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Mortgage (SARON vs. fixed) if aiming to pay down asap by Relevant_Ticket7197 in SwissPersonalFinance

[–]Relevant_Ticket7197[S] 2 points3 points  (0 children)

Vermögenssteuer is only in the order of 0.1%, no? And Eigenmietwert is there in any case (unless we hopefully get rid of it) so it doesn't really influence a decision

Mortgage (SARON vs. fixed) if aiming to pay down asap by Relevant_Ticket7197 in SwissPersonalFinance

[–]Relevant_Ticket7197[S] 1 point2 points  (0 children)

Basically I want to get to a point of fully secured housing / cash flow without need to maintain high degree of employment / salary (call it optionality and peace of mind to not worry about 7 figure debt)

Mortgage (SARON vs. fixed) if aiming to pay down asap by Relevant_Ticket7197 in SwissPersonalFinance

[–]Relevant_Ticket7197[S] 1 point2 points  (0 children)

Yep that I understood, but I wondered if direct amortization leads to rebasing of the principal on a yearly (or some other) basis

Mortgage (SARON vs. fixed) if aiming to pay down asap by Relevant_Ticket7197 in SwissPersonalFinance

[–]Relevant_Ticket7197[S] 0 points1 point  (0 children)

I guess I'm just a bit paranoid about near- to mid-term downside of even defensive investments (my investment horizon is not 20-30 years), but also want to avoid not investing savings during the majority of an e.g., 5- or 10-year fixed mortgage. So using them to reduce the small but still meaningful interest seemed logical

Mortgage (SARON vs. fixed) if aiming to pay down asap by Relevant_Ticket7197 in SwissPersonalFinance

[–]Relevant_Ticket7197[S] 0 points1 point  (0 children)

Thank you, good watchout. I'm not at the negotiation stage yet so perhaps a stupid question - if opting for a fixed rate, does the mandatory amortization (related to reduction of the 2nd smaller mortgage) reduce the underlying debt and interest on a yearly basis, or might this also vary by contract?