Can I repay my loan early? What penalties apply?

Can I repay whenever I want?

Yes. Banks must accept early repayment, in part or in full. You can repay any amount you like.

The bank may require you to do it on a repayment date. It may also ask for notice:

• at least 7 business days, to repay part of the loan;
• at least 10 business days, to repay the whole loan.

After your request, the bank must tell you in writing what the repayment will do to your loan.

How much can the fee be?

The maximum depends on the type of rate:

• on a variable rate, up to 0.5% of the amount you repay;
• on a fixed rate, up to 2% of the amount you repay.

With a mixed rate, what counts is the type of rate in force on the day you repay. Your contract may set a lower fee, or none.

There is no fee if the reason is the death, unemployment or work relocation of a loan holder.

Are there other costs?

If you repay the whole loan, the bank may charge interest up to the day you pay. It cannot charge interest for the time that was still left.

It may also ask for expenses it paid for you to registries, notaries or the tax authority. It must show the receipts.

Once everything is paid, the bank has 14 business days to give you the release statement («distrate»). There is no fee for this statement.

Is the fee still suspended?

No. Between 2022 and 2025, the fee was suspended on variable rates, for the home you live in. The last extension, by Law No 1/2025, ran until 31 December 2025.

Today the limits of 0.5% and 2% apply.

Does my repayment or my term go down?

As a rule, a partial repayment lowers your monthly repayment and your total interest. The term stays the same.

If you would rather shorten the term, you must ask the bank. That is a renegotiation and needs both of you to agree.

An example with the sums

You owe €150,000 at 3%, with 25 years left to pay. You repay €10,000.

Your repayment falls from €711 to €664 a month. By the end, you pay about €4,226 less interest.

On a variable rate, the fee is at most €50 (0.5% of €10,000). On a fixed rate, it can reach €200 (2%). These are example figures, with the rate unchanged to the end.

Before you repay, compare with what the money would earn. See the guide Repay the mortgage early or keep money in the account?

Where do I find the rules for my loan?

In the ESIS, in the «Early repayment» section. They are also in your contract. In the mortgage repayment calculator you can see the repayment for a different amount.

Where FINOVA helps

If the aim is to pay less, we also check whether a transfer pays off. See Can I transfer my mortgage to another bank? Our fee is paid by the bank.

Sources

• Banco de Portugal — Home loans: can I repay part or all of my loan early? (in Portuguese)
• Banco de Portugal — How to repay and transfer
• Banco de Portugal — Early repayment fee stays suspended until the end of 2025 (in Portuguese)
• Banco de Portugal — Rights and duties when taking out loans

Sources checked on 22 September 2026.