Indirect amortization
When we buy our own home, very few people in Switzerland can cover the costs out of our own savings - we need a mortgage. Mortgage creditors grant up to 80% of the purchase price as a mortgage, 20% must be borne from your own funds. Two-thirds of the purchase price is considered a so-called first mortgage, for which there is no obligation of repayment. The difference between this first mortgage and the equity is called the second mortgage, which must be repaid within 15 years, or by retirement at the latest. There are two alternatives to repay this part of the mortgage:
Do children have to support their parents financially?
The question of whether the children must support their parents financially arises, for example, when the parents enter a care home and it is foreseeable that their income will not be sufficient to cover the costs of the home. This leads to a depletion of assets. What happens when the assets are exhausted? Who has to pay for the costs and support the parents?
Can I reclaim my mortgage interests?
On 26 April 2021 the "Neue Zürcher Zeitung" published an article with the title: "Thousands of mortgage borrowers affected: Ruling with explosive force on Libor mortgages". The article deals with the question of whether Libor mortgage interest can be reclaimed from the bank since the introduction of negative interest rates. Reclaiming the interest may not be that easy. We tell you which requirements have to be met in Switzerland.
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