General Information

Repayment and Optimizing Taxes

With a typical mortgage, you repay a part of your mortgage in equal amounts, usually on an annual basis. With the right strategy, you can benefit from attractive tax advantages.

What you need to know about repaying your mortgage.



Direct Repayment

With direct repayment, you repay the mortgage in regular payments to the bank. In doing so, the mortgage debt decreases continually, as does the expense for mortgage interest. However, the tax burden increases at the same time as the tax deductions decrease.


Indirect Repayment

With indirect repayment, you pay the installments to a Pillar 3a pension account or pension securities account or to a life insurance. These payments are only used to amortize the mortgage debt after liquidation of the Pillar 3a account.

With indirect repayment, the mortgage remains at the same level for the entire term. In this way, you benefit from tax deductions that remain constant over the entire term (as long as the interest rate remains the same). In contrast to direct repayment, the tax burden does not increase.

Direct repayment / Indirect repayment

Choose the Right Solution with Expert Advice

Both direct repayment and indirect repayment have advantages and disadvantages. The method that is right for you depends on your personal situation and your financial options. Our financing experts will be happy to help you find the best solution for you.

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