Taking out a mortgage is one of the most important decisions in life. A small mistake, however, can cause big problems, because it usually involves sums of several hundred thousand francs. So that everything runs smoothly for you, we have the ten most important tips about mortgages:
Unfortunately, a widespread mistake: Many mortgage customers go to the house bank and have an offer made that they accept without further comparison. Instead of using comparison sites like neotralo.ch, the first best offer is chosen, which was certainly well sold by the consultant. But the account balance will notice this negatively, because only rarely is the house bank really as cheap as it claims to be.
Always consider alternative offers and look for the possibility to renegotiate. It is often possible to negotiate discounts that affect, for example, the amount of interest or fees associated with the mortgage.
Above all, compare the interest rates, but not only! The other conditions should also be examined more closely, because they are decisive for the assessment of the offer as a really good offer or only as apparently good. Use our comparison page and find the best provider with the lowest interest rates. The key benchmark interest rates are updated daily, so when making a comparison, also pay attention to the date from which the respective figures come.
You should definitely include online banks and insurance companies. Online providers themselves have lower costs than branch banks and are happy to pass these savings on to their customers. This makes it possible to find significantly better offers in interest rates. However, advice is often not possible in person or is only offered via chat or email.
If you value being able to sit directly opposite your advisor, you can safely ignore the online banks. All others should get the necessary information about the online providers and include them in the search. Only then can real comparisons be made with the offers available from the local bank or other branch banks.
If you bet that you want to get the mortgage particularly cheap, you should show negotiation skills. This means that you cannot simply accept the interest, fees and other conditions offered. Negotiate cleverly and may even threaten to turn away from this provider and choose the competition. However, you should not gamble blindly, but rather know from which bank there is another, realistic offer.
Variable mortgages are very expensive in Switzerland, so the fixed-rate mortgage or the Libor mortgage is the better choice. Think about which term of a fixed-rate mortgage is best for you and don't tie yourself up unnecessarily long.
If interest rates are very low when the mortgage is taken out, however, long-term commitment is highly recommended, as this way you can secure these rates for the specified period of ten or sometimes even twenty years. However, if you like it more flexible, stick with the Libor mortgage.
This is to be set for one or three months, for six months or for a whole year. You benefit from changing interest rates, which can also be negative for you if interest rates rise on the money market. However, you can also switch to a fixed-rate mortgage when extending the mortgage.
Withdrawing from the mortgage is really only recommended under certain conditions. These exist when the prepayment penalty is rather low and when this is offset by the interest saved.
You need a good offer from another bank or insurance company in advance, which you can find out about at neotralo.ch. Only cancel the existing mortgage if this procedure is actually worthwhile for you, otherwise you will sometimes pay several tens of thousands of francs on it.
Professional mortgage brokers describe a mortgage in the brightest colors and only highlight its advantages. Everything seems great, super and cheap here. Pay attention if someone wants to sell you a product that is only for your benefit.
Let's face it: a bank earns money from a mortgage, so it has an advantage in itself. Anyone who negates this in the consultation is obviously lying and is not a consultant, but only a more or less good seller. Many intermediaries are not neutral, so you should definitely do your own research and obtain offers on mortgages.
The carving is only sensible from a mortgage amount of CHF 250,000, it is mandatory if the amount of external funds required exceeds 65 percent of the purchase price of the property.
Even though bank advisors often describe tranches as very useful, they are only if they are close together and expire within 24 months. Otherwise, the extension of the mortgage is only possible with this one bank, because another bank does not take second place in financing. In the worst case, you will have to continue the tranche on bad terms.
You need at least 20 percent of the purchase amount as equity to get a mortgage. Use different sources of money for this and make sure that you still have enough liquid funds available for unforeseen expenses.
As equity, you can use savings as well as money from the sale of securities, early advances, loans from relatives, gifts or unused mortgages. At least ten percent of the lending value must consist of so-called hard equity. Balances from the second pillar are excluded from being counted as equity.
A common problem with mortgages is that when you retire, they are no longer sustainable. Then in most cases the income and thus the portability decrease. That is why financial institutions check all inquiries about a mortgage so precisely if the applicant has reached or exceeded the age of 50.
The mortgage lending should at best be reduced with age. As a rule of thumb, 120 minus age is the recommended maximum amount of the lending value in percent.
In most cases, the equity capital is not sufficient to buy your own property. That means: debt capital is needed! This debt financing is referred to as a mortgage in Switzerland. However, this is not the loan itself, even if the term is often used interchangeably.
