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Old 03.08.2020, 19:24
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How to get a mortgage when on RAV but with cash?

Dear Forum,

Would like to get some advice for similar cases to where I stand.

I am currently unemployed (well about to be from an interim job). I would like to reduce my cost of living by moving out from my rental apartment and buy an apartment in ZH.

I have some cash that I can use for downpayment however I wonder if I can apply for mortgage when I am in RAV even if I have the necessary cash? According to comparis I cannot.

It is an interesting dilemna...thanks in advance for sharing the experiences...
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Old 03.08.2020, 19:26
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Re: How to get a mortgage when on RAV but with cash?

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Dear Forum,

Would like to get some advice for similar cases to where I stand.

I am currently unemployed (well about to be from an interim job). I would like to reduce my cost of living by moving out from my rental apartment and buy an apartment in ZH.

I have some cash that I can use for downpayment however I wonder if I can apply for mortgage when I am in RAV even if I have the necessary cash? According to comparis I cannot.

It is an interesting dilemna...thanks in advance for sharing the experiences...
hahahhahaha

Unless you can pay cash, forget it.
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Old 03.08.2020, 19:34
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Re: How to get a mortgage when on RAV but with cash?

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Dear Forum,

Would like to get some advice for similar cases to where I stand.

I am currently unemployed (well about to be from an interim job). I would like to reduce my cost of living by moving out from my rental apartment and buy an apartment in ZH.

I have some cash that I can use for downpayment however I wonder if I can apply for mortgage when I am in RAV even if I have the necessary cash? According to comparis I cannot.

It is an interesting dilemna...thanks in advance for sharing the experiences...
How do you think to convince the bank that you will pay off the mortgage? An apartment in ZRH is mostly expensive and you need to have 20% in cash, even if banks would ignore your being on RAV.

Rent a room in a shared apartment to save rental cost?
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Old 03.08.2020, 19:51
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Re: How to get a mortgage when on RAV but with cash?

OPs profile says occupation finance. OP will either stay unemployed or this is a - not very good - hoax.
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Old 03.08.2020, 20:04
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Re: How to get a mortgage when on RAV but with cash?

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I would like to reduce my cost of living by moving out from my rental apartment and buy an apartment in ZH.
How much rent do you pay now?
What do the calculations look like, that could show whether you'd have more or less expenses for accommodation, if you bought a place?
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Old 03.08.2020, 20:34
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Re: How to get a mortgage when on RAV but with cash?

Forget it. No bank is going to give you a mortgage when you're not earning a salary. Either find a cheaper apartment to rent or as roegner said rent a room only.
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Old 03.08.2020, 20:43
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Re: How to get a mortgage when on RAV but with cash?

You certainly can apply, but it is doubtful any of the mainstream banks will trust you with their money.
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Old 03.08.2020, 23:24
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Re: How to get a mortgage when on RAV but with cash?

This was a genuine ask for help but some did not understand. A big disappointment in terms of attitude.

Note: There is no guarantee that one will keep the job 2 months after getting the mortgage, is there?
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Old 03.08.2020, 23:27
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Re: How to get a mortgage when on RAV but with cash?

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How much rent do you pay now?
What do the calculations look like, that could show whether you'd have more or less expenses for accommodation, if you bought a place?
It will be considerably less thats why I started inquiring this option. Hoping to find a new job in the meantime.
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Old 04.08.2020, 06:35
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Re: How to get a mortgage when on RAV but with cash?

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This was a genuine ask for help but some did not understand. A big disappointment in terms of attitude.

Note: There is no guarantee that one will keep the job 2 months after getting the mortgage, is there?
We understood, but it seems you didn't. You said comparis said you couldn't get one; we just confirmed it.

If you're going to become unemployed the last thing you should be doing is looking to buy an apartment. As said, look for a cheaper one to rent or even just rent a room somewhere or sublet in someone else's property. Once you have a permanent job then you can look at buying.

And no, there's no guarantee you won't lose your job after a couple of months but if you suspect that might happen again you shouldn't be looking to buy in the first place. If it's not expected and happens, well that's a risk the bank takes when they decide to give you a mortgage. But they're not going to take a risk on an unemployed person maybe finding a new job here. Especially in the current coronavirus situation. That's just a risk too far as far as they're concerned.
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Old 04.08.2020, 06:37
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Re: How to get a mortgage when on RAV but with cash?

Generally banks will expect you not just to have a job, but also to not be in your probationary period and have held the job for a period of time before considering you for a mortgage.


Also take into account that when you buy, your expenses shift. Sure, maybe the monthly payments go down, but then you will be paying:
* chimney sweeping (in some cases every 6 months, to the mandatory monopoly company)
* maintenance (repainting a small house's exterior in CH can cost 20-30k)

* repairs (a leaky pipe can cost several k just to find the leak)
etc...


The only banks which I think will consider you for a mortgage on RAV are the private banks. If you have enough cash to pay the house in full, they will most likely give you a mortgage...
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Old 04.08.2020, 07:04
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Re: How to get a mortgage when on RAV but with cash?

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Generally banks will expect you not just to have a job, but also to not be in your probationary period and have held the job for a period of time before considering you for a mortgage.


Also take into account that when you buy, your expenses shift. Sure, maybe the monthly payments go down, but then you will be paying:
* chimney sweeping (in some cases every 6 months, to the mandatory monopoly company)
* maintenance (repainting a small house's exterior in CH can cost 20-30k)

* repairs (a leaky pipe can cost several k just to find the leak)
etc...


