Various media have recently published reports and commentaries in response to the introduction of new Dutch regulations on charging clients a fee (penalty interest) for making extra payments on, or for early repayment of, their mortgage loans.
ABN AMRO does not seek to profit from clients who make extra payments on or who repay their mortgages before the end of their term. We only charge the costs that the bank incurs due to the client redeeming the loan sooner than agreed. This is often referred to as ‘penalty interest’. More information on early repayment of mortgage loans is available at this ABN AMRO website (in Dutch only).
If an ABN AMRO client wants to repay their mortgage early and is therefore charged a fee, the client will always be provided with a summary of the fee with a clear calculation for each separate part of the loan. The conditions and calculation method are available on the ABN AMRO website. Click here to see a sample calculation.