But first it is about the lien that the mortgage lender acquires on the property. This secures the loan that was necessary to buy the property or building. If the new owner becomes insolvent and can no longer regularly pay his loan installments, the property is pledged. Experts speak here of the "mortgage right".
Anyone wishing to take out a mortgage must be able to meet two minimum requirements:
With the term? Mortgage? is the relationship between market value and mortgage. Here, 80 percent must not be exceeded. At least 20 percent of the market value must therefore be raised as equity. Equity can be brought in in the form of cash, a preferred inheritance or a private loan. It is also possible to bring pension funds from the second or third pillar of social security ahead or to pledge them. This can increase the equity component.
It is the second requirement that must be met at least to get a mortgage. This means the resilience of the income, for which the gross income is used. This is burdened by interest and all other expenses (including living expenses). The sustainability should not exceed a third of the gross income. Conversely, this means that a maximum of two thirds of the income can be spent on the mortgage.
If both requirements are met, the mortgage amount is determined. This is the amount of money that must be raised in addition to the own funds to finance the desired property. There are three mortgage models: the fixed-rate or variable mortgages and the Libor mortgages.
All models differ in terms of interest rate developments and they have both advantages and disadvantages. These must be examined more closely in each individual case before a choice regarding the respective model has to be made. Once all the prerequisites have been clarified, offers to banks and insurance companies can be sent to those willing to borrow.
We are talking about basic mortgages on which other models (mixed or combination mortgages) are based.
The similarities in all models are:
The personal financing requirement is decisive for whether a first or second mortgage is required. The first mortgage is possible up to a loan-to-value ratio of 65 percent, the second mortgage is granted on a loan between 65 and 80 percent of the market value. Conclusion: The higher the loan on a property, the more debt capital was required for the financing.
Important: If more than 65 percent debt capital is required, the borrower is tied to a bank. The second mortgage must therefore always be taken out where the first mortgage was granted.
Unlike in many other countries, Swiss banks do not finance real estate at all or hardly at all through second place. This means that they do not resign in favor of other creditors, but instead they rank first and are therefore in the first place when it comes to serving the creditors.
It is possible to split the mortgage debt into several tranches. This gives borrowers a choice of which product to choose for each tranche. If more than 65 percent of the property has to be financed by outside capital, at least two tranches are automatically due.
The reason: The first and the second mortgage are usually given on different terms. Libor and fixed-rate mortgages can be combined here, for example. Borrowers should make sure that they do not tie themselves too tightly to a provider because, for example, they have chosen the maturities poorly.
Good to know: The carving is also possible if only first-tier funding is provided, i.e. if less than 65 percent debt is required to finance the property.
Financing your own property is one of the most important decisions that are made in life. The financial impact of this decision is serious. It is therefore advisable to prepare as well as possible for the conversation with the bank advisor and, above all, to compare the various offers.
For this it is recommended to choose an independent comparison provider like neotralo.ch. Important for a personal consultation: Please note down any questions you want to ask! Otherwise, these questions are ignored in the course of a consultation because the wealth of information is simply too great.
You should also gather all the information that is available about your own financial situation. So you can access it directly in the consultation. It is of course even easier if the online comparison of the offers is used and you can decide at home from which provider you would like more information.
There are three different mortgage models in Switzerland. It is striking that one of these models is most often completed. It is the fixed-rate mortgage that is used to finance residential property. It is suitable for the financing of all properties and can be used for short, medium and long-term financing.
The interest rate agreed upon remains fixed over the entire term. This is particularly advantageous if the term of the loan is very long and it is possible that interest rates change. This is not possible with the fixed-rate mortgage.
The fixed-rate mortgage cannot in principle be released during the term, but there are exceptions as always. In this case, however, the mortgagee must expect a prepayment penalty that he has to pay and that will cost him dearly.
The customer who takes out a fixed-rate mortgage enters into a long contract with the bank. This secures the interest rate and thus your income over the agreed term. If the borrower now believes that he has to repay the mortgage, it is disadvantageous for the bank. She has this disadvantage paid out and sets a prepayment penalty.
The bank will never get out of such a situation as a loser! The following points are decisive for the amount of the prepayment penalty:
A fixed-rate mortgage can be set to different terms, which can range from two to 25 years. However, many banks limit the terms to a maximum of ten years. In contrast, many insurance companies offer significantly longer terms and often offer better terms. Their terms are up to 25 years.
Before taking out the fixed-rate mortgage, borrowers should read the fine print. For example, it regulates the right of termination, which can vary from bank to bank. Some banks cancel the mortgage if the borrower suddenly has a lower income.
