As our partners Helpmycash point, make an early partial repayment of the mortgage, ie the bank to repay the loan ahead of schedule by contract, is still worthwhile despite recent tax changes. And is it still represents a reduction of interest. And if you are in the groups of citizens for maintaining the deduction, you can provide a large tax savings. What are these assumptions?
• That we bought our house before 2011
• That our annual income is less than 24,000 euros
• That we live in one of the communities that maintain the tax relief, in whole or in part
In either case, the more depreciated more money we can deduct in the next tax return (up to 9,040 euros maximum possible under the law).
A tip for achieving even greater savings is to choose, at the time of signing the early repayment, reducing the duration of the mortgage (the other option we offer the bank is to reduce the amount of contributions). Less time spent in our debt, pay less interest to the bank.
And there is still more savings to repay part of the loan early: the rise of the Euribor will affect them less and that unless the outstanding principal, the lower the impact of the interest.
If the partial redemption fee in the contract we signed is 0%, the play we will come round.
(Final note: In the coming days we will publish a longer article on this subject)