Compare the costs of an early mortgage repayment
Obtain the bank's dated balance, interest, charges and rebate-return terms before comparing early repayment with cash needs.
Obtain figures for the intended date
Outstanding principal, accrued interest and early-repayment charges are different entries. Use the bank's figures for the intended date and distinguish full from partial repayment rules.
A scenario can compare payments or term before and after repayment, while actual charges, rebate returns and notice requirements come from the bank's terms. Review the remaining cash against other known payments.
Separate repayment costs and available funds
Keep the date to which the bank's figures apply.
| Item | Record | Follow-up |
|---|---|---|
| Balance | Principal and applicable date | Confirm with the bank |
| Charges | Interest and applicable charges | Distinguish partial and full repayment |
| Rebate | Any required return | List separately |
| Cash | Remaining funds and scheduled spending | Check timing gaps |
Illustration: include both charges
Hypothetical HK$5,000 repayment charges and a HK$10,000 rebate return total HK$15,000 between those entries. Actual costs and interest savings require the bank's figures and the chosen scenario.
Keep the full comparison
- Figures have an applicable date
- Rebates and fees are not omitted
- Remaining cash is reviewed separately