In addition, prepayment penalty is often required, even if the termination is made by the bank. The borrower must then take out a new mortgage and accept the current interest. However, this can mean that interest rates are much higher than when you originally borrowed.
It is also important that unexpected events are taken into account. A bank can request prepayment penalty if the mortgagee dies and the property is not transferred to his or her heirs. The bank then judges that the contract was terminated prematurely and that compensation was due accordingly.
It can also be expensive if the property has to be sold due to divorce or separation. Therefore, it is important not only to consider the development of interest rates, but also how long the bond with the mortgage is chosen. Please choose very long mortgage commitments wisely!
In the end, mortgages, or those who want to become one, have to balance security and flexibility. Interest rate security on the one hand, low flexibility on the other. Neither can be reconciled with the fixed-rate mortgage. It should also be noted that the property cannot be sold during the term without paying a prepayment penalty.
Variable mortgages have long been popular, but the seemingly perpetual period of very low interest rates has put an end to this popularity. Today, fixed-rate mortgages or Libor mortgages are much more interesting and offer better conditions.
The variable mortgage is characterized by the fact that it has variable interest rates, hence the name. The term is not fixed and the notice period can be between three and six months. The bank sets the interest rate in individual cases and at its own discretion. It is based on the general interest rate level and uses the offers of other financial institutions for comparison.
It is even possible that the interest rate changes two or three times a year, depending on how flexible the market is at the moment. This can be advantageous for the borrower, but can also have a very negative impact.
The variable mortgage offers a very large risk, and this lies precisely in the interest rate change just mentioned. This is probably the reason why the fixed-rate mortgage is much more popular because it simply offers more security. Anyone wishing to take out a variable mortgage should therefore carefully examine whether the risk of a sudden rate hike is to be borne or not.
Of course, you may benefit from falling interest rates. However, if you conclude the contract at a time when interest rates are already very low, it is unlikely that they will fall further. Here, on the other hand, the mortgage will primarily develop upwards and thus become more expensive.
The acronym Libor stands for London Interbank Offered Rate. When banks borrow money from each other for a short time, they refer to the interest rate as Libor. The offers available on such mortgages range from 30 days to 12 months.
The bank always uses the current Libor interest rate, which forms the basis for all further calculations. There is also a margin that is defined by the bank. An example: The margin is 2 %, the Libor rate is 0.50 %. This results in a mortgage rate of 2.50 %.
The margin does not change, but the Libor rate can fluctuate daily. The mortgage interest rate is of course not constantly recalculated; the adjustment is usually made on a quarterly basis.
The Libor mortgage is also sold under other names.
Then it is, for example, the flex rollover mortgage or a money market mortgage. The way the mortgages work is always the same, only the name is changed.
The borrower must sign a framework agreement when taking out a Libor mortgage. This framework contract usually runs for between three and five years. Within this time, the mortgage can be converted into a fixed-rate mortgage.
However, this is only possible if the mortgagee remains with the same provider; changing the bank is not possible within the so-called basic term of the framework contract. But there is another exception: if you are willing to pay a lot of money for it and accept a prepayment penalty, it is again possible to change the bank.
According to surveys among Swiss banks, Swiss prefer to take out the fixed-rate mortgage. No wonder, they play it safe here and set the term and interest rate when the contract is signed. The terms are usually very long at up to ten years, in some cases they can even be set at up to twenty years.
The mean terms of four to six years are particularly common. They provide planning security, but still allow the desired degree of flexibility. All mortgage models have their advantages and disadvantages, so anyone wishing to take out a loan should look at the relevant properties of the mortgage.
In this way, it can be determined individually whether the flexibility can lag behind in favor of security or whether a capping of the interest rates makes sense. The current low interest rate level is unlikely to exist in the next ten years, so it makes sense to secure these rates.
This in turn is possible via a fixed-rate mortgage, but it is more expensive than a Libor mortgage.
As has already been said, the advantages of this type of mortgage lie primarily in the secure interest rates that are fixed for the foreseeable future. Mortgage borrowers protect themselves against unpleasant surprises by rising interest rates and pay the same interest rate until the mortgage expires. They know exactly what their debts are at any given time and can safely plan their budget. This planning security is particularly important to many Swiss. It is also possible to secure the currently low interest rates with the fixed-rate mortgage. If you know that interest rates will rise soon, you can secure the low interest rates for a fixed period of time and relax. The fixed-rate mortgage is therefore often referred to as insurance against rising interest rates.
