Customers can make early home loan repayments multiple times without paying commission to the bank and tax to the state

The government estimates that the decision to suspend the Early Consumption Committee, until the end of next year, could have an impact of up to 50 million euros on the state.

“A measure of early amortization of mortgage loans, in which the stamp duty levied on the early amortization committee is waived, costs are estimated to be between 20 and 50 million euros, depending on the behavior of households in the commitment to early amortization,” according to Collection of questions and answers That the Ministry of Finance published this Wednesday 30 November.

The decision to suspend this committee is one of the actions taken by the executive branch Diploma in Residential Credit Which aims to set clearer rules to limit the impact of higher Euribor prices. With this commission suspended, the government intends to facilitate credit transfers between banks, as customers look for better conditions (Margins Lower or lower costs with complementary products) – This is because when there are transfers, it is necessary to anticipate the amortization of credits in the granting bank.

The government advocates for “encouraging competition in the mortgage market (by reducing the cost of transferring credit to other institutions) and creating money application solutions for those who have made savings.” The suspension of this commission until the end of 2023 also allows households to use any excess liquidity (deposits) to stop paying debts.

The commission in question, which banks cannot collect, is 0.5% of the amount refunded in advance in the case of credits with variable rates, and a stamp duty of 4% is also calculated on the commission. The loss of tax revenue of €50 million would occur if there was a collective commitment to this transfer within the next year.

In the explanations given by the government, it was explained that until the end of next year, the customer can make early amortizations as many times as he wants.

He points out that “consumption can be total or partial and can be made several times while the procedure is in effect.”

That is, if there is a margin, the customer can reduce his debt above the planned payment plan without fees – this measure is effective from Saturday 26 November and extends until 31 December 2023.

Measure for everyone, even over 300 thousand

This is a measure aimed at all holders of variable rate mortgages (indexed with Euribor), regardless of the amount outstanding – however, it does not apply to fixed rate customers, where commission is charged even greater than 2%.

The remaining measures, which open the door to the obligation of banks to renegotiate the terms of housing loans, are intended only for loans with an outstanding amount of up to 300,000 euros.

The housing loan renegotiation measure has no discretionary effect on the budget, and here too there may be matters where there can be payments to the state (eg fees or land registration, for which an exemption has been created).

(The news has been corrected to clarify that the procedure extends to December 31, 2023, not 2022, as it was written by mistake and error in the first copy)