Best Mortgage provider for variable Income person

Hello everyone,

I am trying to find the Best Mortgage lender for my situation:

As a sales person big part of my year Income comes from my sales commissions and quater bonus. To be more precise my fixed based salary is 90k a year when realisticaly I make about 150-160k of taxeble Income. A lot of banks calculate only small portion of these variable Income and I arrive to about 115k Gross annual Income in their calculations.

I have had a Phone conversarion with a person from Money Park claiming he have partners that would take in to account 80 % or even 100 % of my bonus, I just have to apply as a client of MP (:smirk::smirk: yeah sure… I am a sales person my self)

Can it be True? Are there some lenders who are known to be more willing to work with variable Income clients?

Any reasonable bank would take your base salary and at least 80% of the average of your bonus from your last 3-4 years.

Which banks did you contact so far?

So Far I got budget forecast from UBS and Migros Bank. Both were more on the conservative side =(

We had also talked to MoneyPark. It was OK, but we’d have had to provide a lot more documentation. We also contacted some providers like 2nd pillars and various banks. They were slow to respond to us, I think that going through a real life broker will definitely get you more offers.

In the end we went with my wife’s bank where she had been a customer for years.
They gave us a pretty good deal, after putting on some pressure :wink:

Basically, your choices are:
Either you go with MoneyPark or some other broker (e-hypo, valuu, some others), they may or may not negotiate you a better deal. Just know that if they procure you offers and you don’t go with them, they may bill you. MoneyPark surely does.
IMO, they have an edge when it comes to special conditions, like being able to cancel the mortgage prematurely for free.

Or you do the shopping around yourself. Then you don’t pay MoneyPark, but you spend your own time.

Pick your poison.

Either way, be completely prepared with all assets for all parties (spouses, partners) involved. Make a nice PDF or ZIP folder with all recent bank and broker statements and documents, sorted by category:

  • 2nd pillar (including if you can pledge it as a security)
  • 3rd pillar (all accounts)
  • private savings (bank statements for cash, broker statements for all stocks and funds you own)
  • voluntary life insurance policies, disability insurance policies
  • other assets like property abroad
  • recent Extract from the debt enforcement register (Betreibungsregisterauszug)

The more prepared you are, the better a deal you will get.

2 Likes

Oh that is a Good summery, thank you!

How long does the one have from the moment of offer acceptance until you have to get accepted by the mortgage?

And returning to the initial question: Do you have any specific bank/insurance names to Recommend to contact first?

Kind of difficult. Depends on the contract you have with the seller or their broker. I suppose you have a month or so to procure financing. If you fail, you have to pay a penalty.

You need to secure an object before actually applying for a mortgage. But you need to know the offer to know how much you can afford. It’s a bit of a chicken and egg problem.

I don’t know any names now. Maybe someone who has bought recently may want to chime in.
If you are tough enough and have your documentation ready - see my previous post - you can get good rates almost anywhere.

Some general suggestions:

  • In my experience, your house bank is a good first stop, if you have one. They know your financial history. They might also be willing to do deals such as “if you transfer your ETFs to us, we will use them as collateral“.
  • Look for ads offering cheap rates and knock on the door there. Visit lots of websites.
  • The bigger banks like UBS, CS, Migros and bigger cantonal or regional banks should in theory have more leeway with rates.
  • I’ve heard 2nd pillar foundations and insurance companies are cheaper. They might be less flexible though. Start by contacting your own and your spouse’s second pillar.
  • I am not sure contacting more than 3-4 providers is useful. It takes a lot of time to talk to them all.
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