ALL ABOUT MORTGAGES – MORTGAGE INTEREST RATES, MORTGAGE COMPARISONS AND THE CALCULATION OF YOUR IDEAL MORTGAGE
MAKING DREAMS COME TRUE CAN BE SO SIMPLE.
WHICH MORTGAGE IS THE BEST FIT FOR ME?
Let us start at the beginning: What is a mortgage? In most cases you can only cover a part of the purchase price with your own capital. The rest is financed by a mortgage. This loan is collateralized with the property. The borrower’s note by means of lien serves as security for the bank. There are different types of mortgages, such as LIBOR (until the end of 2021), SARON, fixed-rate mortgages as well as buildings loans for new buildings or modifications in the form of a current account. Fact is that you need to finance at least 20% of the purchasing price or real estate value with your own equity. You can cover up to 80% by mortgage. Some banks also offer an enfeoffment of up to 90% if you deposit your pension fund or third pillar insurance monies as security. Banks distinguish between first mortgages which can amount to up to 67 % of the real estate value. This mortgage must not necessarily be repaid. The remaining 13% of the real estate value can be financed by a second mortgage. This portion must be repaid within 15 years and amortized before reaching retirement age. Bank offers can vary a great deal in terms of interest rates and own capital employed. As independent partners we assist you in finding the right bank for you, in keeping the overview and in establishing the right financing strategy early on.
WE MAKE YOUR DREAMS COME TRUE
We have often arranged mortgages in cases that seemed hopeless.
We are a team of experts that is well known by the banks and with whom they collaborate at eye level.
We keep the overview in the mortgage jungle and get the best offer for you.
WHICH MORTGAGE CAN I AFFORD?
We would like to explain to you by means of some examples some of the ‘classical’ mortgage cases. Fact is: Everything is possible; with Kovacs Experience dreaming is explicitly welcome!
HOW MUCH EQUITY DO I NEED TO BRING?
Let’s assume you want to buy a house that is listed with a price of 1.2 million CHF. You have a household income of 220’000 CHF gross. In case of a loan of 80% and a portability of 32% you need equity of 240’000 CHF. What is important: Together we make your dream come true.
We have heard often «the bank did not take me or my request seriously at all». This is where Kovacs Experience enters the game to assist you. Banks do take our requests seriously and we are well known and acknowledged, together with you we try to find solutions beyond the current guidelines and get the best possible mortgage for you. We think outside the box and find ways and possibilities.
I AM AN EXPAT –
WHICH MORTGAGE IS THE BEST FIT FOR ME?
Oftentimes expats have an above average income. However, we often see that equity is rather scarce as much capital is blocked abroad or invested in real estate. On the other hand, you typically build up a high level of pension fund assets due to high income in a very short time.
Let’s therefore assume, the purchase price of your dream real estate is 1.2 million CHF, you have equity of 140’000 CHF, pension fund assets of 130’000 CHF and an income of 300’000 CHF.
In this case a mortgage with financing of 90% is conceivable, including pledging of your pension fund assets. For the amortization of the increased 2nd mortgage, it is recommended to amortize via 3rd pillar insurance with risk coverage, as banks generally require cover for death risk for loan-to-value ratios above 80%.
You find this sounds way too complicated and you would prefer to put all this work into the hands of trusted experts, whilst you can take care of other important things in life? We know the Swiss mortgage and real estate market and thanks to many years of experience we can assist you with the realization of your dream home.
WE ARE A FAMILY – WHICH MORTGAGE IS OUR BEST FIT?
It is often the case that one parent works full time, while the other parent takes care of the children and has reduced workload working part-time.
Let’s assume, you have found a real estate with a purchase of 800’000 CHF. In this case it would be important that you can bring enough equity. For this case we know the best solutions to realize mortgages that initially seem unfeasible. How about the use of your 2nd and 3rd pillar insurance or the inclusion of the family?
In this example we assume that you can bring 160'000 CHF equity. Your current joint income is 125'000 CHF. The portability is now 38%, it used to be 31% with full workload of both borrowers, what makes financing possible with certain banks thanks to your income potential (future increase in workload of one parent).
We assist families in realizing the dream of owning a home.
MORTGAGE BASICS - EXPLAINED IN A SIMPLIFIED WAY.
As a general rule, you should contribute 20% of the property price as equity
so that the bank will finance the remaining 80%.
Profitable elements that are often overlooked are the use of 2nd pillar and 3rd pillar insurance monies (pension fund assets) for the purpose of a real estate acquisition.
Expats in particular are baffled – in Switzerland it is not common and necessary to pay off 100% of the property value, but only a proportion of it.
Interest rates have been at an extremely attractive all-time low for some time now. We will find the best offer that exactly fits your financing strategy, your dreams and your wishes.
Kovacs Experience supports me in all aspects of taxes, insurance, real estate and financing. Since I get everything from a single source I feel secure, comprehensively advised and I save a lot of time.