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-   -   Mortgages (https://www.englishforum.ch/finance-banking-taxation/303710-mortgages.html)

Marog 19.04.2021 11:33

Mortgages
 
Hello,

I was trying to figure out how mortgages work in Switzerland. I asked UBS and they said I need to select a property first and then the will discuss. In the UK I could approach a bank and get a mortgage in principle but that does not seem to be the case here. I also have a rental income from my Property in the UK to which again UBS said we can discuss !!!

Seems a bit old fashioned or am I missing something ?

UBS did point me to some online calculator which work out how much I can borrow but it's not the same as a mortgage in principle. I was also wondering if I should approach a mortgage broker instead of a bank.

newtoswitz 19.04.2021 13:06

Re: Mortgages
 
They don't do a mortgage in principle here like they would in the UK, since they often don't accept the purchase price as the valuation for mortgage purposes.

But a smaller bank will almost certainly be happy to see you and give you an indication of the amount you can borrow; we did that with SGKB.

Alternatively, just pick some random property in your price range and say you're thinking of buying it.

Marog 19.04.2021 17:12

Re: Mortgages
 
Quote:

Originally Posted by newtoswitz (Post 3297744)
They don't do a mortgage in principle here like they would in the UK, since they often don't accept the purchase price as the valuation for mortgage purposes.

But a smaller bank will almost certainly be happy to see you and give you an indication of the amount you can borrow; we did that with SGKB.

Alternatively, just pick some random property in your price range and say you're thinking of buying it.

Thanks I will try SGKB, I did think of picking a property at random but it turns out that with UBS from the fourth application on there is a fee.

BTW about valuations is there an equivalent of Nethouseprices here in Switzerland where I can check the historic price of a specific property ?

xaxa 21.04.2021 13:53

Re: Mortgages
 
You should have no problem approaching your home bank for initial consultation, where they explain how the system works. You can approach them with any property within your budget and they will do a simple quick assessment. I have good experience with Postfinance.



The rules which define how much you can borrow are simple ones:
1. You need to provide 20% of the price as a deposit. Of this 10% must be your liquid money (ona bank account, etc.). The remaining amount may come from a pension fund.
2. The yearly property costs must not exceed 33-35% of your gross income (your salary before tax, AHV, etc.). The property cost are calculated as a fictional amount 5% interest + 1% nebenkosten + 1% repayment (amortization)
3. Typically, only max 1% of the mortgage amount must be repaid per year. LTV must be reduced below 67% within 15 years and normally afterwards the loan is not repaid further (basically becomes interest only)


There are also many calculators only which calculate the max amount you can borrow, the repayments, etc for you, you can try comparis.ch or moneypark.ch too, they all will give you the same results.

xaxa 21.04.2021 14:01

Re: Mortgages
 
Given the super low rate of property transactions the historical prices are of limited use.



You can see historical asking prices here: https://www.comparis.ch/immobilien/m...adId=19638903t


This site aggregates asking prices from published ads. However keep in mind the history here starts around 2011 (I estimate). Keep in mind the prices are mostly negotiable and negotiated amount will not be shown.


Moneypark also allows you to view historical prices around the address you select: https://moneypark.ch/immobilien/plattform/start
It is pretty awkward, but it goes much more back in the past.



There is no detailed public information about sold prices as in UK. But there are aggregate statistics for Kanton ZH here: https://www.zh.ch/de/planen-bauen/ra...ienpreise.html

Mind you they are update with a delay of at least 2 years.


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