You Don't Need to Justify Yourself: Early Loan Repayment Explained
You don't need to justify yourself. If you have more money than expected, you can repay your loan earlier, in full or in part. The lender cannot refuse. A loan can always be repaid early, which terminates the contract with the lending institution. However, you may need to pay a penalty or indemnity for early repayment.
According to Hatem Ghozzi, an accountant and teacher at IHEC, each bank can have its own rules. Generally, there is a discussion beforehand about early repayment. Sometimes, the lender may accept that the borrower does not pay future interest, but they must pay a fine of 1% to 1.5% of the remaining amount owed (excluding interest). This fine is indicated in the contract, in the section on early repayment. Many people are not aware of this rule, but it is possible to negotiate.
"For consumer credits, mortgage loans..., these are standard credits that the bank generally does not negotiate. Negotiation occurs for large loans," he concludes.