The biggest advantage of the fixed-rate mortgage is also its biggest disadvantage. Because a borrower does not benefit from falling interest rates through the fixed interest rates. If the interest falls, he continues to pay the higher amount that was agreed when the contract was concluded. Another disadvantage concerns the fixed-rate mortgage when it is due. Then a new mortgage must be taken out, which may be possible at lower interest rates. The sustainability calculation can thus be questioned. Anyone who wants to convert the fixed-rate mortgage into a variable mortgage or even to dissolve it entirely must expect a prepayment penalty or a penalty fee. In some cases, early redemptions are also contractually prohibited. The disadvantages can be minimized, which is especially true when home ownership is financed. The affordability should then be calculated with 5 % of the loan amount and not with the currently low interest rates. In addition, the loan amount should be divided into different tranches with different terms. This makes you less dependent on current interest rate fluctuations and reduces the risk of having to take out a new mortgage in times of high interest rates.
The market share of the variable mortgage is now only small, because the interest rate is subject to the arbitrariness of the banks. Those who want to remain flexible benefit from the undefined duration and the short notice periods of three to six months. The biggest advantage of the variable mortgage is that property owners can benefit from falling interest rates because their interest rate is not fixed. The conversion into a fixed-rate mortgage is possible at any time if the specified notice period of three or six months is observed. This is particularly important in the context of changing interest rates. The mortgagee can react directly to an interest rate.
It is not for nothing that variable mortgages have recently disappeared from the Swiss market. They have enormous disadvantages, because the interest rates can be adjusted both upwards and downwards. For an apartment owner, this means that they have to watch the interest rate market closely so as not to experience an unpleasant surprise. This can be exhausting and risky, because the right time to cancel and take out a new mortgage is not always right. Another disadvantage is the higher interest rates, because a variable mortgage has a much lower interest rate than a fixed-rate mortgage. The premium is large, especially in times of very low interest rates. In some cases we speak of double interest rates compared to a fixed-rate mortgage and with a term of between two or three years. Even fixed-rate mortgages that are set to ten years are usually cheaper than variable-rate mortgages. At the latest when interest rates start to rise in the market, the variable mortgage should be canceled and converted into a fixed-rate mortgage.
The Libor mortgage
This mortgage model has become more and more established in recent years, while the variable mortgage has steadily lost ground. This mortgage is concluded on a fixed term, while the margin remains unchanged. What is adjusting, however, is the interest rate. Depending on the chosen basis, Libor adapts itself quarterly, monthly or annually, sometimes also semi-annual adjustments are possible. Anyone who can cope with fluctuations upwards is well advised with the Libor mortgage if the currently low interest rates are to be used. The biggest advantage of the Libor mortgage is that the interest rates are transparent and in line with the market. They depend on the money market. Libor is therefore particularly suitable for short-term financing; interest rates are usually lower than for variable or fixed-rate mortgages.
The Libor mortgage also has disadvantages, although this type of mortgage has been very popular in the past. Interest rates can fluctuate widely, which means a high interest rate risk. The customer can choose whether to take out the mortgage with or without a cap. In the financial world, a cap is called a kind of cap, so this is the upper limit of interest that must not be exceeded during the entire term of the mortgage. So that the customer can get this security, he has to pay something. The corresponding amount is due at the beginning of the loan term. The shorter the term for the mortgage, the less meaningful the cap is. As long as larger fluctuations on the money market are not to be expected, the cap is generally not worthwhile. Despite the cap, the Libor mortgage is usually still cheaper than a variable or fixed mortgage.
There are numerous mortgage providers in Switzerland and the current conditions are constantly changing. The table below shows a selection of different providers whose loans differ depending on the duration of the fixed interest rate. The interest rates mentioned are "from interest", which means that they can also be higher, but are possible from the above rate with a good credit rating:
|providers||Variable mortgage (in %)||Libor mortgage (fixed at 3 months, in %)||Fixed-rate mortgage for 3 years (in %)||Fixed-rate mortgage for 5 years (in %)||Fixed-rate mortgage for 10 years (in %)|
|Baloise Bank SoBa||2,625||0,95||0,79||0,83||0,95|
|Clientis Zurich regional bank||2,5||1,04||1,09||1,25|
|Bank in Zuzwil||2,75||1,09||1,09|
|Glarus Cantonal Bank||2,875||1,08||1,1||1,25|
|Lenzburg mortgage bank||2,875||1,0||1,08||1,11||1,3|
In order to get a concrete insight into the actual interest rates of the mortgage providers, we once assumed that we would take out a mortgage of CHF 150,000 and have a very good credit rating.
