Indirect repayment

If you decide on a mortgage, there are two possible methods of repayment available to you: direct or indirect repayment.

Any way you look at it, a mortgage is a considerable financial burden. An accident, sickness or death can soon put you in financial difficulties. With capital accumulation life insurance from Zurich, you can repay your mortgage indirectly. Be well insured against unforeseen events:

Direct repayment

With direct repayment the 2nd mortgage is paid twice yearly; that means the mortgage debt is reduced by the same amount each year.

• Result: as the term of the mortgage progresses, the debt and the interest on the debt, which is deductible from your taxable income or wealth, sink resulting in a greater tax burden.
• If you want to ensure that your residential property will be passed on to your heirs in the event of your early death or disability, then we recommend a residual debt insurance.

Indirect repayment

• The “trick” with indirect repayment is that you do not repay the second mortgage over the entire term. Instead, you pay into a capital accumulation life insurance. When the insurance expires, you pay the second mortgage off in one go.
• Advantages: interest paid on the loan is tax-deductible for the entire term of the mortgage. In other words, your mortgage will not force you into a higher tax bracket.
• In addition, indirect repayment offers your whole family comprehensive risk protection.

We would be happy to advise you personally about this. You can contact us directly by e-mail.