Amortization/depreciation

The amortization of the interest-free loan begins subject to the lease of the property in the fifth year after the disbursement of the loan.

For income up to CHF 100,000, the annual amortization rate is 3% of the interest-free loan. This income limit is increased by CHF 5,000.- for each minor child as well as for each adult, non-working child who attends school, is in a vocational apprenticeship or is permanently incapacitated for work, provided that the applicant is responsible for the maintenance of the child s income. The income of persons who are married to each other or living in a registered partnership is added together. Recipients of subsidies who exceed the income limit during the term of the loan must make higher annual repayment installments in accordance with their income.

The percentage of annual amortization always refers to the loan originally disbursed.

If the amortization of the loan imposes a significant hardship, the Office of Building and Regional Planning, Housing Development Unit, may approve payment relief (smaller repayment installments or a deferral) as a stop-gap measure via payment relief 

Theearly repayment of the interest-free loan is possible at any time.

If this repayment is made within five years of the disbursement of the subsidy funds, the subsidy for densified construction must be repaid in full.

In the event of early repayment from the fifth year and until the end of the tenth year after disbursement of the subsidy funds, half of the corresponding subsidy amount shall be repaid.

The loan shall be due for immediate repayment and the subsidies shall be repaid if:

• Constructional changes are made without the approval of the Office of Building and Regional Planning, Housing Subsidy Unit;
• Subject to the subsidized property in whole or in substantial part being rented out, otherwise put to foreign use or being put to no use for more than one year;
• It is subsequently found that the applicant has defrauded the grant funds.

In such cases, the loan and any subsidies, calculating the variable mortgage interest rate for single-family houses and condominiums of Liechtensteinische Landesbank AG, valid during the term of the loan, shall be repaid. ( Art. 37 WBFG)

If the repayment of the loan imposes a significant hardship, the Office of Building and Regional Planning, Housing Development Unit, may approve a request for payment relief (smaller repayment installments, deferment) as a bridging measure.