Calculate your Early Repayment Penalty
Estimate the early repayment penalty (IRA) on your mortgage for a full or partial repayment, based on the legal cap and exemption cases.
How is the early repayment penalty calculated?
The early repayment penalty (IRA) is the amount a bank may claim when you repay your mortgage before its term. Its amount is strictly capped by law.
Why calculate your penalty before repaying?
- Check that early repayment is still worthwhile
- Compare the penalty to the interest you save
- Anticipate the exact cost of a refinance or resale
- Find out whether you qualify for an exemption
- Negotiate the removal of the penalty with your bank
How is the penalty capped?
The Consumer Code (articles L313-47 and R313-25) caps the penalty at the lower of six months of interest on the repaid capital at the loan's average rate, and 3% of the outstanding capital before repayment. No penalty is due in the event of a sale following a job relocation, death, or forced cessation of activity (article L313-48).
Frequently asked questions about early repayment
Everything about the penalty on your mortgage