Practical changes
Today, owning your own home has a tax cost: the State considers that you "earn" fictitious rent by living in your home, and taxes you for it. In return, you can deduct your mortgage interest. Tomorrow, no rental value, but no deduction either. The mortgage therefore becomes less strategic from a tax point of view.
So, do we pay it back?
Not necessarily - and certainly not in a hurry! Here are the questions to ask yourself before deciding:
- Is my money working elsewhere ? If your savings are generating a higher return than the cost of your mortgage, it's best to keep them invested. Repaying your loan means a guaranteed return... but often a modest one.
- Do I have enough cash? Money invested in real estate is tied up. In the event of an unforeseen renovation, a hard blow or a desire to help your children, you can't "withdraw" the bricks.
- Where am I in my life? As they approach retirement, some homeowners have an interest in reducing their debts. But beware: once the mortgage is very low, it becomes difficult to take out a new one - banks are less enthusiastic.
Indirect repayment via Pillar 3a: an intelligent alternative
There is a way to pay off your mortgage while still putting your money to work: indirect amortization via Pillar 3a. The principle is simple: rather than repaying the bank directly each year, you pay a sum into a 3a account or pension solution - up to CHF 7,258 per year for a person affiliated to a pension fund in 2026. This amount is fully deductible from your taxable income, generating immediate tax savings. The accumulated capital will then be used to repay the mortgage in a lump sum, usually on maturity or retirement.
With the abolition of rental value, this advantage takes on even greater significance: although mortgage interest will no longer be deductible, the 3a deduction remains fully valid. It's a tax lever that survives the reform - and means you don't needlessly tie up your cash while waiting for your loan to mature.
The right reflex
The reform will not take effect for a few years, and the question arises above all when your mortgage matures. Until then, don't panic. The best thing to do is to take stock of your overall financial situation with your personal advisor, before making a decision that will have a lasting impact on your assets.