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Old 04.03.2021, 10:45
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House purchase while on unemployment...

I'm going to contact a few banks, however, I wanted to inquire here if someone has had any experience with making a house purchase while between *work*. I have plenty of contributions to my pension thus far and saved cash also. Would they say fine, but you need to pay significantly more than the 20% down? Likely.. The house isn't very expensive, so this would not be an issue, to be honest.
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Old 04.03.2021, 10:51
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Re: House purchase while on unemployment...

If you need a mortgage, you will need a job.

Tom
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Old 04.03.2021, 11:03
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Re: House purchase while on unemployment...

You say between "work". If you already have a contract for the new job, that would probably be ok with the banks. If not, the above would apply.
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Old 04.03.2021, 15:37
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Re: House purchase while on unemployment...

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If you need a mortgage, you will need a job.

Tom
Or assets
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Old 04.03.2021, 15:43
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Re: House purchase while on unemployment...

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Or assets
To the extent that you don't need a mortgage.
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Old 04.03.2021, 16:33
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Re: House purchase while on unemployment...

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To the extent that you don't need a mortgage.
Ha, that's a good one.

My logic was paying more than usual into the property and see how they felt about that...
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Old 04.03.2021, 16:36
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Re: House purchase while on unemployment...

UBS will accept a signed employment contract starting in the future if your partner is working/acceptable salary etc. At least they did in the past but it depends on the relationship with the bank/advisor.
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Old 04.03.2021, 16:38
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Re: House purchase while on unemployment...

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Ha, that's a good one.

My logic was paying more than usual into the property and see how they felt about that...
Non status mortgages never took off in CH
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Old 04.03.2021, 16:39
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Re: House purchase while on unemployment...

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Ha, that's a good one.

My logic was paying more than usual into the property and see how they felt about that...
But he‘s right.

If you don‘t have passive income that covers the mortgage payments and you don‘t have employment income, how are you proposing to pay the quarterly interest, annual amortisation and any ongoing running and maintenance costs? Paying a chunk of this upfront is never going to fly. Additionally, banks have to do an affordability check that your income is 3x the cost of the mortgage amortisation, interest as if it were at 5% regardless of the rate you pay and 1% of the property cost as depreciation. In general terms that means you need an annual income of at least 20% of the property price (assuming 20% deposit).
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Old 04.03.2021, 23:12
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Re: House purchase while on unemployment...

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To the extent that you don't need a mortgage.
Right, but you may want one nevertheless for whatever reason.
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Old 10.03.2021, 09:02
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Re: House purchase while on unemployment...

So I'm a bit wiser after making a trip to the bank. So the mortgage is out, I felt even if I asked for a 1chf one, they could not offer it.

So, I've just realized I can use my pensions and Piller 3a contributions also, so my position is even better than I thought. I should be able to easily afford a nice 4.5 apartment now.

I presume withdrawing the pensions to buy property, even without a mortgage, should not be an issue? I realize there is a tax hit on that also.

The prospect of having no mortgage is attractive, to say the least... At least for the next few years.
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Old 10.03.2021, 18:55
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Re: House purchase while on unemployment...

We bought an apartment in Zürich and we just made the loan as I did not have a fix job, just temporary one. My gf did so that helped. So with no job in Zürich I don’t think it’s possible to be honest...
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