The terms of repayment of loans taken before the entry into force of the Mortgage Loan Act are only specified in contracts with banks. After July 21, 2017, the maximum costs associated with early repayment shall be specified by statute.
If you plan to pay off all or part of your liability quickly, then it is worth consulting an Good Finance advisor at this stage of the offer selection.
Mortgage overpayment – does it make sense?
In most banks, overpayment of the loan in the first years is associated with additional costs. The amount of additional fees charged to the borrower may depend on the period that has elapsed since the conclusion of the contract or the value of capital repaid ahead of schedule.
Credit agreements often provide for high compensation fees for overpayment of capital in the first 5 years of the duration of the contract.
Some banks also try to limit the value of early tranches by using higher commissions, e.g. in the case of overpayment of more than 50% of the capital value. Some contracts provide for different conditions for the first tranche of early repayment capital and subsequent ones.
Choosing a mortgage with the intention of capital overpayment eg.
From funds obtained from the sale of the old apartment, it is better to get familiar with the procedure of early repayment. Consultations with an experienced Good Finance advisor will allow you to choose the right loan offer and prepare a favorable early repayment schedule even at banks charging additional costs in this respect.
It is worth adding that debt reduction is one of the better investments during the term of the loan agreement.
Borrowers can take advantage of the option of lowering the monthly installment, shorten the total loan period or choose a combination of these solutions. An Good Finance financial advisor can also help you adopt an appropriate debt reduction strategy.
Early mortgage payment – how to do it?
The terms and procedure for early repayment or partial overpayment of a loan taken before the entry into force of the Mortgage Loan Act is specified in the agreement with the bank. For loans concluded after July 21, 2017, the procedure is partly regulated by statute.
At the borrower’s request, the bank is obliged to inform about any costs related to early repayment within 7 days. In the case of loan agreements providing for different variants of charging fees for early partial or total repayment, it is worth using consultations with financial advisors. Good Finance will help minimize the costs of early debt reduction.