I would go 100% SARON or 100% fixed, I see no benefit in splitting the 680k chunk just for a bit of risk flattening.
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Agree. 100% either fixed or SARON. Looking at the rates, theres not much difference.
One point to consider is what is the fee to convert SARON to Fixed, if the rates start to increase?
How did you decide which banks to ask? If we manage to close the deal, I would have to do the same soon…
I was also thinking to ask 3 different banks, 1 cantonal where I already have an account, UBS (as I have already been in contact with them for other project) and some third one, not decided yet which one. I was also thinking to add MoneyPark to the equation, to get more complete picture.
What do you think about this approach? Can you recommend any banks I should ask, knowing that they are currently (or recently) open to be competitive in this area?
Check out BKB / BLKB, especially BKB is very motivated right now to get business.
Migros Bank is always the best bet to get rock bottom rates and then use them to negotiate with other banks.
I would recommend Hypoplus (mortgage arm of Comparis) instead of Moneypark. They were quite helpful during our mortgage process and even got an offer from a Kantonal Bank for 0.55% for 5 years (we would have had to bring 21% cash to the table)
If you need a specific contact at Hypoplus, I am happy to recommend. PM me for more details.
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I asked:
- My current bank ZugerKB
- BCGE because we have special conditions from my employer with them
- LUKB because a friend works there who also managed to push interest rates down when I originally got the mortgage
From what I can tell LUKB seems to be most attractive for now, obviously I don’t know if they would give the same condition to other clients but stuff like not mandating the salary account to be with them and no cost for creation/extension of the mortgage sound very convincing.
I used Hypoplus when I bought the apartment initially but they claimed that all 35 banks/institutes they reached out to were not interested because I had some smaller private debt in my 2015 tax report. Only Raiffeisen and ZugerKB were willing to make an actual offer back then.
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SARON is typically calculated in arrears vs LIBOR that was fixed at the beginning of the period. This means that you will not really know your interest payment until the time payment is due. In any case I guess not a big thing due to the relatively low volatility of rates but if important to someone apparently some banks are willing to commit in advance for a slightly higher rate.
On another note is anybody aware of the offer from GLKB? If i understand correctly it seems that you can avoid breakage costs in case you sell the house (!). Published rates appear to be higher from the ones discussed here (dont know if these are negotiable) however one may want to consider to get this flexibility which could potentially save you huge amounts if you lock for 10 years and then decide to sell the house (I think most banks will ask you to pay your rate minus the reference rate which since it is negative will actually be added to the total!)…
I have not used them (and actually didnt even know this bank) but here is the link in case someone reads it differently than I do
https://hypomat.glkb.ch/online-hypothek/hypothek-aktuelle-zinsen?1
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