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Old 15.03.2021, 15:52
spark spark is offline
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Re: Clarification on Mortgages

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I think this is incorrect. It's 35% has to be paid off within 17 years (not 100% sure on the exact number). But I guess it's probably whichever comes first (65 years vs. 17 years from day of mortgage).

Incorrect. The exact FINMA rule is:

"Die Hypothekarschuld ist innert maximal 15 Jahren auf 2/3 des Belehnungswertesder Liegenschaft zu amortisieren. Diese Amortisation hat linear zu erfolgen, beginnend spätestens 12 Monatenach der Auszahlung."

The bank will evaluate this rule once at the start of your mortgage contract and set amortization amount such that if it you were to pay it for 15 years, you'd end up at 2/3 of bank's valuation of the property. Which can very well be below what you bought it for.
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