Can I repay my loan early? What penalties apply?
You can repay the loan, in full or in part, at any time, giving the bank seven business days' notice. The maximum fee is 0.5% on a variable rate and 2% on a fixed rate.
In this guide
You can repay whenever you want
You have the right to repay your mortgage, in whole or in part, at any time, as long as you give the bank at least seven business days' notice. Cutting the capital lowers the interest and often shortens the term.
The fees, by rate type
The maximum early-repayment fee is 0.5% of the capital repaid on variable-rate contracts, and 2% on fixed-rate ones. On a mixed rate, the rule of the phase you are in applies — fixed or variable.
The suspension to confirm
For an own permanent home on a variable rate, this fee was suspended by a measure in force since 2022, extended by Law 1/2025 to the end of 2025. As these measures are reviewed, confirm whether the suspension still applies at the time you intend to repay.
Worked example
On €100,000 you decide to repay (example figures): on a variable rate, the maximum fee is €500 (0.5%); on a fixed rate, €2,000 (2%); on a mixed rate, it depends on the phase you are in. On a variable rate for an own home, the fee may be suspended — and so be zero. We confirm the rule in force before going ahead.
Sources
Susana Vasconcelos
- Intermediária de crédito autorizada pelo Banco de Portugal n.º 0008496
- Mais de 10 anos na banca