Contract signing date: 10 October 2019
Original loan amount: CZK 2,709,000
Interest rate: 2.82% p.a.
End of fixed-rate period: 20 May 2030
Date of premature loan pay-off: 30 July 2021
Prepayment amount: CZK 2,500,000
Your loan was to bear an interest rate of 2.82% p.a. until the end of its fixed-rate period (until 20 May 2030). We would have earned a total of CZK 556,047.83 in interest if your mortgage had been duly repaid according to the agreed repayment schedule.
If you prepay CZK 2,500,000 of your loan by 30 July 2021, we will be able to lend this amount out as another mortgage until the end of your original fixed-rate period (until 20 May 2030, i.e., for approximately 8 years) at an interest rate of only 2.69% p.a. (this is the rate we usually and demonstrably offer for mortgages with a fixed-rate period of 7 years at the time of processing your prepayment request). Over such a period of time, we could earn a total of CZK 530,429.43 in interest.
The amount of CZK 25,618.40 is then the difference between the interest we would have earned on your mortgage if you had repaid it over the whole of your fixed-rate period and the interest we could earn by re-lending your prepaid amount until the end of your fixed-rate period.
This amount is therefore our financial cost, which we are entitled to claim under the Consumer Credit Act.
If we take into account the time value of money (which, simply put, means that an amount received now is worth more than the same amount received later in the future), then the difference is CZK 23,778.12.