You may want to make lump sum payments (or prepayments) during the tenure of the housing loan. You must inform the bank in advance before you make such payment.

Banks may impose penalties or fees when you:

• Make a prepayment without giving advance notice
• Settle the outstanding loan in full before the expiry of certain period commonly known as the “lock-in period” or “prepayment period”
• Make a prepayment during the lock-in period which results in the outstanding principal falling below a stipulated minimum balance
• Make a prepayment as per penalty terms stated in the housing loan agreement

Check the terms and conditions of the housing loan or check with the bank about its prepayment rules:

• Before taking a loan
• Whenever you wish to make a prepayment if you already have a loan

It is worthwhile to note that banks typically require a minimum prepayment amount with each partial prepayment request, generally starting from $10,000 and multiples of $1,000.