I am looking around for 10 Year fixed mortgage rates for a property. It seems there is a significant rates offered by Insurance companies like Zurich, Axa, Swisslife etc (0.77 - .85 %) vs. the banks like UBS, CS, Raiffeisen etc. (1.2 % 1.4%). Why would there be such a difference in the rates?
Given the significant cost savings over 10 years, is it recommended to go with the lowest cost provider in this case insurance companies?
There are often hidden things in the mortgage contract. For example they can always cancel the contract and set up a new one with higher interest rate if they want. Most insurances won’t over anything for renovations, so just suitable for plain buying. So if you compare the offerings, look at the details.
Btw, just take the insurance offer to the bank and ask: I really want to do it with you, but what can you offer me?
Thank you for the quick feedback, I was sure there was some hidden catches with the offer from insurance. In our case one of the the pillar 3A is with swiss life (BVG mix 45 fund) and hence they offered a lower rate. Clearly banks are better considering the long term impacts.
Blockquote Btw, just take the insurance offer to the bank and ask: I really want to do it with you, but what can you offer me? It’s possible to get 10 years 0.75% with UBS.
We are in the process of negotiating with the banks and trying them to match insurance rates. Is the UBS 10 year offer of .75% only available for employees? So far the lowest I have offered is 1% with Raiffeisen.
They ALL want to give you the mortgage. 0.75% is better than nothing. The rates are -0.75% anyway. Just take your time and negotiate. My (big bank) client advisor called me several times in a 3 month timespan before he eventally went down to the level I wanted and expected to get.
I can confirm that Migros Bank offer better conditions than competing banks.
In addition if you are willing to give more equity, the offer could be nearly at the same level as insurances.
3a is always deductible, wheter it is an insurance or not. Are you talking about 3b, because yes, Geneva is one of the few cantons that allows 3b deductions ?
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