You can repay the mortgage in advance after one year. Most banks stipulate that borrowers can apply for early repayment after one year of mortgage repayment, so there is no need to pay liquidated damages, but some banks stipulate that they can repay in advance after more than half a year. But the actual need is subject to the requirements of the bank. You can first check the time promised in the mortgage contract and consult the bank's regulations on liquidated damages.

When is it cost-effective to repay the mortgage in advance?

In fact, when to repay the mortgage in advance depends mainly on the actual situation of the borrower. In essence, the borrower chooses to repay the loan in advance in the hope of saving some interest.

Assuming that the borrower chooses to repay with equal principal and interest, the first 3/ 1 time is basically interest in the repayment process. In this case, if the borrower wants to repay the mortgage in advance, it is recommended to repay the principal before the repayment time of 3/ 1. This can greatly reduce the principal, and the loan interest is naturally saved.

If the borrower chooses to repay the same amount of principal, the first 3/ 1 is the repaid principal. Under such circumstances, if the borrower wants to repay the mortgage in advance, it is recommended to repay the loan after 3/ 1. Because in this case, the loan interest can also be saved a lot.

What needs to be reminded to borrowers is that repaying loans in advance is essentially a breach of contract. Many banks will stipulate that if the borrower's repayment time is less than three years, he will be charged liquidated damages for repaying the loan in advance. If you don't want to pay liquidated damages, it is recommended that the borrower choose to repay in advance after 3 years of repayment.

Provisions of different banks on liquidated damages for early repayment

1. Bank of China: If the prepayment is less than one year, a penalty of no more than six months' interest will be charged. If the loan is repaid in advance after one year, there will be no penalty interest, just like the Agricultural Bank.

2. China Construction Bank: 3% of the prepayment amount will be charged if the prepayment is less than one year. One to two years 2%, two to three years 1%.

3. Agricultural Bank: If the prepayment is less than one year, it will be charged according to the principal × monthly interest rate, and no penalty will be charged for the loan for one year.

4. Industrial and Commercial Bank of China: 5% of the prepayment amount will be charged for prepayment less than one year, and no penalty will be charged for prepayment after one year of loan, just like Agricultural Bank.

5. Bank of Communications: There are provisions for prepayment, which is at least 6 times of the monthly repayment. Some prepayments can be paid once a year for free.

6. China Merchants Bank: Repay in advance within one year, and charge at least three months' interest relative to the actual repayment amount, and only one month after one year.

7. Guangfa Bank: Repay in advance within one year, and charge two months' interest as penalty. If the loan is repaid in advance after one year, like the Agricultural Bank of China, there is no penalty.

8. China Everbright Bank: 3% ~ 6% interest will be charged as penalty for prepayment within one year. As long as it exceeds one year, like ABC, there is no penalty interest.

9. Shanghai Pudong Development Bank: If the prepayment is less than one year, there are two ways of liquidated damages: one is 1.5% interest, and the other is 3% interest. No liquidated damages will be charged after the loan is over one year.

The above information is for reference only, subject to the provisions of the loan sub-branch.

Can the mortgage be repaid in advance? You can apply for early repayment after one year of mortgage.

Can the mortgage be repaid in advance? It is reported that the applicant can apply to the loan bank for early repayment after one year of mortgage loan. Some banks also support early repayment of mortgage loans less than one year, but banks will charge a certain penalty.

I want to repay my mortgage in advance. Under normal circumstances, banks will require applicants to apply for early repayment after one year of mortgage. Many banks can also repay their loans in advance, if it is less than one year. In this case, the bank will charge a certain penalty. Regarding the collection of liquidated damages for early repayment, the regulations of different banks are different.

If you must repay the mortgage in advance in less than one year, you must first consult the bank that loaned it. Pay off the mortgage in advance. Most banks will not charge liquidated damages after one year of general mortgage. Of course, a few banks will charge some liquidated damages for the mortgage within 2-5 years. The collection of liquidated damages generally ranges from 3% to 5%.

Individual prepayment can be divided into one-time prepayment and partial prepayment. If it is a partial loan, the bank will have a minimum repayment limit. Therefore, it is recommended to consult the bank of the loan before repaying the mortgage in advance to understand the relevant provisions of prepayment.

Can the loan be repaid in advance after one year?

The best prepayment time for commercial loans is 1 year after the loan. After handling the commercial loan 1 year, users will choose the best repayment method at the best time, regardless of whether they use equal principal repayment or equal principal and interest repayment. Among them, the borrower requires the user to pay liquidated damages, but the liquidated damages will be lower than the interest earned.

Extended data:

Commercial loans, in fact, can also be called personal housing loans, urban residents can go to the bank to apply for commercial loans when buying a house. In this way, only a down payment is required to buy a house, and the balance is paid in the form of a loan.

The application conditions for commercial loans mainly include:

1. The applicant should be between 18 and 65 years old.

2. The object of commercial loans is urban residents, so the applicant must have a permanent residence in the town or a valid residence status.

3. The applicant must have a legal and stable job and income, and can provide proof of work and income to prove that you have the ability to repay the loan principal and interest on time.

4. Need to provide a house purchase contract, agreement or letter of intent.

5. Need to provide proof that the down payment accounts for at least 30% of the house price. But different banks may have different requirements for down payment.

6. The applicant must have assets recognized by the lender as collateral or pledge, or have a guarantee recognized by the lender.

7. Personal credit should be good, and bad credit records are not allowed on personal credit records.

8. In addition to the above conditions, the lending bank may stipulate other conditions, depending on the bank you are lending.

Changes in commercial loan interest rates:

If the user chooses LPR fixed interest rate mode, the commercial loan interest rate will remain unchanged during the loan period. The user selects the LPR base point floating interest rate model. When LPR is adjusted, the commercial loan interest rate will change in the next year. Therefore, whether the commercial loan interest rate will change is related to the loan interest rate model.

LPR fixed interest rate model or floating interest rate model has its own advantages and disadvantages. Users can choose the loan interest rate model according to their own cognition and needs.

After buying a house, transfer the commercial loan to the provident fund:

Commercial loans can be transferred to provident fund loans after buying a house. Users who meet the conditions of commercial loans to provident fund loans can apply for commercial loans to provident fund loans. It should be noted that some areas require commercial loans to be paid off before they can be converted into provident fund loans, which requires users to prepare repayment funds in advance. Without sufficient repayment funds, commercial loans cannot be converted into provident fund loans.

Local regulations allow commercial loans to be directly converted into provident fund loans without repayment, so users do not need to pay off commercial loans in advance. As long as the commercial loan is not overdue and the user meets the conditions of provident fund loan, he can directly handle the business of transferring commercial loan to provident fund loan. Since there is no limit on the loan amount of commercial loans and there is a limit on the amount of provident fund loans, when commercial loans are converted into provident fund loans, you can only apply for provident fund loans within the prescribed amount.

When the amount of provident fund loans is insufficient, users can apply for portfolio loans, which can solve the problem of insufficient provident fund loans. Commercial loans allow users to change to portfolio loans, but users need to meet the conditions of both commercial loans and provident fund loans.

So much for the introduction of prepayment after one year of loan.