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swiss mortgages

Hi folks.


Before I start booking meetings with banks I have a quick question....


I've heard a rumour that the swiss banks only give mortgages with a minimum downpayment of 20%. Is this true?


I'm looking to buy a house in France with a swiss mortgage (first time buyer) but 20% is a hefty downpayment on properties around 400,000 CHF. I dont carry that kind of cash usually.


Any advice


Thanks


John

The text you are quoting:

Hi folks.


Before I start booking meetings with banks I have a quick question....


I've heard a rumour that the swiss banks only give mortgages with a minimum downpayment of 20%. Is this true?


I'm looking to buy a house in France with a swiss mortgage (first time buyer) but 20% is a hefty downpayment on properties around 400,000 CHF. I dont carry that kind of cash usually.


Any advice


Thanks


John


john gallagherAug 10, 2011 @ 12:02
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Re: swiss mortgages
Post 1


"Personal Capital


Amount of the property value which is directly financed in cash by the buyer. The mortgage provider usually requires 20% personal capital. Apart from assets and savings, pension savings from the 2nd or 3rd pillar can be used."


http://en.comparis.ch/hypotheken/info/glossar/eigenkapital.aspx

The text you are quoting:


"Personal Capital


Amount of the property value which is directly financed in cash by the buyer. The mortgage provider usually requires 20% personal capital. Apart from assets and savings, pension savings from the 2nd or 3rd pillar can be used."


http://en.comparis.ch/hypotheken/info/glossar/eigenkapital.aspx


Translator, Aug 10, 2011 @ 12:12
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Re: swiss mortgages
Post 2

Hi John,


As you intend to buy your house in France, wondering whether this would apply to you?


I know that for someone who works in Geneva and lives in Ferney, French Banks offer a mortgage in 'foreign currency' ('devise' in French) for property located anywhere in France.


I understand that the downpayment in France is much lower; the interest rates not higher than elsewhere; and the exchange rate of the 'devise' CHF to EURO interesting enough. 


Hope it applies to you!


Sary


 

The text you are quoting:

Hi John,


As you intend to buy your house in France, wondering whether this would apply to you?


I know that for someone who works in Geneva and lives in Ferney, French Banks offer a mortgage in 'foreign currency' ('devise' in French) for property located anywhere in France.


I understand that the downpayment in France is much lower; the interest rates not higher than elsewhere; and the exchange rate of the 'devise' CHF to EURO interesting enough. 


Hope it applies to you!


Sary


 


nomades, Aug 10, 2011 @ 12:49
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Re: swiss mortgages
Post 3

In Switzerland, you need to put down at least 20% of your money - However some banks require a minimum of 40%.  Also you need to allow an extra 5% for the Notary fees and stamp duty.


All is not lost if you don't have the 20% down payment.  You can borrow it for the purposes of house purchase by pledging your own Swiss pension plan. 


If you are buying in France, different rules apply.  A friend of mine was offered a 100% French mortgage a year or two ago.  It was fixed at 3% for 20 years. 


He ended up borrowing only 90% as he had the 10% in cash.  It's a pity he converted the cash to euros, as the euro has since collapsed against the Swiss Franc.  If he also borrowed in Swiss Francs, then he really lost out on the exchange rate.

The text you are quoting:

In Switzerland, you need to put down at least 20% of your money - However some banks require a minimum of 40%.  Also you need to allow an extra 5% for the Notary fees and stamp duty.


All is not lost if you don't have the 20% down payment.  You can borrow it for the purposes of house purchase by pledging your own Swiss pension plan. 


If you are buying in France, different rules apply.  A friend of mine was offered a 100% French mortgage a year or two ago.  It was fixed at 3% for 20 years. 


He ended up borrowing only 90% as he had the 10% in cash.  It's a pity he converted the cash to euros, as the euro has since collapsed against the Swiss Franc.  If he also borrowed in Swiss Francs, then he really lost out on the exchange rate.


Marcus T, Aug 14, 2011 @ 10:02
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Re: swiss mortgages
Post 4

Hello John,


You can contact us and I will bring you in contact with one of my college who can give you a free of charge independent advise on Mortgages. 


check www.harmelingconsultancy.com for contact details.


Regards, Raymond

The text you are quoting:

Hello John,


You can contact us and I will bring you in contact with one of my college who can give you a free of charge independent advise on Mortgages. 


check www.harmelingconsultancy.com for contact details.


