By Andrea Hargraves 
sEveryone with a variable rate home loan will be exempted from paying a commission on early repayment next year, remember deco protestwith the recommendation that “If you have some savings, Paying off home loans can be a good solution to reduce performance.
The Consumer Protection Organization has prepared a set of questions and answers that have come to clear up some doubts about amortizing debt capital in housing credit. Stay on top of 10:
1. Is there a minimum amount for repaying the home loan principal in advance?
“No. The amortization can be partial to the amount available or the total. However, the higher the amount to be amortized, the lower the amount of interest payable, and therefore the lower the monthly installment to be paid to the bank. Use the file we have provided above to simulate the effect of capital consumption on the monthly installments due. paying off “.
2. How much is the early amortization fee paid?
“Currently, the commission due to the bank for early repayment is 0.5% for variable rate housing loans, that is, five euros for every 1,000 euros repaid. For fixed rate housing loans, this commission is 2%, that is, 20 euros for every 1,000 euros repaid.
However, in 2023, with the measures announced by the government, floating rate housing loans will not pay an early amortization commission. If you have some savings on the side, and a variable rate home loan, this might be a good time to pay off the principal on your loan.”
3. Can I pay off my mortgage principal at any time?
“Yes, you can pay off the principal whenever you want. You don’t have to, for example, wait for the anniversary of the title deed.”
4. Can the bank refuse early payment?
“No, as long as there are no restrictions from a contractual point of view. Although this is rare, the contract may, for example, stipulate that early repayment is only possible a few years after the start of the contract.”
5. Is there a limit to the number of amortizations that I can make during the term of the loan?
“No. You can pay off the principal as many times as you want, that is, every month. However, it is better to save a good amount and make annual payments. If you make monthly payments, you will reduce the principal debt more quickly. However, if you make an annual amortization The reduction in the monthly installment due will be even more significant.”
6. After depreciation, does the premium decrease in the following month?
“If you make a partial payment of the principal amount owed, the period in which the reduction will appear in your monthly installment is seven days. If the payment is total, then the period will be ten days. However, if the monthly installment has already been issued or calculated, you may have to to wait until the following month to see a reduction in the amount payable.”
7. I paid off the full amount owed on my home loan. What should I do next?
“If you have already paid the full amount owed on your loan, then you have to ask for the allotment, which is a free document proving the settlement of the loan to the bank. Then, with the land registry office, you must ask for liability on the property, because when you buy it using bank credit, it is given as security” .
8. I have money invested in a PPR report. Can I use it to pay off the principal on my home loan in advance?
“No. PPR can be used, for example, to pay off overdue or owed installments on your home loan, but not to make early payments of outstanding principal on your home loan.”
9. I only have four years left before I finish paying off my 30-year loan. Should I consume?
“You can always amortize it if you do not have an alternative application for your savings that will allow you to get a larger profit. However, if you only have four years left to pay off the loan, you will not pay a high amount anymore in interest, and therefore, the cost of credit should not be too high.”
10. Does early repayment of debt capital have an impact on the IRS?
“No, at the moment it is only possible to deduct interest on credits contracted through December 31, 2011 from the IRS. Contracts concluded after this date do not have this tax advantage. However, since it is a significant expenditure for households, The DECO Proteste argues that, as in the past, it is possible to deduct interest on all housing credit contracts from the IRS.”
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