Lower fee for moving mortgage to another bank

The change may boost preliminary prepayment of mortgages and replacement by new, cheaper, ones.

Bank, illustrative stock photoBank, illustrative stock photo (Source: Sme)

Paying off an old mortgage with a new, cheaper, one will not cost thousands of euros any more, as banks can charge a fee of only up to 1 percent of an early repaid mortgage starting March 21. Originally the fee might have been as high a 5 percent.

Thus when paying off a mortgage in the amount of €50,000, now the fee cannot be higher than €500. Clients were charged between €1,000-3,500 for the equivalent amount until March 18. Many banks have decreased the interest rates on mortgages well in advance to attract new customers, the Pravda daily wrote.

Read also:Re-financing boom will intensify Read more 

The annual interest rates on mortgages on the Slovak financial market currently hover around 1.5 percent.

“It would be reasonable for people to move their mortgages to cheaper banks if their current annual interest rate exceeds 2.5 percent and fixation of their interest rate will lapse after more than one and half a years,” said Maroš Ovčarik of Finančný kompas, a website dedicated to the comparison of banking products as cited by Pravda. 

Top stories

The open-air exhibition about the Old Market Hall

Rare historical photos uncover the story of Bratislava's Old Market Hall

Bratislava owes its rich market history to its location on the crossroads of ancient trade routes.


29. júl
The Devil's Viaduct near Tisovec.

From the archive: Little Switzerland awaits exploration

Tisovec, a town in central Slovakia, remains undiscovered at large.


31. júl
Gerulata in Bratislava - Rusovce

Another UNESCO world heritage site in Slovakia dates back to the Roman Empire

The western part of the Danube Limes is now listed on the World Heritage List.


30. júl