Spain will establish a law by which the costs in early cancellation of mortgage and real estate loans will be reduced
Spain will establish a law by which the costs in early cancellation of mortgage and real estate loans will be reduced, even if said loans were signed before the law appears. The redaction on this commission will take the form of caps that will be establish according to the years that the loan has remained active.
Currently the Spanish law establishes a cap for this type of commissions of 0,50% during the first five years, and 0,25% after the fifth year.
The new law will set a cap of 0,25% for the first five years (or the amount that entity could suffer due to the cancellation), although the cap for the first three years will still be 0,5%. It will also establish total exemption in terms of early cancellations from the sixth year onwards.
Therefore, taking into account the current legislation and the new law that will appear, the commission rates for early cancellation in Spain will be the following in the future:
- – 0,50% the first three years of the loan
- – 0,25% the fourth, fifth and sixth years
- – 0,00% from the sixth year onwards