Provision 6.12 of the Central Bank Consumer Protection Code states that, where a regulated entity offers an incentive to a personal consumer on an existing mortgage (and, following an addendum to the Code which came into effect on 1 January 2019, now also in respect of a new mortgage), the regulated entity must provide the personal consumer, on paper or on another durable medium, with the information needed to consider the incentive offered.
This information must:
a) quantify the implications for the personal consumer of availing of the incentive including an indicative cost comparison of the total cost of the existing or new mortgage if they do not avail of the incentive and the total cost of the mortgage if they avail of the incentive;
b) clearly set out the length of time during which the incentive will be available;
c) clearly set out any assumptions used, which must be reasonable and justifiable;
d) set out the advantages and disadvantages to the personal consumer of availing of the incentive;
e) include other key information which the personal consumer should have available to them when considering the incentive; and
f) include a statement that the personal consumer may wish to seek independent advice prior to availing of the incentive.
This provision requires that consumers have sufficient clarity about the precise nature and scale of the benefit of an incentive to them, including the potential impact of an associated incentive on the cost of their mortgage.