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Old 19.07.2020, 10:54
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Personal loan / financing question

Hi all,

This forum is always source of creative ideas & in that spirit I have one, since I cannot figure it out alone.

Situation is specific: Depending of the evolution of financial markets & real estate I am considering to buy summer house abroad next to the beach sometimes autumn toward Christmas. We always wanted to have one & it is nice opportunity. I would have cash to pay it - but given current conditions I would prefer to pay it through financing. As we are paying very high taxes, extra cash I have end of every year is going as catch up contribution to second pillar where is reinvested in portfolio of assets. This gives me advantage of 40% plus growth in portfolio every year. I am also homeowner. Now this whole thing is bringing very interesting situation toward financing:

1. Mortage is impossible, as Swiss banks do not finance realestate aborad especially in country of interest

2. Mortage in country of interest is impossible (hesitant to land out to foreign residents) & interest rates are fairly high there (not much better than option 4), plus too much hassle, plus currency risk (though given I will be renting it out & value is in EUR last one is debatable but you can see I don't like this option so much )

3. There is possibility to lock in certain amount in the investment portfolio of my choice in a Swiss bank & against that take leverage loan (70% of locked in amount) at favorable interest. Problem with this is that it will drain lot of cash for catch up contribution as this money has to stay locked in as a guarantee to the bank. That is than also not so good

4 Personal loans at relatively high interest rates (4.4% from companies or 3.6 % at crowdlanding but given I can offset interest against marginal tax rate might not be so bad say in the range of 2.5%). Problem with this is that maximal amount of personal loan is 250'000 CHF (some companies offer 350k are they legit?), and I am looking for something in a range of 500'000k.

Three questions:

1. Does anyone has any idea of other sources of financing at reasonable interest for this? (would be happy to put summer home as collateral or to commit to guarantee from my 2nd pillar as a collateral against the loan amount if this is even possible possible). Also creative solutions welcome (e.g., register GmbH/Ag and ask loan for realestate abroad which I would rent out , not sure banks would like this)? We own one company that makes profit but it has different mission vs. tourism, prefer to keep things clean.

2. Can I take 2 personal loans at two different companies if my credit rating is A+ to make it up to 500k?

3. Does anyone knows someone who I can pay for advice - can help me with this, but good one ? Advises I was getting so far were less than what I figured out alone - so not helpful.

Thanks for help!

Last edited by 3Wishes; 19.07.2020 at 23:02. Reason: fixed spacing
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Old 19.08.2021, 09:17
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Re: Personal loan / financing question

Great question - would be curious on what you did? We are in a similar situation…
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Old 19.08.2021, 11:04
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Re: Personal loan / financing question

Tinderstick,



"3. There is possibility to lock in certain amount in the investment portfolio of my choice in a Swiss bank & against that take leverage loan (70% of locked in amount) at favorable interest. Problem with this is that it will drain lot of cash for catch up contribution as this money has to stay locked in as a guarantee to the bank. That is than also not so good"


Why would it be so bad to have this money locked into an investment portfolio if it makes money for you? If I look at our own portfolio at Interactive Brokers we are able to take out a margin loan at 1.5% which even can come down close to 1% for larger amounts. In the meantime I am still making avg. 8% long term returns.


Please let me know if you ever find an accountant/fiducaire who can advise in this sort of situations (instead of pushing their own funds and life insurance crap).
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Old 19.08.2021, 12:34
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Re: Personal loan / financing question

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Great question - would be curious on what you did? We are in a similar situation…
This probably depends on where. We recently bought something in Italy, mortgage from Italian banks possible for non-residents at acceptable rates. Might involve lots of paperwork and due diligence, depending on bank.
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Old 26.10.2021, 12:34
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Re: Personal loan / financing question

Bump to this thread. Have a question similar to OP on private loans.

After covid restrictions and general economic slowdown, I've seen some real estate opportunities emerge back home. Of course, I cannot use a Swiss mortgage, but between savings and a private loan something can be accomplished.

I would need a lot less than OP, well within the range of consumer private loans. I already ran a few credit simulations on Migros Bank and noticed something curious: the max credit for C permit is significantly lower than B permit. I'd assume it's the opposite. B Vs C becomes relevant because because I can ask for a C next by July 1st. I'm visiting a Migros Bank branch later this week and planning to ask this. Maybe it's just a mistake in the webpage.

But, any other trustworthy business besides Migros? Thanks, I know how to use google, the problem is that dozens of shady looking business occupy the 1st page of results. Any recommendation?
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Old 06.11.2021, 11:49
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Re: Personal loan / financing question

I just took a personal loan for 48 months but I plan to repay it in 24. Can I simply pay back every month a double amount ? i.e. instead of paying 1000 CHF for 48 months pay 2000 CHF for 24 ?
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Old 06.11.2021, 12:13
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Re: Personal loan / financing question

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I just took a personal loan for 48 months but I plan to repay it in 24. Can I simply pay back every month a double amount ? i.e. instead of paying 1000 CHF for 48 months pay 2000 CHF for 24 ?
No. Check with your bank first and check what your contract says on early repayment.

Last edited by roegner; 06.11.2021 at 13:06.
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Old 06.11.2021, 12:26
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Re: Personal loan / financing question

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I just took a personal loan for 48 months but I plan to repay it in 24. Can I simply pay back every month a double amount ? i.e. instead of paying 1000 CHF for 48 months pay 2000 CHF for 24 ?
Depends on the bank. A few years ago, Migrosbank would allow you to pay back your personal loan at any time without penalty.

Someone else on this forums somewhere said that nowadays other banks also allow it too.
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