Regards, Raymond


rharmeling, Aug 14, 2011 @ 10:30
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Re: swiss mortgages
Post 5

i found this message back in 2011, not sure if anyone can share your experiences or give me any tips on choosing the mortgage? What is the proposed insurance company?


if i need someone professonally to negotiate the selling price of the appartment, where to find them?


thanks a lot for your comments.

The text you are quoting:

i found this message back in 2011, not sure if anyone can share your experiences or give me any tips on choosing the mortgage? What is the proposed insurance company?


if i need someone professonally to negotiate the selling price of the appartment, where to find them?


thanks a lot for your comments.


Jessica G, Dec 6, 2019 @ 13:41
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Re: swiss mortgages
Post 6

Hello,


I recommend you this guy, he got a mortgage for me from helvetia with good rate (in 2017)


 


Kevin Rossier



Hypo Advisors SA
rue Joseph-Pasquier 19 | 1203 Genève
mobile +41 79 830 85 51
phone +41 22 347 24 24
[email protected]
www.hypo-advisors.ch


 


The text you are quoting:

Hello,


I recommend you this guy, he got a mortgage for me from helvetia with good rate (in 2017)


 


Kevin Rossier



Hypo Advisors SA
rue Joseph-Pasquier 19 | 1203 Genève
mobile +41 79 830 85 51
phone +41 22 347 24 24
[email protected]
www.hypo-advisors.ch


 



Akbar B, Dec 6, 2019 @ 22:24
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Re: swiss mortgages
Post 7

Thanks very much, i already have met him a few times, his office has moved...:-)

The text you are quoting:

Thanks very much, i already have met him a few times, his office has moved...:-)


Jessica G, Dec 6, 2019 @ 22:41
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Re: swiss mortgages
Post 8

An additional question perhaps I was not clear, i would like to know the differences of getting mortgage between insurance company and the banks.


why banks have business while offering higher interest rate than the insurance company?


what is the risks or disadvantages to have mortgage from the insurance company?


appreciate your comments or advice. thank you 

The text you are quoting:

An additional question perhaps I was not clear, i would like to know the differences of getting mortgage between insurance company and the banks.


why banks have business while offering higher interest rate than the insurance company?


what is the risks or disadvantages to have mortgage from the insurance company?


appreciate your comments or advice. thank you 


Jessica G, Dec 6, 2019 @ 22:44
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Re: swiss mortgages
Post 9

i don't think Swiss bank financing properties abroad. You have to contact a French bank. What concerns acquiring a Swiss property and your last question I highly recommend https://www.d-l.ch/fr  they are very professional and work with insurance companies and banks.


the first meeting is free. 

The text you are quoting:

i don't think Swiss bank financing properties abroad. You have to contact a French bank. What concerns acquiring a Swiss property and your last question I highly recommend https://www.d-l.ch/fr  they are very professional and work with insurance companies and banks.


the first meeting is free. 


Nat S, Dec 8, 2019 @ 22:33
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Re: swiss mortgages
Post 10

I know that the Banque Cantonale de Genève offers mortages for French property.


I believe that the Geneva branches of some French banks (e.g. Crédit Agricole) can also offer mortages for French property.

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I know that the Banque Cantonale de Genève offers mortages for French property.


I believe that the Geneva branches of some French banks (e.g. Crédit Agricole) can also offer mortages for French property.


nmcp, Dec 9, 2019 @ 12:27
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Re: swiss mortgages
Post 11

If you are going to buy property in France but you're income is in francs, get a mortagage from a Swiss or a French bank ... but get a mortgage in francs: at least you reduce the currency exchange risk.You never know what can happen. In 10 years, between 2008 and 2018, the EUR/CHF exchnage rate has fluctuated from ~1.65 to ~1.10 ... that could have a huge impact in your capacity to pay back your mortgage!

The text you are quoting:

If you are going to buy property in France but you're income is in francs, get a mortagage from a Swiss or a French bank ... but get a mortgage in francs: at least you reduce the currency exchange risk.You never know what can happen. In 10 years, between 2008 and 2018, the EUR/CHF exchnage rate has fluctuated from ~1.65 to ~1.10 ... that could have a huge impact in your capacity to pay back your mortgage!


ajimenezp, Dec 9, 2019 @ 20:04
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