would need to check, but I’m fairly certain that I could switch, yes. Not sure if that’s the move tough, that would only make sense if the swaps would further drop.
I’m currently leaning towards a 5Y fix, high likelihood I would only pay minimal penalty and locking in a pretty low rate.
I don’t want you to change your mind just based on my personal opinion. But keep in mind (especially after the last couple of days), that the SNB can still go well below current rates. I think it’s absolutely not off the cards for us to see 0.00-0.50% next year, probably even 0.75% in December this year.
The market is already pricing 0.75 with today’s decline. If the Fed starts cutting like this guy suggests : Wharton's Jeremy Siegel says Fed needs to make an emergency rate cut we could actually see 0 pretty soon…
NB: CHF / EUR at 0.93 the SNB will have to act rather soon.
Where/How do you see what the market is pricing in? The 0.75?
What’s 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 it’s 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.
I’ve 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. Let’s 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 it’s 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 :
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 you’ll 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 I’m 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.
What’s 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 don’t 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 get’s. I’m not working at UBS, if you are thinking that.
