The bank is proposing that, and we have been already vetted and found worthy of lifelong debt 
Is it specified in the contract whether and when the bank is authorized to check your creditworthiness (e.g., a check every 5 years, at the bankās discretion, etc.)? I imagine that an indefinite-term Saron doesnāt mean the bank will never perform a creditworthiness check ?
In the contract thereās a line saying that any changes in your circumstances or market conditions may require you to bring more collateral. Banks typically do yearly checks, if you always pay on time though they wonāt ask for your salary certificate. To avoid any such checks though and If you can, do not put your salary at the bank where you take the mortgage because they will detect when you stop receiving your salary or if you are suddenly registered to the RAV.
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Same what @HoiZame mentioned: In the contract thereās a line saying that any changes in your circumstances or market conditions may require you to bring more collateral.
UBS aka global bank did not check for the last duration (5Y) once the initial approval was done. The next check was done this year in Mar at the time of mortgage renewal.
Key point is that they were the only institution who did not raise an eyebrow or request additional asset documentation on learning that my wife was going to be unemployed as of Apr.
All other institutions that we approached asked for additional documentation and some outright rejected us.
SNB will enter negative territory again this year, Iām convinced. The CHF is getting too strong and inflation is down to 0.3% with a risk of getting to deflationary levels. They might go to -0.25% in June already.
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Cortana the oracle of SNB policy has spokenš
100% agree with you. They must send a strong signal to the market
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If it happens, will it affect long term mortgages (7-10y)?
Hard to tell as the long-term mortgages are more influenced by expectations of future inflation rates. But I can imagine seeing 10Y 1.00-1.10% in the next 3-9 months.
There would be no effect unless the move from SNB is unexpected
Mortgage market is working with expectations priced in. Whatever they are. are known to everyone
Mortgage market is working with expectations priced in. Whatever they are. are known to everyone
That simplifies things a bit too much. Markets are indeed pricing in expectations, but that process still depends on the assumed probability. In many cases the realization of an expected event (i.e. its probability becoming 100%) could still affect the pricing action.
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Right. But right now we are only talking about expectations and not reality. Once reality happens then new price will reflect but then its too late to do anything about it.
There is no visibility about inflation for the next years, a premium rate will persist on longer swap rate.
SNB rate could be at -0,25% and 10y confederation yield at 0,5% for Instance. In this case you canāt hope to have 10y fixed mortgage under 1% like it was the case Ć few years ago.
I expect the return to historical normality : risk premium for Saron Mortgage.
Hello everyone,
I hope you are doing well.
I just purchased 2 investment properties in Ticino. I did the all process with Raiffeisen because it was the same bank financing the whole building operation. (I signed a right of purchase 8 months ago and now they are finally ready).
This is what the bank offered me and suggested me:
Using the "Table of interest" , from 6 to 10 years you can take off 0.20 points.
While with SARON mortgage margin 0.95% + SARON rate (0.17%).
From my point of view and given the current situation I would go to a SARON rate where you pay 1.12% momentarily."
I personally always wanted a fixed rate to have more piece of mind, but after Cortanaās message iām thinking about doing SARON and then swapping for FIXED as soon as they lower it.
With the current offer I received, how aggressive I can try to negotiate? You think I could put down fixed interests on 6 year to 1.25% instead of their 1.45% offer? And what about the SARON, how aggressive can I be to lower the 1.12% they are offering?
I would really appreciate some opinions, this is my first mortgage and Iām still unexperienced.
These rates arenāt that good. 5 years should be at around 1.0-1.1% right now assuming a fair margin. The refinancing rate for 5 years is very close to todays Saron base rate.
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Yes, after reading the previous messages I was very mad. 
May I should add a couple of info more:
-Total cost was CHF 480ā000 (2 Studios at 220k+ 1 parking at 40k)
-Down Payment 25%, therefore loan will be CHF 360ā000
I wonder how aggressive I can go in saying āoh, your rates are very badā. Maybe the fact that itās a small loan itās affecting the rates.
Itās a factor for sure. But maybe try something in the order of:
Thanks for the offer, also for the Saron margin of 0.95%. After some research and comparing I noticed that the refinancing/swap rate for a 5 year mortgage is very close to the Saron base rate. Could you adjust the fixed rate offering that it aligns closer to the Saron margin? I think keeping the margin at 0.95% and entering a long-term contract would be fair for both sides.
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Infinitely appreciate the inputs, Iām gonna keep researching and come up with the best strategy for me. Will keep you all updated on how things goes.
Very excited for this operation, with the loan I will end up paying all things considered around 12k yearly but expecting 36k from rent (18k each). Hopefully will get some good cash flow to keep reinvesting 
Their 5 year offer is about the same as the 10 year offer here: Bei der BVK profitieren Sie von attraktiven Hypothekenzinsen zu Top-Konditionen.
Maybe you can use it to help negotiate down?
ick.. bad rates. shop around
Donāt expect too much:
- We are talking about Ticino (ofc, it depends on the location), but there is not much competition and not that many banks from other location will go below a certain margin for this region;
- Lower mortgage.
I would probably choose a short-/mid-term mortgage and then check in couple of years with other banks.