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-   -   Repayment mortgage (https://www.englishforum.ch/housing-general/62480-repayment-mortgage.html)

Alirezakarimi 23.09.2009 12:06

Repayment mortgage
 
Hello,

I just was wondering that whether there is something like Wikipedia reference-linkRepayment mortgage in Switzerland or not .

Or, is the following statement correct : In Switzerland, you get a mortgage and pay monthly just the interest rate, and at the end your mortgage term (1 to 15 years), you still owe the bank the full amount of mortgage .

23.09.2009 12:10

Re: Repayment mortgage
 
Quote:

Originally Posted by Alirezakarimi (Post 557470)
Or, is the following statement correct : In Switzerland, you get a mortgage and pay monthly just the interest rate, and at the end your mortgage term (1 to 15 years), you still owe the bank the full amount of mortgage.

Yes, if that's the option you choose..

CH_Me 23.09.2009 12:21

Re: Repayment mortgage
 
The banks normally have 2 mortgages - one at around 66% of the value that you pay interest only, and another mortgage for the remainder that you need to repay, depending on the banks rules, by something like your 60th birthday. By making indirect repayments through a bank pledged 3rd pillar you essentially end up with the same loan balance each year.

The benefits to never repaying your loan are reduced asset taxes. A low mortgage interest rate also means you can invest your money elsewhere where you get a better return. For example, I get twice the amount of interest on a term deposit in pounds than I pay on my mortgage here and I pay almost 5x the amount of interest on my UK mortgage than my Swiss mortgage.

justimmo 24.09.2009 17:44

Re: Repayment mortgage
 
Depends on your loan condition.

If libor, then no exit fees. as you assume fluctuations on libor.

If fixed rate... then they are exit fees. They are calculate by the bank depending on how long your contract is still running and how much the bank is loosing (not winning) on the operation. IT IS NEGOCIALBE.... if you bring the buyer back to the same bank for exemple.. or you can swap mortgage also. Comparis offer a good service for this.

steve

dakman 24.09.2009 17:57

Re: Repayment mortgage
 
Quote:

Originally Posted by MarieZug (Post 557491)
The benefits to never repaying your loan are reduced asset taxes. A low mortgage interest rate also means you can invest your money elsewhere where you get a better return. For example, I get twice the amount of interest on a term deposit in pounds than I pay on my mortgage here and I pay almost 5x the amount of interest on my UK mortgage than my Swiss mortgage.

Not really, if you are investing the money elsewhere rather than just spending it.


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