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Old 10.09.2019, 14:11
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Re: Mortgage question. First tranche expires

That is rubbish. You take a mortgage with the bank, lets say Chf 500'000.-- at 1% for 10 year, the bank goes to the money markets and borrows Chf 500'000.-- for 10 years at -0.5%, the spread or the commission for the bank is 1.5%, minus a few fees and expenses.


The mortgage is back to back so if you want to get out for whatever reason, after say 5 years, they will calculate 1.5% on Chf 500'000.-- x 5 years.



Beware, a lot of banks have clauses not allowing you to get out to change to a different provider, i think the UBS mortgages are a bit like this, you really need to read and understand the paperwork, the banks are lower than snakes in general.
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