The only banks which I think will consider you for a mortgage on RAV are the private banks. If you have enough cash to pay the house in full, they will most likely give you a mortgage...
Actually twice the amount you want to borrow and you will find that you have to have a clean record and have banked with them for over two years.
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Old 04.08.2020, 07:17
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Re: How to get a mortgage when on RAV but with cash?

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Dear Forum,

Would like to get some advice for similar cases to where I stand.

I am currently unemployed (well about to be from an interim job). I would like to reduce my cost of living by moving out from my rental apartment and buy an apartment in ZH.

I have some cash that I can use for downpayment however I wonder if I can apply for mortgage when I am in RAV even if I have the necessary cash? According to comparis I cannot.

It is an interesting dilemna...thanks in advance for sharing the experiences...

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This was a genuine ask for help but some did not understand. A big disappointment in terms of attitude.

Note: There is no guarantee that one will keep the job 2 months after getting the mortgage, is there?
Not sure if serious.

1) You are now unemployed and want to "save money" by putting 200k+ CASH into buying an apartment? Why don't you just move to a cheaper rental apartment and keep the cash for when it is most useful (like, if you don't find a job for ages)?

2) You are confused as to why a bank looks for stable employment and income before giving out a mortgage, because you think: "anyone can lose a job 2 months later"? Even a child would understand why a bank looks for stable income and employment to minimize risk before giving out a ton of money.

These two things make me think your levels of common sense are seriously lacking, or that you have a suspicious amount of cash lying around and need to get rid of it fast.
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Old 04.08.2020, 08:06
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Re: How to get a mortgage when on RAV but with cash?

The OP could post a request for a mortgage proposal on a website to solicit offers (Angebot) from private lenders and also bank and insurance company lenders. The below website is a marketplace for mortgage offers but there might be others:



https://hypobörse.ch/
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Old 04.08.2020, 11:57
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Re: How to get a mortgage when on RAV but with cash?

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This was a genuine ask for help but some did not understand. A big disappointment in terms of attitude.

Note: There is no guarantee that one will keep the job 2 months after getting the mortgage, is there?
One can only assume that your association with the financial world is very tentative... because it is the only explanation for your idea to cut costs by taking on a major financial commitment with the strong possibility that you will be in financial difficulty within the next two years.

If you have been even been scanning the financial sections of the newspapers over the past several weeks you would know that we are about to head into possibly the worst recession you are likely to experience in your life time, that finance has been hit hard in past recessions and is likely to be again this time. So the change of being able to easily find a new job in the sector is very poor.

Generally speaking Loan Officers, like everyone else have a desire to keep their job like everyone else. And they all know that the best way to that is to avoid giving out high risk loans. So the chances of finding a person will to put their job on the line to give you a mortgage are pretty well zero.

Now I’m sorry you are not getting the kind of response you wanted, but when you start out with a proposal to cut costs by making a major financial commitment rather than actually trying cut costs, you should not be surprised that there are few people willing to validate your ideas.
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Old 04.08.2020, 12:36
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Re: How to get a mortgage when on RAV but with cash?

I can imagine the OP had many talks with Swiss local people.
Specially where i work (banking sector):

Why to rent a 2,5 for 2500 when you can buy a 5,5 for 1000/month since you just need to pay the maintenance.

But that is tricky. I heard that story for 9 years. True story; i threw away 30 000 * 9 chf in rent but i can leave any moment (not any moment but according to swiss law)
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Old 04.08.2020, 15:25
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Re: How to get a mortgage when on RAV but with cash?

It depends on how much cash you have. Say you're looking to spend 500,000 and you have 300,000 plus maybe a 2nd and 3rd pillar pension pot. The bank may well loan you 350K but ask you to put the other 150k into one of their funds, as well as the pension pots.

Never say it can't be done. I've never had a "job" per se but always got mortgages - and many more than one - direct from the banks at good rates of interest.

It depends on how it's structured so my best advice is make an appointment with a few banks, for example Raiffeisen, the Cantonal bank and perhaps UBS. You'll get an idea of what they may be able to do. If one says no it doesn't mean the other will, so you've nothing to lose by trying..

Good luck with it.
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Old 04.08.2020, 15:39
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Re: How to get a mortgage when on RAV but with cash?

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This was a genuine ask for help but some did not understand. A big disappointment in terms of attitude.

Note: There is no guarantee that one will keep the job 2 months after getting the mortgage, is there?
unless you have
a) a job
b) a 20% deposit
c) been in that job for at least 2 year
then just keep on dreaming
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Old 04.08.2020, 15:56
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Re: How to get a mortgage when on RAV but with cash?

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Never say it can't be done. I've never had a "job" per se but always got mortgages - and many more than one - direct from the banks at good rates of interest.
I think the OP case is slightly different. Being self-employed with an independent source of income is quite different from losing a job and getting on RAV. I think it was pointed out too many times - this is a high risk loan and as such in this country, in this environment will likely not happen. More importantly, the OP doesn't want it to happen, but (s)he doesn't know it yet.
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Old 04.08.2020, 15:59
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Re: How to get a mortgage when on RAV but with cash?

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I can imagine the OP had many talks with Swiss local people.
Specially where i work (banking sector):

Why to rent a 2,5 for 2500 when you can buy a 5,5 for 1000/month since you just need to pay the maintenance.

But that is tricky. I heard that story for 9 years. True story; i threw away 30 000 * 9 chf in rent but i can leave any moment (not any moment but according to swiss law)
I tend to agree... Have always views it as almost parallel options - pay rent or pay interests. Yes deductible I know, but also preventing me to invest elsewhere.

It's not for everyone and certainly not for OP in current situation.

OP do your calculations very well about how much "saving" you can really do with buying. There is all sorts of costs you may not be considering.
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