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Mortgage amortization after retirement

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BenutzernameMoneyland User Questions
Status Member
Registriert seit1/27/17
Beiträge2145

February 21, 2017, 3:27:49 PM

Hello,

Is it possible to amortize my mortgage after I retire?

BenutzernameMoneyguru von moneyland.ch
OrtSchweiz
Status Expert
Registriert seit8/4/15
Beiträge4079

February 22, 2017, 9:30:55 AM

Greetings,

As a general rule, banks and insurance companies which provide home loans require the full amorization amount (the "second" mortgage) to be repaid in full before retirement. Some lenders have even stricter age limits. Swiss Life, for example, requires second mortgages to be amortized by the age of 60.

The main reason for this is that lenders expect mortgagors to experience a drop in income when they retire. Mortgagors may no longer meet affordability requirements after their income falls. When a second mortgage is paid off ahead of retirement, the remaining mortgage becomes cheaper, making it affordable in spite of lower income.

Best regards from Moneyguru

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