The EU said that the measures will ensure home buyers across the EU are fully informed of the real costs of taking on a mortgage, and properly protected against the worst risks.
Antolin Sanchez Presedo MEP said: “For most families, a mortgage is the biggest and longest financial commitment they make.
“So we need these rules to drive progress towards an EU-wide mortgage market that is stable, integrated, and above all sustainable, with a high level of consumer protection, good information and balanced relations between lenders and borrowers.”
MEPs endorsed the deal struck with EU member states because they are satisfied that the European Banking Authority will be able to investigate an alleged breach of the rules, or failure to implement them, and ask the competent authorities in the member states for any information enabling it to do so.
The legislation will cover mortgages on residential property, residential property including an office space and building land.