Commissions for Early Repayment: The Guide to the New Mortgage Law

You have saved some money and want to pay off your mortgage. It is a smart move. But then you read the small print of your contract and see that dreaded word: "Desistance Commission" or "Compensation for Early Repayment".

The Problem: The "Tax" on Savings

Historically, banks in Spain charged abusive penalties if you wanted to pay your debt ahead of time. Basically, they charged you for stopping paying them interest.

Many owners hesitate to amortize because they think the commission will "eat up" the benefits of saving.

The Agitation: Is What They Charge You Legal?

Here is where you need to be a Realist. The bank is a business, and losing your debt is bad for their business.

However, since the Real Estate Credit Law of 2019, the game has changed. Many old contracts contain clauses that are now null or limited by law. If you pay what the bank asks without checking, you could be giving away money.

For mortgages signed after June 2019:

• Variable: Maximum 0.25% (years 1-3) or 0.15% (years 1-5). 0% after.
• Fixed: Maximum 2% (first 10 years) and 1.5% (rest).

If your mortgage is variable and is more than 5 years old, your commission should be €0.

The Solution: Calculate the Real Cost

Even if you have to pay a commission (e.g., 2% on a fixed mortgage), it rarely exceeds the interest savings.

Let's run the numbers. Paying a €200 fine to save €15,000 in interest is the most profitable investment you will make in your life. Do not let a small commission paralyze you.

📱 The Simulation on Amorti

Let's check if it pays off to pay the fine.

1. Enter your mortgage in AmortiApp.
2. Go to "Extra Payments" and enter the amount you want to amortize (e.g., €10,000).
3. Look at the "Interest Saved" field. Let's say it's €12,000.
4. Calculate your commission manually (or look for the commission field in the app if available): 2% of €10,000 = €200.

The Analysis:

• Cost: €200
• Benefit: €12,000
• Net Result: +€11,800

The fear of the commission is irrational compared to the magnitude of the savings.

Verify your numbers and break the chains.

Calculate My Real Savings