Linear mortgage

A linear mortgage requires you to repay the borrowed amount in fixed, equal capital portions throughout the loan term. For example, a €1 million loan over 20 years means paying €4,167 in principal reduction each month, regardless of market conditions.

Interest payments decrease each month because interest is calculated only on the remaining balance. Your monthly payment therefore declines over time as less capital remains outstanding. This structure appeals to commercial property investors seeking predictable long-term debt reduction and clear path to full ownership, without refinancing risk.