Is there a penalty for repaying the mortgage in advance?
Whether there is liquidated damages for returning the house in advance depends on the provisions in the loan contract signed with the bank. If it is agreed to pay liquidated damages for early repayment, liquidated damages will be paid. If there is a fine, if you want to repay the mortgage in advance, you must first call the bank where you borrowed money to ask about the fine for repaying the mortgage in advance.
In addition, prepayment is generally limited to a certain number of times, but the regulations of different banks may be different. Generally speaking, prepayment can only be paid once or twice in a year. If you want to repay the loan in advance, you'd better consult your own loan bank, which will explain the minimum repayment amount and the number of repayments each year.
Why should I pay liquidated damages for prepayment?
Every bank has its own capital lending plan every year. When the bank's capital lending quota has reached the standard this year, the bank's lending quota will be tightened. On the contrary, when the loan amount is not reached, it is necessary to increase the bank loan amount. The money repaid in advance by the repayment person was last year's loan, which led to the interruption of the bank's original loan plan.
In the bank loan business, there is no doubt that mortgage is the biggest one! Every year, the loans of major banks are mostly in the tens of billions, and the high mortgage interest is an important source of income for banks. If property buyers demand early repayment, it is equivalent to the disappearance of this big cake in front of them, which is also unwilling for banks.
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