Hypothek VIAC or other for renovation costs

Real Estate
1

Dear all,

We’ve just made an offer for a little Chalet and normally it should be accepted :crossed_fingers: :crossed_fingers:

It’s been 18 months we are looking the market and it’s the best and cheapest we find… Our first critera were sun exposition and calmness! Then they are almost only big chalet and we are only two and rather frugalist/minimalists :wink:

Of course there is some renovation work to do soon but we are fine about it and it is already lilveable
So I am already looking for some financing options and I ask for your opinions and feedbacks about VIAC or others banks.

Chalet Cost: 385’000 CHF
I would like to finance it at 100% and some renovation work if possible!

Our ressources:

Her - Independant - 80k a year
2nd pillar libre passage by VIAC 10k
3rd Pillar by VIAC 100 35k

Me - Employee - 87k a year
2nd pillar from firm -45k
3rd pillar by Finpension 100 - 21k

I don’t talk about cash or others as we’ll have more than enough :wink:

VIAC is ok to finance 10% for renovation work so let’s say;

Hypothek: 423’500 CHF

10% 2nd pillar pledging
Her 10’000 CHF
Me 33’500 CHF
10% 3rd pillar pledging
Her 33’500 CHF
Me 10’000 CHF

We still have 11k + 1.5k of 3rd pillar. As we are fullly invested I guess it would be fair to pledge the whole so the bank have a fair security matress in case of turmoil

An other thing I found on the WIR Bank formular that we can indicate another provider for 3rd pillar than VIAC. But Maybe it’s a bit crazy trying with Finpension, I guess it should be much miore straight foward if I do transfer to VIAC right now?

For the 15% “second rang” we would pledge our future 3rd pillar contributions.
We’ll do a 100% SARON with a 0.65% margin to finance 110% of the house
The only cash we will spend will be the 13’500 CHF notary fees and future renovation work above 38’500 CHF. Is it too good to be true or I miss something?

Could we find another good offer with banks or it’s a no brainer?
Like 10% second pillar pledging + bigger renovation amount like 100k and SARON + 0.5%?
Any bank will accept to pledge VIAC/Finpension or will they only sell their overcharged stuff?

I’ve just runned the UBS simulation tool they value the house between 400 and 596k so I guess it should be ok for banks to finance us!!

Thanks for your attention, any opinon welcome!

1 Like
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We bought an old chalet. I know if is not the subject of your question but here some things to watch out for:

  • Replace roof (we knew this was needed and it was discounted from price). 50k minimum after counting interior and electrics etc.
  • Capricorn des Bois - that munch the wood, iirc we paid 5-10k for a treatment with 10 year guarantee
  • Do you own the water line to your house, and the drain, or the commune? We had to pay 20-30k over the years to fix leaks, put in conformity etc. Luckily we were able to get some from insurance, others could not
  • Electrical control - when was the last certificate? We had to pay 5-10k to be in conformity
  • Insulation - none existed between the outer walls or roof
  • Bolier and whether tanks for heating oil conform with regulations (now being enforced more strictly)

I don’t meant to put you off, just to make sure you go into it with your eyes open. If I was doing it again I would try to find someone to help me inspect it before buying. Also get good insurance that covers things like breakages in water pipes outside the house

4 Likes
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Thanks for yours advice. We are aware about these points.

The roof is still ok but we’ll put better isolation and maybe solar panels. We know we’ll have some big fees to renovate we are ok with that.

Boiler is almost brand new. I’ll ask for the water pipes and look closely about insurances.

In fact I was unable to visit the house that’s my GF and a 2 friends who visited it but we already made an offer.

I will visit myself this afternoon and do further checking.

4

Is this for a holiday home or primary residence?

Asking because to me Chalet usually refers to holiday home but I thought you were only able to use 2nd pillar (pledging or withdrawal) for primary residence.

5

Primary residence. Already live at 500m of the house so we know we are going.

Anyway we are second on the list… hopefully the others won’t get bank permission. We should be fixed tokay nornally! Anyway I’ll keep my appointment by the banks on tomorrow’s so I’ll keep you posted about conditions we can get nowadays

3 Likes
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So finally we didn’t have the house… That wasn’t the right one for us!

Anyway I’ve made a few calls and appointments with banks here are the results:

CA Next Bank 0.6% + SARON
Pledging with their partner lberty with custody fees of 1% + 0.25% TER for index fund 95% invested
No renovation cost financing without proper estimate
10% 2nd pillar pledging must be amortized after 15 years (???!)

Migros Bank 0.8% + SARON
Pledging with 85% invested Mi-Fond @1.07% TER!
But ok to finance +20% for renovation without big problems if I come with bills afterwards (including just material if I work by myself)
Also promess of really short delays like 3 days after all ther files are ready to make their decision and get the money to the notary.
My current banks with low fees and which didn’t gamble with money on international markets I guess…
They don’t go visit the house to expert it.
They also promess a better E-Banking for very soon and admit the current one is not optimal

UBS 0.8% + SARON (with some margin to negociate depending the products we open…
Pledging with their 3A at 90% of the value with 0.5% custody fees +0.25% TER Vitainvest 100
If I understood correctly we can even pledge a regular trading account with ETF @ 0.35%Custody fees (SIX Exchange)
They ask 5% of the value of the house with cash but after the 15% they can make your kind of Lombard Loan with your hypothek rate. So if you need 150’000 CHF your trading account must always stay above 250’000 CHF for not getting margin called.
That options seem interesting for some cases or do miss some hidden fees?
Otherwise they will always come at your house to inspect it after valuation (here in VS)

Seems that VIAC/Wir is a no brainer!
With their 0.65% +10% renovation fees without paper work and they full pledging system and 3A @0.42% TER!
I do hesitate to open a case to check their process and if they accept us, the day we’ll really buy something, everything would be ready…