The withdrawal fee compensates two types of variables:
Compensation based on the date the mortgage was arranged
There are limits to this compensation based on when the debt is repaid and when the mortgage was arranged:
- For variable-rate mortgages signed before 2007, entities can charge up to 1% of the principal repaid, providing this repayment is not due to subrogation of the mortgage.
- There have been two types of limits for both fixed and variable-rate mortgages since 2007:
- If the repayment occurs during the first five years of the loan, 0.5% of the repaid amount is charged.
- If repayment occurs after the first five years, this withdrawal fee is 0.25%.
Compensation based on the interest rate
The law also establishes an interest rate risk fee for fixed-rate and mixed mortgages. This compensation can only be charged on mortgages with a term of more than 12 months and the financial institution can agree the amount involved.
This compensation can only be charged when the repayment of the debt causes a loss to the entity, i.e. when interest rates are lower than those being paid at the time of the early cancellation or repayment.