The duration of mortgages and interest rates are generally high, and many people, in an attempt to relieve financial pressures, try to alleviate the situation by paying off in advance. In a timely manner, there are many who ask questions, and will the interest rate be adjusted after early repayment? Let's talk about it。

Does early repayment change interest rates

First, normally, the bank does not adjust interest rates after you have paid in advance. This rule is, in fact, conditioned by the floating interest rate clause in the loan contract, which, in order to adjust the rate, must satisfy the conditions set out in the clause. Although some contracts may contain provisions “after early repayment, interest rates may be renegotiated”, banks may, in practice, renegotiate interest rates only in very few cases in the light of market conditions。

In the case of my country, our central bank often adjusts the base rate in real terms, while the mortgage rate follows. However, it is only valid for new loans, which have been entered into without readjustment of interest rates. Thus, even if the benchmark rate changes, the contracted interest rate on the mortgage will remain unchanged。

So the process of early repayment is very simple:

1. Call the loan bank ' s customer service to confirm whether the advance payment can be made. If possible, make an appointment to submit an advance payment request。

2. Prepare the necessary advance payment information and submit an advance payment request within the agreed time。

3. Following approval by the bank, and in accordance with instructions from the bank ' s staff, the procedures for early payment shall be followed。

4. The last step, as required by the bank, is to deposit sufficient advance amounts into the assigned repayment account。