You can pay down your mortgage either directly or indirectly.
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Fixed-rate mortgage loan
Are you looking for a loan to buy, build, or renovate your home, but you don't want to worry about changing interest rates? Then have a look at our fixed-rate mortgage loan: your monthly payments will remain the same throughout the term of the loan, even if interest rates go up. Perfect for periods of low interest rates.
To reduce interest-rate risk, you can divide your mortgage loan into multiple tranches with different interest-rate conditions (fixed-rate, adjustable-rate, or short term). That can help protect you against higher interest rates when you renew your mortgage.
Direct repayment
With the direct repayment option, you make regular mortgage payments to BCV. These payments will be applied to the loan principal and interest, and your overall mortgage debt will decrease over time. However, your tax charge will increase every year since you can deduct only the interest payments.
Indirect repayment
With the indirect repayment option, instead of making mortgage payments directly to BCV, you put the money into a third-pillar retirement account that you pledge to BCV. This option offers some tax advantages: you can deduct the payments made to your retirement account from your taxable income; and you maximize the amount of your tax-deductible mortgage debt.
Your mortgage loan will cover up to 80% of the purchase price of your new home if it’s a primary residence, or up to 65% if it’s a secondary residence. That means you need to provide a downpayment of at least 20% or 35%, respectively. The money can come from existing cash assets or from your second- or third-pillar funds.
You can select a term of two to ten years for your mortgage loan. The loan contract can be renewed at the end of each term for the same or a different term, or you can switch to a different interest-rate agreement.
You can terminate your mortgage loan before the term is up, but you will have to pay an early repayment fee. The amount of the fee will take into account how much time is left in the contract and the difference between the interest rate on your mortgage and the market interest rate when you terminate it.
When you sign your loan contract, you can choose between the direct and indirect repayment methods. Payments are made quarterly.
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The ideal mortgage financing package often consists of a custom-tailored combination of fixed-rate and variable-rate loans with different terms. We will work closely with you to determine the solution that best meets your needs.
When it comes time to renew a tranche of your mortgage, you can discuss the different options with your advisor and then select – from the comfort of your own home – the term of your fixed-rate, variable-rate, or short term loan.
Convenient – Our online service is available 24/7 with everything you need to renew your loan, after discussing it with your advisor.
Flexible – You decide whether you want to renew your mortgage online or at one of our branches.
Easy-to-use – You can access the service via BCV-net. If you don’t already have a BCV-net account, you can sign up for one today at BCV-net
Interested?
Not sure what you need? See our product overview.
Variable-rate mortgage
Our variable-rate mortgage loan lets you buy or renovate a home with interest rates that fluctuate as market conditions change.
Short term mortgage loan
The short term mortgage loan's follows financial market conditions during your chosen term.
Our Building Plus loan provides worry-free financing for the construction of your home – and you don't have to start paying it back until construction is complete.