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Old 04.07.2011, 22:28
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tax interest for a pret hypotecaire

Hello,

I got a mortgage of 600 000 CHF for an appartment, and it is only 15% of the capital, bank already approved it.

- If I can, does it make sense to reduce such debt to 400 000 CHF in 2 years time to pay less interests but also keep the debt of 400k with the bank to reduce my taxable income? What is the percentage of mortgage to keep to pay less taxes? 50%? 60%?

- How is better to reduce the debt? by putting money directly every 2 years in one big shot or by "ammortize" it 2, 3% on a monthly basis in a 2 years time?

- What about 200k at 6 years, 200k at 2 years and 200k at LIBOR 0.95%? sounds good or better half fixed at 6 years 2.28% and half at LIBOR?

- If i am jobless when the mortgage expires, will I be able to get a new mortgage if I am jobless?

Is really a big variable this LIBOR or do we predict the same for the next 24 months?

Thanks for all your answers.

i would need to make a decision in the next few days..
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Old 04.07.2011, 23:50
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Re: tax interest for a pret hypotecaire

Anyway, all the above questions can be recapitualted in just one:

The perfect mortgage is the one for me that is equal to the Tax I would pay if I would owe the house in toto.

So the house is costs 669k CHF, i am single/no children.
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Old 05.07.2011, 00:13
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Re: tax interest for a pret hypotecaire

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Anyway, all the above questions can be recapitualted in just one:

The perfect mortgage is the one for me that is equal to the Tax I would pay if I would owe the house in toto.

So the house is costs 669k CHF, i am single/no children.

Tax in CH is quite low so to save 1000chf of tax you might have to spend 5000chf on interest. That is hardly a fantastic deal IMHO. If you want to pay for ever & ever why not just rent?
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