Do you want to know if a lump-sum repayment of the mortgage in advance would result in default money? In the financing of home purchases, loans for the purchase of real estate are the way we often choose, which helps many purchasers to resolve the problem of inadequate housing. But would it be necessary to pay default money if we chose to pay one-off loans in advance

Do you have to pay default money at once

FIRST, IT IS CLEAR WHETHER DEFAULT PAYMENTS ARE REQUIRED, DEPENDING PRIMARILY ON THE BANK'S LOAN PROVISIONS AND OUR REPAYMENT. FOR EXAMPLE, SOME BANKS REQUIRE DEFAULT PAYMENTS EQUAL TO 31 TP3T IF WE REPAY THE LOAN IN ONE YEAR IN ADVANCE; IF THE DEFAULT PAYMENTS ARE MADE IN ONE TO TWO YEARS, THE DEFAULT RATE IS REDUCED TO 21 TP3T; IF THE DEFAULT PAYMENTS ARE MADE IN TWO TO THREE YEARS, THE DEFAULT AMOUNT IS REDUCED TO 11 TP3T; AND IF THE DEFAULT PAYMENTS ARE MADE IN THREE YEARS, THE DEFAULT AMOUNT IS NOT REQUIRED. IT WOULD THEREFORE BE PREFERABLE TO CONSULT THE BANK IN DETAIL。

In addition, there are several points to note in the early repayment process. First, there is an early appointment with the bank, as the usual advance repayment is agreed by the bank and more than one year after the loan is granted. You will also consult on the application process for early repayment and the documentation required. Second, it is important to review your loan contract to ascertain whether there are provisions for early repayment of liquidated damages. If you're not sure, you just have to confirm with the bank's loan manager that they'll give you a full answer. Finally, if you have chosen a combination of business and public-fund loans to purchase a dwelling, then if you want to pay back in advance, give priority to the repayment of bank loans。