Change repayment during term at Sparkasse, Volksbank & ING

If your financial situation changes, a modified amortization allows you to reduce the monthly installment of the Credits to the new situation. One also speaks of the Repayment rate changeif the repayment is to be changed during the term. The right to change the repayment during the term must be agreed in the loan agreement. It is common to change the repayment between a minimum and maximum repayment rate. Some banks allow the repayment rate to be changed free of charge. Usually, however, there are restrictions on how often you can change the repayment rate during the term of the loan. Common phrases that allow you to adjust the repayment rate are Once a year (e.g. savings bank) or twice during the fixed interest period (e.g. ING) allow this free of charge. Other providers charge an additional fee for changing the repayment during the term. With a Framework loan and the Securities Loan on the other hand, the adjustment of the repayment is usually free of charge without limitation.

What you can learn here

Repayment change during the term of a loan
Advantages and disadvantages of changing the repayment during the term
- Advantages of changing the repayment during the term
- Disadvantages of changing the repayment during the term
Conclusion: Change redemption during the term

Repayment change during the term of a loan

Repayment rate change at the savings bank

A free adjustment of the repayment Once a year is common practice at many savings banks. The repayment rate change is possible in the corridor of 2 % up to 5 % per year for many contracts of the savings banks. In addition individual agreements on the redemption rate change can be made at many savings banks. For example, you can contractually exclude changing the repayment and ask for a lower interest rate in return.

The change of redemption is made at the Savings Bank via a letter with signature.

Repayment rate change at Volksbank

Changing the repayment during the term is possible at many credit unions. 3 times free of charge within the term. At the Volksbanks in Bavaria, the change in the repayment rate is called Munich freedom. The repayment rate change is possible at many Volksbanks in the corridor of 2 % up to 5 % per year. The repayment rate change has the name Münchener Freiheit at some Bavarian Volksbanks. It is an integrated component of real estate financing at the Volksbank. However, an individual cancellation of the repayment rate is possible. For this, you should request a reduction of the interest rate.

Further building blocks of the construction financing of Volksbank are the Münchener Durchläufer, the Münchener Reserve and the Münchener Forward.

The change of redemption is made at the credit union via a letter with signature.

Repayment rate change at ING

The repayment can be adjusted free of charge at ING during the fixed-interest period. twice possible. At the same time, very flexible repayment rates of 1 % to 10 % p.a. are possible with ING. With ING, changing the repayment rate is much easier than with the savings bank, which still uses cumbersome paper letters.

In the ING*, on the other hand, you can simply change the repayment during the term in Internet banking under "My mortgage". Under the same menu item, you can also create a new repayment plan directly after the change. This way, you know what the new rate will mean for you.

The change of the redemption is done conveniently at ING via online banking.

However, ING is not only convincing when it comes to changing the repayment rate. For example, the bank also lands in the Construction financing comparison has already been in the top positions for many years. In addition, with the construction financing ING always has attractive offers with reduced promotional interest rates. You can choose via this link check if there is currently a short-term promotion available.

Repayment rate change at Commerzbank

Commerzbank does not include a repayment rate change in its contracts as standard. Nevertheless, Commerzbank also offers the option of changing the repayment rate again during the term of the loan. However, a prerequisite for changing the repayment rate at Commerzbank is that a corresponding agreement was made when the loan agreement was concluded.

Advantages and disadvantages When changing the redemption during the term

advantages

Remain flexible in the event of changes in life circumstances (e.g. child, death, marriage)
The additional costs are low
Some banks have already included a change of the repayment during the term in their standard contracts.

Disadvantages

There may be additional costs (ask for better conditions if the repayment rate change can be omitted)
The additional costs can be hidden in the interest rate and are not directly obvious at every bank.

advantages When changing the redemption during the term

If money is tight due to changed circumstances (e.g., offspring, death, marriage), the loan can still be afforded with the repayment rate change. On the other hand, if you are doing better financially, you can also change the amortization upward during the term. Therefore, by being able to change the repayment during the term, you remain flexible. Alternatives to changing the repayment rate are unscheduled repayments or a temporary suspension of repayment.

Disadvantages When changing the redemption during the term

The disadvantages of the more flexible loan with adjustable interest rate are, on the one hand, the increased effort at the bank. For example, changing the repayment at some branch banks (e.g., Sparkasse) is still only possible manually by letter. On the other hand, the flexibility means that the bank now has to find ways to invest the money elsewhere after an unplanned repayment.

Both of these reasons mean that loans where you can change the repayment during the term are usually Slightly more expensive are. Some banks charge the costs with the interest rate, while others show them explicitly.

Conclusion: Change redemption during the term

The right to change the repayment rate during the term of the loan gives you flexibility. Some banks such as Sparkasse, Volksbanken and ING allow you to change the repayment rate free of charge. However, there are usually restrictions on how often you can change the repayment during the term of the loan. If you make individual agreements with the bank on this, you should ask for a reduction in the interest rate in exchange for the loss of the right to the Repayment rate change ask. If, on the other hand, you have secured the right to change the repayment during the term, the next thing you should do is find out what happens at the signed loan agreement still go wrong can.

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Disclaimer: This is well researched but non-binding information.