Our fictitious mortgagee sets the interest at ten years, so he takes out a fixed-rate mortgage. The differences are enormous and there are 855 Swiss Francs between the cheapest and the most expensive provider. Every month!
The individual providers concluded as follows:
|providers||Interest rate in %||Monthly payment in CHF|
|Baloise online mortgage||0,96||1,440|
|Banque Cantonale Vaudoise||1,20||7,800|
|Baloise Bank SoBa||1,21||1,815|
|Glarus Cantonal Bank||1,30||1,950|
|Lenzburg mortgage bank||1,30||1,950|
|Banca Popolare di Sondrio||1,34||2,010|
|Lienhardt & Partner AG||1,35||2,025|
|St. Galler Kantonalbank||1,35||2,025|
|Zug Cantonal Bank||1,36||2,040|
The variety on the money market is great and some future home or apartment owners are wondering which mortgage is the right one for them. Various factors play a role when choosing a mortgage.
You should keep in mind that it is not just the cheapest mortgage that counts, but the whole situation must be right. This also includes the term and conditions of the mortgage offer.
Before deciding on a mortgage, you should determine how much risk you can afford. Ask yourself these questions:
After answering these questions, it turns out that there are different types of risk, which we will be happy to explain below. In summary, one can say that there are very risk-averse people who always want to be on the safe side and are willing to pay more for it.
On the other hand, there are people who are very willing to take risks and who really enjoy using their money and juggling it. These people are also willing to put in more effort and are always vigilant about the current money market.
Still other people would like to take a risk, but cannot afford it. Their mortgage carrying capacity is narrow and they have to rely on security in order to be able to absorb rising interest rates. The opposite is represented by people who may not approve of rising interest rates, but who can still intercept them at any time.
The question of flexibility is similar to the question of risk. If you want to be able to sell your property again at any time, you cannot commit yourself to the mortgage either. In this case, taking out a fixed mortgage over twenty years would be the wrong choice. If you only want to be or have to be a little flexible, you can also conclude longer loan contracts and thus benefit from the advantages of a fixed-rate mortgage.
Let's divide people into eight risk groups, after which we can recommend the right mortgage.
Risk type 1 does not like risk, even though it has sufficient financial reserves. He also wants to remain flexible to a certain extent. The ideal mortgage is the fixed-rate mortgage or the Libor mortgage.
Risk type 2 does not like risk, but has sufficient financial cushion and could well afford the risk. But that doesn't matter, because this guy wants security. He plans to live in his home for a long time and therefore does not need flexibility in financing. He can get into debt in the long term and best chooses the fixed-rate mortgage.
Risk type 3 does not like risk and has no financial reserves to absorb it. If something went wrong with the financing, this guy would have no cushion. He therefore needs a fixed-rate mortgage from which he can get out if necessary, and thus relies on the necessary flexibility. Another variant is out of the question, the only thing left is to rent a house or apartment.
Risk type 4 does not like and does not want to take any risks. He doesn't need to be flexible because he doesn't want to sell his property again. The long-term fixed-rate mortgage is the right choice for this type.
Risk type 5 is a born player because he loves taking risks when investing. Unfortunately, the financial cushion is thin to nonexistent, so this guy cannot afford to take any risks. He also wants to remain flexible. This is why type 5 best chooses the fixed-rate mortgage, which provides an exit option. If that is not an option, the only thing left to do is rent.
Risk type 6 needs the necessary security, although it would actually be willing to take risks. He wants to live in his property for the long term and does not plan to sell it again. He therefore does not need flexibility in financing and can rely on a long-term fixed mortgage.
Risk type 7 has a good financial cushion and can afford it if the planning changes. The necessary financial cushion is available to absorb a higher risk. A short-term fixed-rate mortgage or the Libor mortgage is ideal for him, because at the same time he needs a certain degree of flexibility.
All types of mortgage are very well suited for risk type 8. He can choose between the fixed-rate mortgage, the Libor mortgage and the variable mortgage and take a higher risk because the necessary financial cushion is available. Type 8 wants to stay in his property for the long term and therefore does not have to be flexible. He chooses his best mortgage best in relation to the interest rates that have been set and are still to be expected. Type 8 actually has all the freedom in choosing a mortgage.
