Special repayment - How often can you do it? What percentage?

At PSD Bank, you can make an unlimited number of special repayments within the agreed special repayment framework (e.g., 5% of the loan amount per year), i.e., every month, for example, a fixed or varying amount in addition to the regular installment. You can also set your installment, for example, lower than affordable and then make an additional special repayment via standing order, which you can adjust or skip at any time without any cost. This way, you have—as I think—the highest possible flexibility in this regard. Of course, it requires a certain amount of discipline, otherwise the loan will run longer than planned.

For me, the surcharge for 10% instead of 5% Sondertilgung in the financing of my apartment in 2012 was exactly 0.1%. I was basically allowed to make Sondertilgung whenever and as often as I wanted until the 10% was reached, but was kindly advised that it shouldn't necessarily be small amounts of 100 EUR each.

A good friend, on the other hand, has a really crappy rule. He is only allowed to make Sondertilgung exactly once a year, and it must definitely be in the second-to-last week of March. I find that very poor.

The home financing is through a different bank than the one for the apartment back then. We are basically allowed to make Sondertilgung again whenever and as often as we want until this time 5% is reached.

So, it seems that there are very different regulations.

At Ing-Diba we are allowed to make a 5% special repayment annually. However, the special repayment must be at least 1250 euros, and can be made as often as desired (up to the 5% limit).

Regards
Sabine