Contract anniversary (výročí smlouvy)
The date on which the loan agreement was concluded, recurring every year. Under § 117(3) of Act No. 257/2016 Coll. (from 1 September 2024) the client may repay up to 25 % of the total loan amount a year free of charge within 1 month before the anniversary; the total loan amount is the sum originally granted, not the balance. Outside this window and the other statutory exceptions the bank may charge up to 1 %.
Example
An agreement for CZK 4,000,000 over 25 years at 5.00 % was signed on 31 March. In March of the sixth year, the month before the anniversary, the balance is about CZK 3,543,000, and the client sends an extra payment of CZK 300,000 while keeping the instalment unchanged, which shortens the term. He saves roughly CZK 460,000 in interest and is mortgage-free 2 years and 8 months sooner, without paying any fee.
In practice
Banks usually want an extra payment announced in advance, often 30 days ahead, and the money has to arrive within the month before the anniversary date. What counts is the date the contract was concluded, not the drawdown date; you will find it on the first page of the contract. A payment that lands after the anniversary, or more than a month before it, is treated as chargeable. When you notify the bank, say whether you want a lower instalment or a shorter term.
How it differs
The anniversary is easily mistaken for the end of the fixed period, when any amount can be repaid free of charge; on the anniversary the free limit is 25 % of the loan amount a year. Unlike re-fixing, the anniversary leaves the interest rate alone and simply opens a window for a free extra payment.
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