Buying a house is one of the most important economic transactions in a person’s life. Purchase proposal, preliminary contract, deposit, mortgage, deed … many operations, rules, checks, documents, commitments, types of purchase. From the very first step, it is advisable to have a notary by your side, so that he can protect you and advise you on how to carry out the entire process in total safety.
Under the terms of a “mortgage loan” (loan for the purchase or renovation of a dwelling), the law gives the borrower the right to repay all or part of the loan early, returning the capital without having to pay interest for the unused time.
Currently loans granted by financial institutions, banks and compulsory social security funds (INAIL, INPS, etc.) to buy or renovate properties used as a dwelling or for the conduct of a physical person’s business or profession, can no longer be encumbered by fees or penalties in the event of early termination.
If the borrower has to pay off a mortgage contract made prior to February 2007 in which a penalty was stipulated for termination, he may request and obtain from the bank a discount on this penalty according to parameters established by law.
Where there is in any case a penalty for early repayment, the contract must specify the amount and clarify the formula used in its calculation.