There is no need to go to the loan bank desk for repayment. Most loans are repaid by automatic deductions from the system. Users only need to deposit the repayment funds into their bank cards before the repayment date. Then, on the repayment date, the system will naturally initiate automatic deductions. Or users can also actively repay through online channels. Unless they apply for early repayment, there is no need to go to the lending bank for normal repayment.

Of course, no matter what repayment method users choose, they must pay attention to repaying on time.

1. How to apply for early repayment of mortgage loan

1. We first call the lending bank to request early repayment of the loan principal. After obtaining the approval of the bank, bring your ID card, loan contract, repayment card, property ownership certificate or house purchase contract to the designated branch of the bank for processing. We will give the information to the staff at the early repayment window, and we will issue an order for you to process at the bank counter.

2. Go to the bank counter and deposit the money into the repayment card. The bank will automatically deduct the money and give the lender a deduction receipt after the deduction. The lender hands the deduction receipt to the staff at the repayment window, and the bank will give the lender a settlement certificate.

3. Later, the bank staff will take the other rights with the lender to the Housing Authority to cancel the other rights. After canceling the other rights, the house will be fully paid.

2. Situations in which early repayment is not recommended

1. Those who use provident fund loans or enjoy larger discounts when borrowing.

As of now, the provident fund loan interest rate for five years or more is 3.25, and the commercial loan benchmark interest rate is 4.9. Coupled with discounts, the execution interest rate has reached 4.165, which can be said to be a very low level. Since you have already enjoyed lower interest rate discounts and are currently in the process of interest rate cuts, it is more cost-effective to use the idle funds in your hands to do some financial management. On the contrary, if you repay the loan early, you will have to pay a high penalty according to the contract.

2. One-third of the equal principal repayment period has passed.

Equal principal payment means dividing the total loan amount into equal principals, and calculating the repayment interest based on the remaining principal. In other words, the later this method reaches, the less principal will be left and the less interest will be generated. If you have repaid more than 1/3, it means that you have repaid nearly half of the interest. What you will repay in the later period is more of the principal. The level of interest has little impact on the repayment amount.

3. The equal repayment of principal and interest has reached the mid-term.

Equal principal and interest is to add the total principal and interest of the mortgage loan and then spread it evenly into each month. In other words, the proportion of principal in the monthly repayment increases month by month, and the proportion of interest decreases month by month. By the middle of the repayment period, most of the interest has been repaid, so there is little point in repaying the loan early.