FI with mortgage? Conditions for bank lending for clients without salary

Real Estate
21

Usually only if you are able to withdraw them short/midterm.

22

Which should always be the case when one lives abroad, right?

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23

It’s collateral for the bank, you can still manage yourself. Also: it depends to whom you talk - a lot! Find a banker of trust who can help you navigate inside the banks, this is more important once your wealth is growing and your needs are adapting (e.g. financing, mortgages not related to salary, and more, e.g. business solutions).

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24

Easier said than done. All bank employees that I’ve met so far were clueless clerks; except one, who rapidly rose through the ranks and into other jobs.

Do you have ideas on how to find somebody capable?

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25

Nowadays you have to do everything by your own - or you will get ripped.

FI and mortgages is possible but there is no general answer. As other wrote: it really depends on the internal regulation of various banks. Some are calculating with x% „Verrentung“ of your free assets (some banks even include the bound capital in your house/aparment) before and y% „Verrentung“ of your free assets after getting retired.

With valid arguments in regard to the bank‘s policy it is even possible to have an affordability ratio of >200% - with normal interest rates and no added amortization.

Therefore, no worries there will be a solition once you hit FI :slight_smile:

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26

Same experience here, actually.

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27

Many members of this forum probably know more than some professional financial advisors working in banks. For example I talked to one who didn’t know what ETFs were, only the bank’s own products.

So I agree it is necessary to do the legwork and find the right contacts and information for yourself. If everyone knew the answers they would follow the same path themselves


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28

Find out what they need/ how you can help them, give them what helps them and get what helps you.

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29

Sounds like the recipe to become President of the United States. :smiley:

Jokes aside, it’s somewhat comfortable to see that the others here have had similar experiences.

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32

Could you give more info ?
What was use by UBS as revenue to give you a mortgage ? what was the amount of the mortgage and of your FIRE revenue?

35

So, if I have no income, but 1M wealth (including RE equity, 2nd pillar, any mortgages subtracted), the bank would consider my situation as the one of someone with a salary of 80k/year, right?

36

That would surprise me. How could illiquid assets like RE help you in paying the ongoing mortage interest? Different story for cash & stocks; there I see less of an issue.

37

More like a wishful thinking, indeed.