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Old 13.10.2021, 17:18
LuganoPirate LuganoPirate is offline
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Re: Clarification on Mortgages

The 80% mortgage talked about is the amount a bank will lend on their valuation of the property, which is often less than the sales price. Eg. CHF 1m property, but bank valuation is only CHF 900,000, you'd have to find an extra CHF 100,000. It is possible with some banks to borrow the full 80% of the sale price, but the second tranche will be at a higher interest rate, currently 2.76% with Raiffeisen.

If you're buying a second home to rent out, the bank will take into account the rental income as part of their affordability calculation. However, there is no reason why they would charge you more interest than they would for a primary residence. At least not in my experience.

I'd also suggest getting 3 offers. From the bank you like and 2 others. Then you can go back and say, "look I want to be with you, but I have better offers here, will you match it"? Chances are they will.
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