English

Mortgage amortization after retirement

Here you will find the right answers

Forum Banking Forum Mortgages Mortgage amortization after retirement

Your web browser does not support JavaScript, or you have temporarily disabled scripting. This site needs JavaScript to function correctly.

About Moneyland Forum

The moneyland.ch forum lets you exchange knowledge on numerous topics related to money and get answers to your questions at any time. Join forum users and experts in discussions relating to banking, investment, insurance, retirement, telecom and everyday money topics.

Show categories

Forum

Categories

BenutzernameMoneyland User Questions
Status Member
Registriert seit1/27/17
Beiträge2142

February 21, 2017, 4:27:49 PM

Hello,

Is it possible to amortize my mortgage after I retire?

BenutzernameMoneyguru von moneyland.ch
OrtSchweiz
Status Expert
Registriert seit8/4/15
Beiträge4072

February 22, 2017, 10:30:55 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

More on this topic:
Mortgage comparison
Second mortgage explained
Mortgage affordability explained