Reasons for amortization

When buying a property, at least 20% of the property value must be funded using your own equity. Banks will finance up to a maximum of 80% as two separate mortgages:

• First mortgage: max. 67% of the property value
• Second mortgage: max. 13% of the property value

Unlike the first mortgage, you are required to pay back the second. You must pay it back within 15 years or until you reach retirement age – whichever comes first.