Repayment

Repayment means you're paying off a loan. Depending on the purpose for which you are taking out a loan — home ownership or capital — and the conditions, it makes sense to adjust the repayment amount. 

In addition to regular repayments, you can add unscheduled extra payments as an option to your financing. 

You can determine the best repayment amount by talking to your mortgage broker. 

Plan your repayment wisely: How to manage your repayments optimally

A well-thought-out repayment strategy is much more than just deciding on a specific percentage – it determines how flexible, how fast and how expensive your financing will ultimately be. While a higher repayment rate (e.g. 3–5%) allows owner-occupiers in particular to pay off their debt more quickly and creates long-term security, investors often deliberately opt for lower repayment rates in order to maintain liquidity for new investments. The key thing is that your repayment rate fits your goal: do you want peace of mind or a return on your investment? In addition, you should definitely pay attention to flexibility – i.e. options for repayment adjustments and special repayments that reduce interest costs during the term and give you leeway. Many banks allow 1–3 repayment changes during the fixed interest period and annual special repayments of up to 5%, if contractually agreed. The bottom line is that those who regularly review their repayment and adjust it to their own life situation often save more money than would be possible through minimal interest rate differences. A clever repayment strategy is therefore one of the strongest financial levers in any property financing.