Hello there!
I only have to pay something like a 100 000 NTD left on my loan to completely own our apartment.
The question is since the loan was meant to run for 20 years, will we be fined if we pay back early?
Thanks!
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That will depend on the T&C’s on the repayment agreement.
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Thanks, if we ask them beforehand can we rely on the information given, or better to get some professional consultation first?
You could always inquire with the bank what the repayment policy is, but it should already be outlined in your agreement.
If there is a repayment caveat and you feel its one sided you will have to get professional advice.
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Thanks!
So I will delay this for a couple of weeks and seek some help.
Congrats!
You have to ask, but everywhere I asked when I was doing my house loan said no, it’s not a problem.
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Check out the potential side effects of completely owning your own home mortgage free before completely paying it off. Sometimes it’s not a bad thing to leave the mortgage open with a very small amount.
I would like to hear more. Can you provide examples?
Maybe there is a tax incentive?
Possibly. Was hoping he would elaborate.
Almost surely there will be a penalty. They don’t want early repayments. I would assume Taiwan banks also repackaged your mortgage for investors that get returns from your interests.
Are you nuts? Banks practically orgasmed in front of me when I suggested early/extra payments. When you’re viewed with suspicion… they will happily take it.
Taiwanese banks and businesses are not British finance. They will happily forego long term profits if it means they might not receive even one dollar that they are entitled to.
I don’t know how Taiwan banks does it, but banks in the west do not want early repayments.
You’re totally right. In the Anglo world this is how it works. But OP is asking about Taiwan as he listed his loan in TWD.
Taiwanese banks would rather not take risks if they did not have to. Any less risk is desirable.
Especially if you are a foreigner. I wanted 30 years. They’d make more money at 30 years.
They only wanted 20.
Of course I don’t know the size of your mortgage, but wouldn’t that just be a few more months anyway? At most a year? (I.e., at this stage, why bother?)
EDIT: Also see here, where I asked a similar question a couple of years ago (and because I’m a lazy twit I’ve done nothing with the information):
The way I see it right now is that the value of the apartment is 5X the loan.
If we default on the last meter, it should be big business for the bank doing a foreclosure.
I might be wrong since I never had one.
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Yeah they were hawkish on me too. Do you see yourself defaulting though? I mean, you could just drop $100 000 into an account and set it on autopay too.
But like I said, ask them.
The apartment is only worth 500,000?
Are you it’s just 5x the loan?
Maybe 50x?
I think he means it’s 5x the value of the entire loan, not what’s currently owed.
Like, he borrowed $2 million, but it’s worth $10 million.
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Ah