Whether a mortgage amortization makes sense also depends on whether you have gaps in your retirement provision.
Posted today at 4:45 am—
Provision, deposit and needs: Before repaying a mortgage, it is important to analyze the situation.
Illustration: Christina Baeriswyl
My wife and I are both employed, 50 years old and childless. Our mortgage is 670’000 francs with 350’000 francs of own funds and will expire in June 2022. What would you advise us: amortize or not? If so, how much would you amortize? What term would you recommend us for the new mortgage? Readers question from MB
You can do a simple calculation for yourself: With around one percent interest, the mortgage costs you 6700 francs per year. On the one hand, this is little, since interest rates are historically low. Yet it is money that flows away. You could also put that money aside for retirement or have a nice vacation. In my opinion, loans should only be taken out if necessary.
