My wife's brother has a small home loan over 10yrs with SCB and wants to pay it off early. He thinks he was told there is a 3% early repayment fee if it is paid in full in the first 3 years so wants to wait another year as the loan was only taken out last year but I'm sure the fee is only applicable if the loan is paid off by way of re-financing and not if selling the house and using the cash to pay off the loan, is that correct?

I'm sure I read on here that the BOT confirmed that early repayment fees are only valid if re-financing but have used the search function and not found anything, anyone have experience of this?

Thanks

It should be in the contract.

It should be in the contract.

It is stated in the contract, it says it is subject to a 3% early repayment fee but I'm sure I read a recent ruling by the BOT that states the fee is only applicable if the loan is paid off by re-financing with another bank. So therefore if someone pays off the loan with their own money or from selling the house it shouldn't be applicable.

pay the loan off before 3 years ,pay 3%.done this a couple times.doesn't matter pay the loan early 3%

pay the loan off before 3 years ,pay 3%.done this a couple times.doesn't matter pay the loan early 3%

I believe that the 3% fee was payable regardless of how it was paid but, as I said, I seem to remember last year the BOT saying that the fee shouldn't be applied if the house is sold or paid cash by the owner, only if re-financing. I have emailed the BOT so will update if/when I get a reply.

I was reading the SCB website the other day about mortgage finance and I'm pretty sure it stated in there that the fee was only paid in the event of refinancing. This, of course, may only be a recent amendment and old loans may be subject to the fee irrespective of the source of the early repayment.