Our expert tells you what to consider when terminating a fixed-rate mortgage early.
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Happy compensation, relaxed interest rate forecast: homeowners currently have no reason to rush.
Illustration: Christina Baeriswyl
I find the prospect of a fixed-rate mortgage of less than 0.5 percent over five to eight years very interesting. Our previous fixed-rate mortgage with an interest rate of 2 percent for ten years will expire in October 2023. What advice would you give us regarding the early termination of the previous mortgage of 300’000 francs? Is it worth canceling this and paying the early repayment premium? What would the tax effect look like? We are married and have two children. Readers question from TD
In fact, interest rates are currently at an extremely low level. The current second corona wave with the many economic uncertainties ensures that interest rates remain at the historically low level. Because of the steep rise in contagions in Europe and the associated major economic risks, the European Central Bank has signaled that it could undertake further monetary policy easing in December. This always has consequences for us in Switzerland, because the Swiss National Bank is heavily dependent on the monetary policy of Europeans because of the franc / euro ratio.
