Spectator on facebook

Spectator on facebook

Lower fee for moving mortgage to another bank

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

(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: Read also:Re-financing boom will intensify

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. 

Topic: Finances and Advisory


Top stories

Night life in Bratislava will not end

Councillors for the Old Town adopt new opening hours for pubs, night clubs and restaurants.

Cvernovka's creative talents celebrate first open day at new premises Photo

Bratislava's art and design ateliers from the old yarn-making factory open their doors on May Day.

New premises for Cvernovka

How social networks can earn you a ticket to Germany

Can a status on a social network change someone’s life? Yes, if you write humorous stories about a fictive German ambassador.

Assaf Alassaf (r) talked about his life and his book in Bratislava

New investor to create 500 jobs in Nitra

A company following the Jaguar Land Rover carmaker to Nitra plans to create 500 new jobs and invest €17 million.

Tha Jaguar Land Rover draws also other investors to Nitra.