Glossary

Use our Glossary to understand the different German mortgage terms and definitions

Sondertilgung

Additional Overpayments

Most banks have included in their credit terms that the borrower can make an annual, optional unscheduled repayment of 5% of the original loan amount. Some banks even allow 10% unscheduled repayment. These unscheduled repayments do not lead to a reduction in the monthly loan installment, but to the loan being repaid earlier.