Partial and early repayment of the loan, repayment of the mortgage, building savings loan

The possibility of partial / early repayment of the loan is charged or penalized for some financial institutions. Usually it is a penalty expressed as a percentage of the amount of the extraordinary installment.

On the other hand, some banks allow partial, sometimes full, repayment without any sanctions. The conditions and possibilities of partial repayment should be addressed before signing a credit agreement with a financial expert.

Possibilities of repayment of building savings loan

money loan

For this loan product, it depends on the specific building society and the status of the loan agreement. If the loan is in the so-called regular loan phase, it can be repaid at any time and at any savings bank, either part or all of the debt. On the other hand, in the case of the so-called intermediate loan or bridging loan, it depends on the specific building society. For some, it is not possible to pay back at all. For others, a fine for which it does not pay.

However, there are a number of cases where early repayment is possible and, moreover, it pays off to the debtor. Savings on higher loan amounts amount to hundreds of thousands of dollars. It is advisable to consult the financial advisor as soon as possible.

Possibilities of repayment of mortgage loan

As a standard, mortgage loans can be repaid as of the date of fixation of the interest rate.

An exception may be the situation when the client of the bank negotiated a so-called float mortgage. However, these are the minimum on the Czech market. Nevertheless, some mortgage institutions allow up to 20% of the principal to be paid once a year, either for a smaller fee, sometimes even for free. In the future, a new law is under preparation, which would require an alternative of a fee-free repayment for each newly concluded loan contract.

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