Interest rate risk compensation

In the case the full or partial repayment, with or without subrogation, of mortgage loans or credit arranged later than 9 December 2007, provided the repayment does not take place within an interest revision period with a duration of 12 months or less, compensation for interest rate risk will be as stated in the agreement and will depend on whether the redemption results in a capital gain or loss for the bank.

  • If redemption takes place during the initial fixed-rate period, compensation may only be charged if there are more than 12 months left until the first revision period.
  • If redemption takes place within a repricing period of up to 12 months, no compensation may be charged. It may only be charged if the repricing period is longer than 12 months, regardless of the redemption date.
  • If the bank makes a capital gain, no compensation may be charged. The bank is considered to have made a capital gain from its interest rate risk exposure if there is a positive difference between the outstanding capital at the time of early redemption and the market value of the loan or credit.
  • If the bank makes a capital loss and the interest revision period is more than one year, the compensation will consist of either a percentage applied to the outstanding capital at the time of the cancellation, as stated in the terms and conditions, or the amount of capital loss.
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