Get rid of high monthly annuity from an old mortgage loan

By the way, the tax "benefit" is 40 euros, not the amount to be deducted.

Sigh.. I do count every penny too, but the figure really doesn't add up. Let's see what others say :)

1. The bank doesn't have to do anything for the old loan if it doesn't want to. You are merely an applicant.
2. Normally, you can't "extend" the old loan without VE, because the bank terminates an existing refinancing and enters into a new one ==> thus a loss occurs that you have to pay. However, since the bank only changes the refinancing and continues to earn a margin, the loss is lower than with a complete payoff.
3. Either way, you have the loan, either alone or together with the new financing. The question is what it's worth to you to extend the term.
4. If you should repay the old loan and reapply together with the new financing (which can then also be higher than T€ 60, so that you can deduct more interest), you could split the loan - one part for rental, one part for owner-occupancy. By the way, you can claim the VE as advertising expenses for tax purposes.

By the way, you can claim the VE as tax-deductible advertising expenses.

As advertising expenses? How is that?

As income-related expenses? How so?

It's a rented apartment, isn't it, or did I misunderstand that? Then they are just normal income-related expenses like the interest (it's nothing else).

It's a rented apartment, isn't it, or did I misunderstand that? Then these are just regular advertising expenses like the interest (it's nothing else).

I just wasn't clear at all that this counts as advertising expenses on the tax return. But apparently it does.

Just because of the tax advantage, I wouldn't pay it off, and since you get a better interest rate for the single-family house with more equity. Stupid question but why do the 600€ bother you? Hopefully, they are largely covered by the rent.