The early repayment of loans directly leads to the reduction of bank interest income. In the case that banks lack investment channels and mainly rely on deposit and loan spreads to obtain profits, repaying loans in advance disrupts the bank's fund use plan. With more and more cases of prepayment, the manpower and material resources paid by banks are also increasing, and banks should charge a certain fee to compensate the losses appropriately.

Liquidated damages for early repayment of mortgage loans cannot be reduced or exempted. After all, for the bank, if the user has gone through the formalities of prepayment of the mortgage, it means that the interest paid by the user to the bank has been completed, and the bank will make up for this loss by collecting liquidated damages. If the user wants not to pay the liquidated damages for repaying the mortgage in advance, the only solution is to postpone the mortgage repayment. After all, there is no need to pay liquidated damages for applying for early repayment after one year of mortgage repayment.