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Old 13.10.2021, 16:59
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Re: Clarification on Mortgages

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What is not clear to me over all is the following:

Let's say I ask 1M to the bank as 80% of the property value, so I anticipate 200k as the 20%.
Should I also anticipate from, as cash, all the fees, let's say 4% so in total I need to have 24% ready in my bank account.

In other words the bank will not provide to me the 80% + additional costs like fee, notary cost and so on?

Thank you

The bank could roll up the fees into the mortgage if the property was selling under valuation. Which currently is lets say impossible. You currently may have to bridge the delta between the banks valuation and the selling price or almost certainly go into the banks tolerance margin.

You can have 10% cash, and you can pledge 10% from your pensions. If the bank agree to this. Essentially the 10% is the safety net and if you default the bank will take the money from your pension. Its interesting for the bank and you I think. You only put down 10% and the low interest rates means the repayments are ok. You free up your cash for other things.

The notary fees and taxes depend where you live. If you live in a kanton which has state notary's, the fees are quite cheap - a few thousand (Zurich for example). If you live in a kanton where its private notary, the fees will be quite high - perhaps 4% (although in percentage terms still low compared to other countries)
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