The formula used by the banks is as follows:

Amt x (Rate on loan offer - rate available in market) x Time remaining in days

Divided by 36500.

So [€400000 (5.15 - 4.4%) x 600 days] / 36500

=> 400k x 0.75 x 6 / 365 = €4932

I have just assumed the rate available in market to be 4.4%. the bank will have the exact rate so this is where they get the €5k from.

Amt x (Rate on loan offer - rate available in market) x Time remaining in days

Divided by 36500.

So [€400000 (5.15 - 4.4%) x 600 days] / 36500

=> 400k x 0.75 x 6 / 365 = €4932

I have just assumed the rate available in market to be 4.4%. the bank will have the exact rate so this is where they get the €5k from.

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