reviewed on a monthly
basis until the overdraft is repaid.
0 %ÏThis service will be unavailable once the housing loan is repaid.
0 %ÏDeposits made to the housing loan repayment account will be applied towards the overdraft repayment, irrelevant to the outstanding housing loan. Please
pay close attention to the balance in the housing loan repayment account when there is an outstanding balance for overdraft.
0 %ÏIf there should be an outstanding balance for an overdraft when the housing loan is fully repaid, the overdraft must be repaid before the initially
agreed term of the housing loan. In addition, this repayment method will be principal and interest equal repayment and bonus repayment (semi-
annual additional repayments) will not be available.
0 %ÏPlease note that the overdraft outstanding balance under this service will not apply to the special tax exemption on housing loans (housing loan tax
0 %ÏUnder the Mix Loan Service, this service will be limited to the pre-specified mortgage with the SmartPayment function. However, this service is not available for the "Long-Term Fixed Rate"
mortgages. Please select with caution when applying the Mix Loan Service.
0 %ÏUntil the housing loan and/or the overdraft balance is repaid in full, the land and building of the property purchased will be set as 1st lien and
revolving collateral will be registered.
0 %ÏFor customers without permanent residency, in addition to the 1st lien and revolving collateral registration, provisionary registration of security interest (transfer of real estate property) will also be registered.
0 %ÏCollateral setting will be registered for each individual mortgage under the Mix Loan Service. "Floating Rate" and "Initial Fixed Interest Rate" mortgage will be registered with revolving collateral.
For "Long-Term Fixed Rate" mortgage, standard collateral will be registered.
%ÏPlease note that the registration license tax for standard and/or revolving collateral registration will be the same with or without the Mix Loan Service. However, the stamp duty for the loan
agreement will vary according to the amount of the mortgage requested. Furthermore, the scrivener fee will increase if Mix Loan Service is selected.
0 %ÏCustomers will be required to obtain a long term (longer than the tenor of the loan) fire insurance policy for the property under the loan. The Bank will hold the option to set a pledge against the insurance claim.
0 %ÏPlease note that all fees involving collateral registration will be borne by the customer.
0 As a general policy, guarantors are not necessary. However, co-owner of the property or joint income co-signers are required to be mortgage and overdraft guarantors. There will be exceptional
cases where the Bank will request the applicant to appoint a guarantor depending on application and credit approval processing.
12. Guarantee Fee NONE
13. Service Fee 0 %ÏHandling fee of 50,000 yen (tax included) will be charged. Handling fee for mortgages under the Mix Loan Service will also be 50,000 yen.
0 %Ï5,000 yen (tax included) will be charged to fix the interest rate after the initial fixed term is over. If Mix Loan Service is applied, 5,000 yen will be required to fix the interest rate per each loan.
%ÏIssue of home mortgage balance statement (at year end): FREE; 1,000 yen per additional issues
%ÏReissuance of home mortgage repayment schedule: 1,000 yen per issue; *Note: Repayment schedule will start from the time of request and will not be back dated.
%ÏIssue of home mortgage balance statement for guarantor: 1,000 per issue
14. Other Fees
%ÏIssue of interest-paid statementÿ 1,000 yen per issue
%ÏIssue of principal-paid statementÿ 1,000 yen per issue
0 ; For Mix Loan Service, the above statements will be issued for each loan selected. There are no statements which complies the loan details in one statement.
Therefore, please note that the applicable statements above will be issued for each loan selected and fees for additional issuance of the statements will be borne by the customer.
0 %ÏIt will be mandatory to join the Bank designated group life insurance. The group life insurance will cover the outstanding mortgage of the insured in the event of death.
15. Group Life Insurance
The insurance premium will be borne by the Bank.
0 %ÏAny outstanding balance of the overdraft will not be insured by the group life insurance.
0 ; All applications will be examined through Bank specified credit approval process. Advance understanding is requested for those applications which do not qualify under the Bank policy.
0 ; "10 Year Convertible Floating Rate" is a campaign product. The product may discontinue without advance notice in the event of interest rate fluctuations.
0 ; The purpose of this home mortgage is limited to refinance from another financial institution, purchase of a new/second hand property (detached house/apartment unit,) construction of newly built detached house
(lump sum disbursement at the time of completion) and land purchase (construction of residence must be completed within a year from purchase.) Please note that this home mortgage is not available for extension or
reconstruction (including those with conjunction with refinancing.)
0 ; Please call our PowerCall (0120-456-515) for current interest rate level.
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