General mortgage loans can only be applied for early repayment after one year of repayment. Usually banks will have clear requirements in the mortgage contract. If the borrower needs to make an early repayment, it is recommended to consult the bank first and make an appointment in advance before going through other formalities.

Precautions for prepayment of mortgage loan

1, make an appointment in advance

If you plan to repay the loan in advance, you must pay attention to making an appointment with the bank first. The appointment time generally needs to be within the loan period, within one year after the loan is issued. With the consent of the bank, you can apply in writing to repay part or all of the loan in advance. General banks need 2-7 working days to handle this business. Banks have different regulations on early repayment of loans, so lenders must make clear the operating procedures of loan banks before deciding to repay loans in advance.

2. Handle the cancellation of real estate mortgage in time.

After paying off the loan in advance, the buyers also need to go through the mortgage cancellation procedures, which is the most critical. The real estate license is mortgaged to the bank during the loan period, and the house cannot be rented or resold, so the mortgage must be released after the loan is paid off, otherwise the mortgage record will still be filed in the real estate department, laying a hidden danger for the future.

3. Do not repay the provident fund first for partial repayment.

If you choose a portfolio loan when buying a house, the loan should be divided into two parts. In addition to provident fund loans, there are commercial loans. Bian Xiao suggested that commercial loans should be repaid in advance, because the interest of commercial loans is higher than that of provident fund loans. If part of the commercial loan is paid off first, then for individuals and families, the monthly mortgage pressure will definitely be reduced and the interest will be saved.

4. Go to the insurance company to surrender in time.

After paying off the loan, the borrower still needs to surrender to the insurance company, because when signing the housing loan, he will sign the housing loan home insurance contract and pay the insurance premium every month. If you pay off the loan in advance, you can surrender it and go to the insurance company with the insurance policy and proof of early repayment.