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I recently read about annuity mortgages and am wondering if this type of mortgage is a good choice. Are there any benefits for home buyers? Which Swiss banks offer annuity mortgages?
Greetings,
Annuity mortgages are mortgages with fixed repayments. You can learn more about annuity mortgages here.
Amortizing your mortgage while interest rates are cheap is often a good financial move because when interest rates climb again, you will owe less debt on which you need to pay interest.
You can reduce your mortgage debt by directly amortizing the mortgage or by using an annuity mortgage. Many homeowners perfer to us indirect amortization to save on taxes.
Annuity mortgages are only offered by a small number of banks (like the Berner Kantonalbank). Because there is little demand and competition in the annuity mortgage market, you will normally find better interest rates for regular mortgages.
Best regards from Moneyguru
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Annuity mortgages explained
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Annuities explained
