Mortgage amortisation
In one sentence
The duty to bring the debt down to two thirds of the property value within fifteen years.
What it changes for you
This compulsory portion is called the second mortgage. Amortisation can be direct — the debt falls each year — or indirect, through a pledged pillar 3a that repays at term. Direct reduces interest; indirect preserves both the interest deduction and the 3a deduction. The right choice depends on your marginal tax rate, not on a general rule.
Read next
- AffordabilityThe bank’s test: your theoretical housing costs must not exceed a third of gross income.
- Own fundsThe 20 % of the price you must contribute, of which at least 10 % from outside the second pillar.
- Pillar 3aTied retirement savings: deductible from taxable income, locked until retirement with exceptions.