Mortgages

Each month, you pay a fixed amount consisting of interest and redemption. At the beginning, the interest is higher than the redemption, at the end the difference is reversed. The tax benefit is higher at the beginning of the term; the net housing costs will therefore increase during the term.

With an interest-only mortgage, you only pay interest during the term. This interest may also be tax deductible. The monthly payments are therefore relatively low, because you don’t have to pay off during the term of your mortgage. Repayment at the end of the term is a requirement and we recommend people to consider how they are going to do this during their mortgage term.

A linear mortgage means that you repay the same amount every month for the entire running time of your mortgage. The repayment of the mortgage is therefore the same, but you pay an increasingly smaller amount of interest as time goes by. The tax benefit is higher at the beginning of the term than at the end of the term. At the end of the term, the entire mortgage amount is repaid.