What is indirect amortization?

Purchase

When repaying your mortgage, you have two options: direct or indirect amortization.

If you opt for indirect amortization, the repayment amount is not paid into the account of the lending institution but into a third pillar, which may be a bank account or an insurance product.

 

 

What are the advantages and disadvantages of indirect amortization?

 

 

With indirect amortization, the amount of debt and mortgage interest remains unchanged. Thus, the amount of mortgage interest remains stable and significant and can be deducted from taxes.

 

In addition, the amount of the third pillar payment is also tax deductible up to the maximum allowed per year. The amount saved must be paid to the lending institution by the agreed due date at the latest and is subject to a separate, specific tax.

By Charline Demange, September 20, 2022

Can't find the answer you're looking for?

Do not hesitate to contact us!

Noa Bechtiger

Noa speaks Deutsch and English, chat with her online:

Do you have a broader question about real-estate?

We have asked our brokers to share their expertise with you; visit our blog where you will find everything you are looking for!

Check out our latest blog posts
How much is your property worth?

Appraise your property online in 2 minutes.
Free of charge, no strings attached.

Appraise my property for free
What is your purchasing capacity?

Wondering how much you can afford to spend on your dream property? Give a try to our easy calculator.

Calculate my purchasing capacity

Meet our local experts

Neho Local agent doing a real estate valuation

Benefit from a 15-minute consultation with one of our experts.

Free. No strings attached.
Book directly online.
Photo of the real estate agent: Barbara Bordogna
Photo of the real estate agent: Angelo Mellone

Experienced agents,
experts in your region.

Free. No strings attached.
Book directly online.
Photo of the real estate agent: Jacqueline Marti
Photo of the real estate agent: Robert Mayr

85 employees dedicated to getting you the best price.

Free. No strings attached.
Book directly online.
Photo of the real estate agent: Nicolas Pivin
Photo of the real estate agent: Lukas Speck
Photo of the real estate agent: Gianluca Sergi
Photo of the real estate agent: David Damiano
Photo of the real estate agent: Julio Kimmelmann
Photo of the real estate agent: Pierre-Frédéric Von Kaenel
Photo of the real estate agent: Frédéric Frachon

Benefit from a 15-minute consultation with one of our experts.

Free. No strings attached.
Book directly online.