Loan termination after 10 years: Section 489 BGB

Special termination of property loans explained: the 10-year rule according to Section 489 BGB, notice periods, and how to avoid early repayment fees.

FAQ

Does the 10-year rule also apply to banks?

No, this is a one-sided right for the consumer. The bank is bound to the fixed interest rate for the entire agreed term.

What happens if I terminate and cannot pay back?

The termination becomes ineffective if the remaining debt is not paid back within two weeks after the notice period expires (Section 489 (3) BGB).