| Morgage Terms
We need to renew our morgage/s in the next few days. Morgage rates are very low at the moment and it would seem wise to go for a fixed term contract.
I have, however, also been tolds that it might be worthwhile, from a tax liability perspective, to pay off a mortgage from 2012 onwards. It seems that a a referendum next year might eliminate the current requirement to pay tax on the notional rental value of a property(Eigenmietwert), as has hitherto been the case, and that morgage payments would then no longer be tax-deductible. Should this happen we would probably be better off not having a morgage. This seems to be the strongest argument against going for a longer-term fixed term morgage.
Very long term morgages (8 or 10 yrs) are, of course, also relatively expensive.
I would greatly welcome any comments and (subjective, non-professional) advice about whether to go for a fixed-term,and if so, for how long, since I have to decide extremely urgently.
Cheers,
Franklyn
Last edited by vwild1; 28.07.2010 at 17:13.
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