Is the commission that banks charge for early repayment of mortgage debts legal?

Yes, it is legal, providing it respects maximum limits. It can of course be agreed that no commission is taken.

  • Mortgages at variable rates signed before 04/27/2003: The maximum commission will be 1%, whether it is a cancellation per subrogation or not.
  • Mortgages at variable rates signed between 04/27/2003 and 9/12/2007:In the case of early cancellation by subrogation, the maximum fee will be 0.5%. If it is not by subrogation, the maximum commission will be 1%.
  • Mortgage loans at fixed ratessigned before December, 9th, 2007: maximum limit of 2.5% for early cancellation. For those formalized as of 9/12/2007 will have to attend the compensation regime for withdrawal and / or interest rate risk (below).
  • Mortgages (fixed and variable) formalized as of 9/12/2007: Here we refer to (1) a commission for withdrawal and / or (2) compensation for interest rate risk.

(1) As for the compensation (commission) for withdrawal, the commission cannot exceed 0.5% of the capital amortized in advance if it occurs in the first 5 years of the loan and may not exceed 0.25% if it occurs after the first 5 years.

(2) If we talk about compensation for interest rate risk, the rules (article 9 of Law 41/2007 does not stipulate a maximum limit), will be the one that has been agreed in the contract, and “will depend on whether the cancellation generates a profit or a loss of capital to the entity”

  • No cancellation fees from sixth year?

A preliminary draft of the Real Estate Credit Regulatory Law that responds to the transposition of the European Directive 2014/17 eliminates the commission for early repayment if it occurs from the sixth year. That is, the commission that could be up to 0.25% will be 0 from the sixth year. This Law has not yet been approved and it is to be approved within the next few months.

 

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