Anyone who takes out a mortgage should also deal with the amortization. Should the loan be held until the end and then refinanced? Or should the debt be repaid during the contract? Repayment is usually mandatory abroad. Switzerland gives the debtor more leeway. With one exception: second mortgages.
They are taken out when the legally stipulated lending limit of two thirds of the market value of the property is exceeded. Then a second mortgage can be taken out in addition to the main one. With this, the repayment is mandatory: In fifteen years or until reaching the age of 65 these debts must be paid off.
Weigh the pros and cons
And what about the main mortgage? There are good reasons why you should – voluntarily – amortize it. The monthly interest costs are reduced. You become debt free and are therefore financially independent. Instead of owing money to the bank, you finally become the de facto owner of your own home. A good feeling that everyone can wish for.
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