Sondertilgung: A popular but overrated option

Who doesn't like the idea of repaying extra on their mortgage? That is what “Sondertilgung” is. But is it a good idea?
Published on May 25, 2021
Sondertilgung: A popular but overrated option

Category First Time Buyers

Written by Dr. Christian Mulder

Published on

Who doesn't like the idea of repaying extra on their mortgage to avoid penalties? That is what “Sondertilgung” is, and virtually every mortgage borrower wants it. It is a great sales argument for advisors: If you were to use your extra payments/savings/bonuses, you could be done with your mortgage by year "X".