Interest rate forecasts, which are decisive for choosing the best mortgage, are published again and again. If interest rates are expected to rise in the long term, a fixed-rate mortgage should be taken out. Then secure the currently low interest rates and can face the rising interest rates and thus the worse conditions with ease.
These do not affect you. However, if the forecast shows that interest rates will decline soon, you should take out a short-term mortgage so that you can secure the lower interest rates when the opportunity arises. The Libor mortgage can also make sense here. It is important, however, that you not only look at the short-term interest rate forecasts before you decide, but that you have an overview of the whole picture over a longer period of time.
Short-term fluctuations are always conceivable, but you should follow the development of interest rates for at least one year. If in doubt, always play it safe and stick to the mortgage option, which offers you flexibility and security in a balanced amount.
Compare the different providers here on neotralo.ch and find? Your? Mortgage!
How expensive you get the mortgage is also a matter of negotiation. On the one hand there is the fixed interest rate on the part of the bank, on the other hand there is an accommodation on the part of the advisor. With the right strategy, you can secure the cheapest mortgage for you!
Financing a property is not something that is done today and will be checked tomorrow. Rather, you are committed to making the payments regularly for ten or even twenty years, thereby transferring the property into your final ownership. This also explains why financing has to be planned in the long term.
Take your time and rely on a comparison provider like neotralo.ch to get the best financing offer for you!
Determine for yourself what type of risk you belong to. Do you want to be on the safe side and shy away from the risk? Or is the mortgage not allowed to cost a lot and can involve a higher risk? Do you want to use the property yourself in the long term or do you want to sell it again? Once you have defined this point for yourself, you can put together the right financing strategy. Then it means negotiating well!
At first glance, the offers of mortgage providers differ only slightly. As the table on our pages shows, it is only a few percentage points that make the difference here. But counting on the sum of the mortgage amount, there is a lot of money that has to be spent more each month. If you compare well at first, you can save many thousands of francs a year.
Hence our tip: When comparing the offers, do not only consider the numbers that are presented to you. Ask how much room to negotiate and try to negotiate the provider down a few percentage points. Even if it's just the decimal place, it makes a huge difference for you.
Do not rush anything and do not agree to a provider that urges your decision. A good offer will still exist tomorrow so that you can take a close look at it and renegotiate if necessary.
Important: Find out all you need to know before you go into a consultation. Especially when it comes to a telephone consultation, many inquirers really feel run over. The consultant bubbles down his offer and you don't even get to question anything. Interrupt at the points that are important to you and always follow up! Provide your own specialist knowledge, which of course you should really acquire. In this way you become more confident and negotiate on an equal footing, which will result in high savings.
Most Swiss people turn to their house bank when they want a mortgage offer. But that can be a mistake! The house bank is not always automatically the cheapest bank, rather it builds on the fact that it has a lot of trust with its customers and thus enjoys a special position.
However, it is worthwhile to rely on other providers and to obtain corresponding comparison offers. You can of course obtain an offer from the house bank and will have to provide comprehensive statements about the property you are buying. If the offer is available, you should contact other banks and obtain an offer from them.
You can also use the mortgage comparison on neotralo.ch and get an overview of the current market situation. As a rule of thumb, you should use at least four to five offers for comparison. It is important that all offers are based on the same database and do not use different data.
This applies to the selected mortgage model, the term, the amount of the mortgage and the amortization. Since the interest fluctuates partly daily, you should also compare the interest rates from the same day and not from different days. Then the formerly cheapest bank can again be one of the most expensive because it has meanwhile adjusted its interest rates.
It is an ancient and well-tried strategy to get the best price: confront the bank with the competition. In the negotiation or in the consultation, you can certainly state that you have other offers that may be even a lot cheaper.
You can even play poker and make another offer cheaper than it actually is. But don't overestimate yourself! If you let it be noted that you are bluffing or if the alleged offer is too good to be true, your counterpart will also not play along and expose you.
If the discussions do not result in you being offered a lower interest rate, you can also focus on the fees. Put them up for discussion and ask them to be deleted. If none of this helps, you can threaten to change providers.
Many consultants will now? Speak to the manager? (a popular phrase to give the customer the feeling of importance) and then return to you with the pleasant message that you are getting a particularly great offer.
Finding the right mortgage is not just about trying to get a cheap deal. The following tips will help you identify the right mortgage for you:
Well prepared and negotiated wisely is half the battle! The savings may not be serious at first glance, but just a few points below the base rate can be clearly seen in savings of several thousand francs a year.
These in turn accumulate over the entire term of the mortgage to a large sum that you certainly do not want to pay to a bank unnecessarily.