The required debt
First, calculate how much debt you need. A list of the existing equity capital is important for this. Enter a list of how much savings you have, how much can come from an early inheritance or a gift, and whether you can withdraw money from the second or third pillar of social security (and if so, how much).
The available equity results from the sum of these amounts. You start from this sum and multiply it by four. This in turn results in the debt capital that can be raised through a mortgage. An example: You have CHF 50,000 in equity at your disposal.
Multiplied by four, this results in CHF 200,000. This means that you can count on a mortgage of CHF 200,000 if you bring in the aforementioned CHF 50,000 equity. Since the burden here is over 65 percent, the mortgage is divided into a first and a second mortgage.
The latter must be amortized on a fixed date, i.e. paid back. As a rule, retirement is the latest point in time, and banks are reluctant to finance it.
The portability calculation
Anyone who has ever asked about a mortgage will also use the term? Portability calculation? have heard. It is used to calculate how much home You can afford at all. The first and second mortgages are subdivided based on the purchase price and the possible own and external funds.
The interest is then calculated, the amortization deducted and the ancillary costs determined. The bank uses this to calculate the running costs that you will face each year. These, in turn, determine how high your annual income must be so that you can finance it as desired.
Financing partner wanted!
If you are looking for a partner, you usually do not commit yourself lightly. Someone you want to be with for many years just has to "fit". This also applies to the financing partner of your mortgage; after all, you are bound to it for ten or even twenty years.
In the past it was common to simply go to the house bank and take out the mortgage there, but it is no longer recommended today. It makes a lot more sense to take a closer look at the competition from the house bank. Also note the cantonal banks, the insurance companies and above all the online banks.
Judge with the neotralo.ch mortgage comparison and find the financing partner that suits you! Before making a decision, consider these points:
- Be sure to get multiple offers (at least four to five)!
- Compare the offers and choose who might want to renegotiate the conditions.
- Try to acquire some expertise yourself so that you can negotiate on an equal footing.
- Talk to the advisors of the selected providers.
- Decide not only on the basis of low interest rates for a provider, but also compare the other conditions (e.g. termination options).
Submit the loan application: Please think of all documents
The loan application will only be processed if all documents are available. Therefore, it makes sense to inform yourself in advance about the necessary documents so that you can show a lot of them during a consultation. In any case you need at least these documents:
- current tax return
- Real estate documents
- Extract from land register and draft sales contract
- Building insurance estimate
Not all documents will be immediately available, which is especially true if you want to get a rough overview of the financing options.
Above all, the land register extract, the draft of the purchase contract and the estimate of the building insurance are only available if you are actually considering the purchase of a property and are already in negotiations with the seller.
After the comprehensive consultation, you know exactly whether lending and portability are possible as intended. You will then receive the final acceptance or rejection within a few days.
Choose the right mortgage
With most providers, customers have a choice of what type of mortgage they want to take out. There are fixed, variable and Libor mortgages. They all have different advantages and disadvantages, as we explained earlier.
You just need to know which model suits you, and you should be able to assess yourself well. Are you more of a risk-taking type or do you need a high level of security? The following tips will help you choose the right mortgage and put home finance on a safe footing:
- Fixed-rate mortgage: This is suitable for everyone who knows their budget exactly and who is afraid of risk. You play it safe and are protected against unpleasant surprises.
- Fixed-rate mortgage or Libor mortgage: At times of low interest rates, choose a fixed-rate mortgage and let the interest rate be fixed for ten to twenty years. The Libor mortgage is suitable for anyone who is willing to take a little risk and who does not mind if interest rates can rise after a low phase.
- Rising interest rates: If you can expect interest rates to rise as soon as you sign the mortgage contract, a fixed rate mortgage is the best choice. This will secure the current low interest rates.
- High interest rates: If you are not waiting for interest rates to fall and now want to conclude your mortgage contract, a variable mortgage is the best choice. If interest rates fall, you will benefit directly from it.
- Falling interest rates: If you expect falling interest rates, a Libor or variable mortgage is the best choice. This means that they adapt to the interest rate level and have the option of having the agreed high interest rates adjusted.
The decision as to which offer is best for you and which bank will be your future partner should be carefully considered.
Use the opportunity to compare different providers here on neotralo.ch and follow the old motto:? Therefore, check who binds forever !? Even if you don't commit yourself forever, with the wrong financing partner, ten years can be an eternity.
