1. Sole ownership
Sole ownership is a possible form of ownership when buying a house. Only one owner is entered in the land register, which is also possible for married couples.
2. Amortization
This means the partial or complete repayment of a mortgage. It usually takes place when the interest is paid and should be completed within 15 years, but at the latest when you retire.
3. Repay the mortgage
The repayment of the mortgage is equivalent to the termination and continuation of the same with another provider. This usually involves prepayment penalty.
4. Building loan
The building loan is not a mortgage, but will be converted into one after the construction work has been completed. In the case of a new building, the building loan may only be used when the own funds have been used up.
5. Lending
A mortgage lender usually only finances up to a maximum of 80 percent of the property; if additional collateral is available, a higher mortgage is possible.
6. Guarantee
In the case of a guarantee, the guarantor undertakes to assume the payment obligations if the main debtor no longer meets these.
7. Cap
A cap is an upper limit of interest that has been agreed between the debtor and the creditor. A cap is only available with a variable interest rate like the Libor mortgage.
8. Direct payback
The opposite of indirect amortization means paying off the mortgage to the bank in tranches on a regular basis. The mortgage debt is reduced evenly, which increases the tax burden.
9. Third pillar
Every Swiss person always pays into the first pillar, every employee into the second pillar. Pillar 3 provision is voluntary and is carried out privately. It plays an important role in real estate financing.
10. Equity
At least 20 percent equity must be available to buy a property. This can come from various sources, at least 10 percent of which may not come from the 2nd pillar.
11. Own rental value
The rental value is a fictitious income that is attributed to property owners. This portion has to be taxed.
12. Form of ownership
The form of ownership is entered in the land register and can be sole, joint or total ownership. This is especially important when married couples purchase property.
13. First mortgage
This is granted up to a maximum lending value of 65 percent and can be agreed without a fixed term. Nevertheless, it has to be repaid after a certain number of years.
14. Family mortgage
This is a special form of mortgage that is only offered by a few credit institutions. There is a discount on the interest rates, although this discount is limited in time.
15. Fixed-rate mortgage
The fixed-rate mortgage runs for a fixed period, which can be up to 20 years. The interest rate remains the same over the entire term.
16. Forward mortgage
This mortgage is closed in advance and can be agreed up to 24 months before it actually begins. This is usually associated with a fee.
17. Total property
Through a community of heirs or through the marriage contract, several owners can exist on one property. They have equal rights and obligations among one another.
18th mortgage bond
Here, the creditor counts a mortgage note as a mortgage and thus becomes the authorized owner of the security object.
19. Mortgage
The mortgage is a lien on a property. However, the term is usually used synonymously for the loan or for the loan.
20. Mortgage lender
The provider of a mortgage is the mortgage lender. This can be a bank, insurance companies or pension funds.
21. Mortgage model
There is a fixed, variable and Libor mortgage, all three types of mortgage are offered on an equal footing in Switzerland.
22. Mortgage rate
This means all costs that are related to the mortgage and that are payable by the mortgagee.
23. Mortgage calculator
Here on neotralo.ch you use a mortgage calculator to find the best provider for your property financing project.
24. Real estate valuation
The mortgage lender values a property and determines the value regardless of the purchase price. This value is the basis for the calculation of portability and lending.
25. Indirect payback
With indirect amortization, the mortgage is repaid through pillar 3a, and the mortgage amount does not decrease during the term.
26. Calculatory interest rate
This is used to calculate the portability and is usually five percent. It is a historical average.
27. Purchase price
The purchase price of a property is the value that the seller and buyer have agreed on. It can differ from the market value.
28. Term
The term is set for each mortgage and can be up to max. 25 years going. The agreed interest rate remains the same over the specified term.
29. Libor mortgage
This form of mortgage is based on a Libor rate that is adjusted regularly. This adjustment usually takes place on a quarterly basis.
30. Minergie
Experts call minergie the energy standard that is achieved for so-called low-energy houses. Improving Minergie brings tax benefits.
31. Co-ownership
At least two owners share the property or ownership of it. There can be various ownership quotas that are recorded in the land register.
32. Utilities
The ancillary costs are important for the affordability calculation and indicate the costs that must be taken into account in addition to the mortgage interest. They are accepted with 1 % of the property value per year.
33. New mortgage
A new mortgage is the mortgage that is taken out when you buy a property. Its counterpart is follow-up financing, which denotes the continuation of an existing mortgage.
34. Usufruct
Usufruct is the right to be entered in the land register to treat a property as property.
35. Object value
The property value is not the same as the purchase price or can differ from it. The term is used synonymously for the market value.
36. Offer
Non-binding offers on the part of the mortgage lender are regarded as offers. It includes the selected mortgage product and the interest rate offered.
37. Online mortgage
The customer does not have to appear in person at an advisor in the bank, but can take out the mortgage online. It is possible to complete the entire transaction by phone or email.
38. Online mortgage extension
The customer and the advisor do not meet in person, but the extension of the mortgage takes place online.
39. Pension fund
This means old-age provision for working people, all Swiss workers have to pay in here. The second pillar credit is not suitable for securing a mortgage.
40th benchmark rate
The benchmark rate is also known as the window rate and means the mortgage rate offered for a fixed term. It is often still negotiable.
41. Rollover mortgage
The name of this type of mortgage is just another one for the Libor mortgage. Please refer to this term for an explanation.
42nd note
The mortgage note is created when the mortgage is issued and recorded in the land register. It stands for the lien, which the mortgage lender has secured.
43.Saron
The saron is to replace the Libor and is the reference interest rate. The price for this is determined on a special platform at the Swiss stock exchange.
44. Portability
It describes the relationship between gross income and the ongoing costs of financing real estate.
45. Portability calculator
This allows the portability and the necessary income of the future mortgage holder to be determined in advance.
46. Maintenance costs
These are the costs that are required to maintain the property. They are accepted at 0.4 percent of the purchase price when calculating mortgages.
47. Over-lending
A mortgage of more than 80 percent is possible if additional security is brought in. These mostly come from the 3rd pillar.
48. Variable mortgage
It is flexible and does not offer a predefined term. The notice period is comparatively short at three to six months.
49. prepayment penalty
This is due if a mortgage is canceled before it expires. The amount of the compensation depends on the remaining term and the current reinvestment interest.
50th extension
The mortgage can be extended, which is possible with another provider or with the previous mortgage lender. A comparison about ours Mortgage comparison showswhich is the better alternative in individual cases.
