Repaying your mortgage
Making extra mortgage repayments
If you have extra savings, inherited money or received a monetary gift, you may want to put these funds towards your mortgage by making an extra repayment in addition to your agreed monthly mortgage payment. Find out beforehand whether making extra repayments is the right option for you.
Self-service
Most interest-only, savings-linked or unit-linked mortgages allow you to repay 10% of the principal every year. Just go to Internet Banking or use the ABN AMRO app to make the repayment. Your new monthly mortgage payment and outstanding principal will be shown instantly. If you’re unsure whether an extra repayment is the right option for you, you can use the repayment calculator to find out more.
Benefits and drawbacks of additional repayments
Benefits of additional repayments
- Your mortgage loan amount will decrease
- The monthly payment will generally be lower
- In some cases, your interest rate will be lower as you move to a lower tariff class
- Fee-free additional mortgage repayments every year
- Reduces the risk of a mortgage shortfall
Drawbacks of additional repayments
- Less mortgage interest deduction
- Less money to spend, less savings
- Additional repayments may be subject to a fee
- If your mortgage is linked to a savings account or insurance policy, additional repayments may negatively affect your net monthly mortgage costs
- May lead to you losing the right to profit from tax-related interest deduction for specific mortgages types
- Making additional mortgage repayments may give tax consequences. Whether or not additional mortgage repayments are an interesting option for you depends on your personal situation
How often do you wish to make additional repayments?
Additional repayments
- Make repayments when it suits you
- You will get instant confirmation of your new monthly payment
- Lower your mortgage debt
Additional monthly repayments
- Change or cancel at any time
- From as little as €25 a month
- Lower your mortgage debt
Frequently asked questions about repaying your mortgage
How often can I make additional repayments?
You can make additional repayments for multiple mortgage loan parts. First of all, enter your additional repayment for loan part 1 on Internet Banking. Do not confirm the transaction at this stage. Next, enter the additional repayment for loan part 2 and any other loan parts if applicable. You can then confirm all of the additional repayments in one go on Internet Banking.
You can make a new additional repayment for 1 or more mortgage loan parts from the 5th working day of the following month.
Can I make an extra repayment on my savings-linked or bank savings mortgage?
You can choose to pay extra into your savings account or the insurance policy that’s linked to your mortgage. This will help you reach the total amount earlier, which may allow you to repay your mortgage sooner. Please remember that tax rules apply to paying extra into a savings account or an insurance policy. We recommend that you seek professional advice before you decide to avail yourself of this option.
Do you require the consent of both myself and my partner?v
We don’t require your partner’s consent if no fee is due for the extra repayment. We do require their consent if a fee is due. This task will be listed in your partner’s task list in Internet Banking.
I don’t see my extra repayment. What happened to it?
If you signed your instruction in Internet Banking by 11:59 p.m. on the 26th of the month, the new outstanding principal and monthly mortgage payment will be shown on the first business day of the following month. If you signed the instruction later, your new outstanding principal and monthly mortgage payment will be shown the first business day of the following month. We will of course refund any interest that we’ve overcharged you in the intervening period. The extra repayment will be debited from your account instantly. We will confirm the debit via your Bankmail.
What’s the procedure if I want to make a repayment of more than 10%?
If you want to repay more than 10% of the original principal for a loan part in a single year, you may be charged a fee (previously known as ‘penalty interest’). Your mortgage terms and conditions tell you how much you can repay each year without being charged a fee.
Can I make extra repayments on more than one loan?
Yes, you can. You can check the impact of an additional repayment on each loan part and then approve the transaction. After making the first additional repayment, you can make a new additional repayment for a subsequent loan part. The first additional repayment will be added to your task list. You then need to sign for all of the additional repayments in one go. You cannot approve the first additional repayment one day and then the second the next day, for instance.
What are other ways to lower my mortgage payments?
Besides making an additional payment there are other alternatives to lower your monthly mortgage payments. Such as refinancing with interest averaging or a lower risk surcharge.