Whatâs also a fun way to find out mortgage pricing is via underlying mortgage-backed securities
Interesting article how banks have increased their mortgage margins lately: Haus kaufen: Banken machen Hypozinsen teurer als nötig | Tages-Anzeiger
I feel credit suisse was a good and large competitor for UBS and now itâs gone. It would impact Swiss residents specially for mortgages
True that. Plus the fact that UBS aims to reduce its mortgages. Therefore they accept that some potential or former customers who are comparing rates are running away.
Iâve seen it at one of my client, they increased their margin by 0.1% on saron and 10 year maturities since a few months.
UBS expects one more cut by the SNB to 1% but nothing more while the market priced in 2 further cuts. Letâs see who is right ^^. UBS market view is available here Wann senkt die SNB die Zinsen? | UBS Globale Themen
I hope to see reference rate change as well. It would help us to get rent reduction.
For now it seems itâs stable at 1.75 %
But if mortgage rate would go down, at some point it should reduce the Reference rates too.
anybody can share recent rates received from the market?
also what is your view on the rates development in the next 6-9 months? I am evaluating the option of switching to fixed mortgage now, will it makes more sense to wait at the moment for sep/dec SNB meetings?
This week :
- 1.41 % on a 10 year fix is an excellent application; 1.6% for an average application.
- Saron 0.5% margin is for an excellent application; 0.7% margin for an average application.
Margins have increased because some financing institutions have reduced their appetite to close mortgages, however if you negotiate and your application is a no brainer youâll get similar pricing as last year.
Did you negotiate the interest and then got the 0.55% benefit applied or is this just with the benefit without negotiation?
I work in finance and these are internal employee-only rates, no negotiation possible (and not needed, as there is barely a margin to speak of). They apply as long as Iâm employed by my firm. If the employment ends, a malus of +0.55% is added on top of the above numbers for the remaining duration for any fix term mortgages.
Indeed, the 0.55% preferential rate is applied in addition to the standard rate, but my understanding was that one could negotiate the interest rate as if they were a regular customer, and then benefit from the additional 0.55%. Only in that scenario would it truly represent a 0.55% advantage.
The bank still profits by using the deposited funds for lending purposes, such as issuing loans. However, if an employee leaves the company after a year, they might have been able to secure a more competitive interest rate with another bank had they initially negotiated as a non-employee.
Whatâs the typical amout of mortgage you make to get a low 0,55% Margin? Is it with a 3 or 5 three year contract?
Seems hard to get these days!
I donât think we are on the same page. The normal customer rate that my employer offers is not very attractive usually, and can only be negotiated if you hold some serious assets (we are talking HNWI and above). Therefore the preferential employee rate is as good as it getâs. Iâm not working at UBS, if you are thinking that.
Alright. I asked because i know that at my place some friend of mine negotiated the price down. For example from 1.7% to 1.5%. Now iâm starting at that bank and was curious if i can get the 0.5% discount (they have this offer) on a negotiated interest. So that would mean i would get 1% and if i leave 1.5%, instead of 1.2% interest by applying 0.5% on the current rate. So when i leave my company, i would have a less attractive rate than my friend who negotiated it initially.
not sure if it was already mentioned but I think in any case it is worth repeating, what makes the application excellent?
would be interesting for me as well - I noticed that if you need construction financing (in my case a renovation) the rates seem to be higher, or not all lenders are interested, even if you bring >33% hard cash. Iâm sure thereâs some other factors?
Itâs rather straightforward:
- your affordability ratio is below 33 %
- you have wealth on the side
- you have savings habit
- you have long history with the bank and no incident
The less risk the better. Each bank will implement its own pricing policy but those criteria are always important. Of course if you know the relationship manager or the branch manager well they have some flexibility to override pricing rulesâŠ