Article 1 › 8

For the purposes of paragraph 5 of this Article, all of the following conditions shall be met: (a) the exposures qualify for the treatment pursuant to Article 125(1); (b) the qualifying exposures are risk weighted in accordance with Part Three, Title II, Chapter 3; (c) the residential property securing the qualifying exposures is located in the Member State that has exercised the discretion; (d) over the last eight years the institution’s losses in any given year, as reported by the institution pursuant to Article 430a(1), points (a) and (c), or pursuant to Article 101(1), points (a) and (c), in the version of those points applicable on 27 June 2021, on the part of the exposures secured by mortgages on residential property up to the lower of the pledged amount and 55 % of the property value, unless otherwise determined under Article 124(9), do not exceed on average 0,25 % of the sum of the exposure values of all outstanding exposures secured by mortgages on residential property; (e) for the qualifying exposures the institution has the following enforceable rights in the event of the default or non-payment of the obligor: (i) a right on the residential property securing the exposure or the right to take a mortgage on the residential property in accordance with Article 108(5), point (g); (ii) a right on other assets and income of the obligor either contractually or by applicable national law; (f) the competent authority has verified that the conditions set out in points (a) to (e) are met.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04