# Mortgage from Swiss Insurance companies vs Banks
**URL:** https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925
**Category:** Real Estate
**Created:** [May 28, 2020, 4:50am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925 "2020-05-28T04:50:52Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@element532](https://forum.mustachianpost.com/u/element532)
#### Post date: [May 28, 2020, 4:50am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/1 "2020-05-28T04:50:52Z")
Hi Mustachians,
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?
Check the comparison between rates here: [https://www.top-bank.ch/en/compare/mortgage-loans](https://www.top-bank.ch/en/compare/mortgage-loans)
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### Author:  [@glina](https://forum.mustachianpost.com/u/glina)
#### Post date: [May 28, 2020, 7:04am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/2 "2020-05-28T07:04:04Z")
There are several tricks insurance companies/salesemen use:
- mortgage split in two, one as advertised for the first 65% percent of property value, second much more expensive for the remaining part
- they will force you to take 3a for amortization part (read around how insurance 3a is a money trap)
- they will ask you to move your insurances (household, car, life) with them
In the long run, you lose
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### Author:  [@Cortana](https://forum.mustachianpost.com/u/Cortana)
#### Post date: [May 28, 2020, 7:08am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/3 "2020-05-28T07:08:01Z")
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?
It’s possible to get 10 years 0.75% with UBS.
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### Author:  [@element532](https://forum.mustachianpost.com/u/element532)
#### Post date: [May 28, 2020, 7:17am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/4 "2020-05-28T07:17:19Z")
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.
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### Author:  [@element532](https://forum.mustachianpost.com/u/element532)
#### Post date: [May 28, 2020, 7:19am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/5 "2020-05-28T07:19:37Z")
> 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.
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### Author:  [@glina](https://forum.mustachianpost.com/u/glina)
#### Post date: [May 28, 2020, 7:22am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/6 "2020-05-28T07:22:14Z")
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.
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### Author:  [@Cortana](https://forum.mustachianpost.com/u/Cortana)
#### Post date: [May 28, 2020, 7:24am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/7 "2020-05-28T07:24:07Z")
You could also go to MoneyPark.
You can get better offers than their employees would get.
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### Author:  [@baldur](https://forum.mustachianpost.com/u/baldur)
#### Post date: [May 28, 2020, 9:17am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/8 "2020-05-28T09:17:11Z")
Do you speak about 0.45% fixed for 10 years or variable rate one?
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### Author:  [@Cortana](https://forum.mustachianpost.com/u/Cortana)
#### Post date: [May 28, 2020, 9:22am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/9 "2020-05-28T09:22:04Z")
Internal refinance rate + margin = your interest rate.
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### Author:  [@baldur](https://forum.mustachianpost.com/u/baldur)
#### Post date: [May 28, 2020, 9:35am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/10 "2020-05-28T09:35:51Z")
Is it possible to check daily refinancing rate from the investment bank of UBS or it is internal information?
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### Author:  [@Cortana](https://forum.mustachianpost.com/u/Cortana)
#### Post date: [May 28, 2020, 9:49am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/11 "2020-05-28T09:49:34Z")
It’s internal information, so no chance knowing it.
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### Author:  [@glina](https://forum.mustachianpost.com/u/glina)
#### Post date: [May 28, 2020, 10:23am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/12 "2020-05-28T10:23:02Z")
Hope you don’t get in trouble for posting this stuff!
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### Author:  [@Cortana](https://forum.mustachianpost.com/u/Cortana)
#### Post date: [May 28, 2020, 10:54am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/13 "2020-05-28T10:54:57Z")
No harm done 😛
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### Author:  [@anon95353169](https://forum.mustachianpost.com/u/anon95353169)
#### Post date: [May 28, 2020, 8:20pm UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/14 "2020-05-28T20:20:04Z")
Another difference is that several (most?) insurances will not let you use your pension money in the 20% downpayment, so you need 20% in cash.
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### Author:  [@mbaluda](https://forum.mustachianpost.com/u/mbaluda)
#### Post date: [May 29, 2020, 3:57pm UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/15 "2020-05-29T15:57:12Z")
I had a positive experience with Migrosbank, the only bank that could finance also renovation costs at 80%
I do not think insurance can do that
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### Author:  [@preparations](https://forum.mustachianpost.com/u/preparations)
#### Post date: [May 29, 2020, 7:03pm UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/16 "2020-05-29T19:03:42Z")
Try at your local Kantonalbank aswell.
I’ve recently taken a 10y mortgage at 0.95%.
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### Author:  [@jcd](https://forum.mustachianpost.com/u/jcd)
#### Post date: [May 30, 2020, 6:02pm UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/17 "2020-05-30T18:02:32Z")
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.
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### Author:  [@REandSTOCK](https://forum.mustachianpost.com/u/REandSTOCK)
#### Post date: [May 31, 2020, 9:07pm UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/19 "2020-05-31T21:07:06Z")
> [@Swissbliss](#):
>
> our Swiss Life sales rep told us they ask for around 33% for the past couple of years
> [@Swissbliss](#):
>
> With Swiss Life, the whole mortgage is 1er rang.
Isn’t that the same thing ?
> [@Swissbliss](#):
>
> Swiss Life proposes to subscribe to a 3a insurance contract in return for a discount on the rate they give you (in our case 0.10% off on the first tranche of 500k of the mortgage). You don’t have to, but you miss out on the discount - and in some places like Geneva the 3a insurance is tax-deductible.
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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### Author:  [@SwissTony](https://forum.mustachianpost.com/u/SwissTony)
#### Post date: [June 2, 2020, 12:50pm UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/21 "2020-06-02T12:50:42Z")
I switched mortgages 2 months ago and used a broker for the first time. I spoke with Olivier Droz at MoneyPark.
He was very helpful and found me a great deal with SwissCanto.
This is not an advert 🙂 my genuine response. The guy worked very well and I always feel like giving good feedback when it deserves it.
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### Author:  [@Broth](https://forum.mustachianpost.com/u/Broth)
#### Post date: [June 8, 2020, 11:04am UTC](https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925/22 "2020-06-08T11:04:30Z")
> [@glina](#):
>
> they will force you to take 3a for amortization part (read around how insurance 3a is a money trap)
Why is the amortization in the 3a a money trap?
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