Is a mortgage with a fixed interest rate cancellable after 10 years?

Mortgage with fixed interest rate cancellable?

Hello everyone!

My banker told me that I could fix an interest rate for 30 years today. The interest rate would then be guaranteed for 30 years!

According to the Building Code, it would be possible to cancel contracts that are concluded for longer than 10 years annually thereafter - in case the interest rates are still cheaper after 10 years, I can cancel the contract and continue financing with another bank. It should also be possible to make special repayments year by year starting from the 10th year.

Now my question:
Is this really possible? Or what do you think about it? In which § of the Building Code is this regulated?

Regards Derrek

Hello Derrek,

that is correct. According to § 489 of the Building Code, you as the borrower have a right of termination after 10 years (after full disbursement of the loan), with a notice period of 6 months.

However, special repayments are not automatically possible. These must be agreed upon and fixed in the loan agreement. If this is not specified there, special repayments will later lead to a prepayment penalty!

Best regards

M. Thiemann