Can I repay my loan earlier than agreed?

Yes, secured and homeowner loans can be repaid earlier than initially agreed. Early repayment is where you clear your debt before you were legally obliged to and can be done if you have the funds to cover the rest of your existing loan.

It is important, however, to note that some lenders charge penalties for repaying loans early. This is to ensure that the interest they would have collected is not completely gone due to early repayment.

Some lenders we work with have an early settlement charge which is approximately 2 months’ interest on the outstanding balance of the loan. Before opting to pay your loan off early, consider the costs and decide whether it is worth it or not. This will depend on how much time you have left on your loan and how much the overall loan is worth. Each lender is different, and if you think you will be able to pay your loan off early it could be beneficial to opt for one without an early repayment fee. Please check the mortgage documentation for exact early repayment conditions.