What is direct amortization?

Purchase

If you take out a mortgage to finance the purchase of your property, you will have to pay it back.

Direct amortization allows you to make this repayment on a regular basis through direct payments into the lender's account. 

 

 

What are the advantages and disadvantages of direct amortization?

 

The advantage of direct amortization is that it reduces your debt and therefore also reduces the interest. However, the interest is fully tax deductible. So if the interest burden is reduced, then an increase in the tax burden is to be expected.

 

Sell my property

By Charline Demange, July 25, 2023

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