I don’t understand,
Mustn’t D+P be =20% of the total value?
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That’s the good point. I did my math and lucky I am in the stage comfortable to take this risk. (PS: My bankable assets are higer than 300k and bank just wanted to see atleast 300k). Hence in my case, instead of getting a higer value house it made sense to buy this out and max out on the mortgage.
And as @logitacher said, banks have provision to defy conventional rules under various cases. It is indeed hard to get unconventional deals in Switzerland - it needs lots of time and negotiation.
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That’s totally right. It does not follow the conventional rules.
Just to be clear, I had 20% in cash + 3a at the time I entered the bank (I also had a couple of counter offers as well). Hence after my initial screening approvals, we started negotiating the terms and landed here.
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Apparantly yes. After verification of bankable assets they said they can just ignore affordability calculation and go LTV (Loan-to-value ratio) as high as 95% but the 10% pillar 3a needs to be in their bank.
I think the reasoning might be that if I default on the payments they can go to bankruptcy court and recover it - but it is my own guess.
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Based on an article of the Poor Swiss, the DP can be only 10% if you pledge retirement assets.
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I think you have some skills in this area, might be a business/consulting opportunty for you 
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Sounds correct (if your “DP” = downpayment)
In my (D+P) post above
D = Downpayment
P = Pledge
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I still dont get it how such a deal is possible (congrats anway 
) Would you mind to give us a bit more background on your situation and your approach?
- Total assets +/- 300k, right? You said “prove that there are at least 300k –> is reality around 300k or like 300 Mio?
- Household income 130-140k p.a.?
- Did you buy ar a discounted price or was it +/- the by the bank evaluated price?
- How was your strategy in open driving the negotiation in this direction ?I understand you knew you would get a mortgage since you met basic requirements. And also you had other options on your table. But then when sitting with the UBS consultant, you just said “btw, I come with you only if you reduce my downpayment to 5%?” Did you also try this with other lenders and what did they say?
Would love to hear more.
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I’ve worked with one bank that also had a 300k bank asset pledge policy to forego affordability requirements however they required the amount to be blocked on their books. Surprised UBS implements something that loose because they have no assurance you won’t spend that money 
.
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Did you go with VIAC? How was it?
I remember on launch, their rates were quite good, but they don’t seem that competitive any more e.g. 1.5% for 5 year and 1.83% for 10 year.
Hi, I explained the options I had available one or two posts below 
. I went with my pension fund. However, I need to pledge my VIAC pillar 3a.
I looked into VIAC but the product offered wasn’t advantageous for my situation.
Sorry if there was any confusion .
Never heard of a bank accepting external 3A for pledging like VIAC or Finpension.
But apparently it’s common for mortgage from pension fund?
Well, how else do you imagine an indirect amortization with a pension fund?
Some pension providers also have 3a (for instance axa).
Wow, congratulations! We bought a small apartment for rental this year, also financed with UBS Key4 (SARON + 1.13%). We would like to fix the rate for 10 years, but the current fixed rate is around 1.55%. How did you manage to get such an attractive interest rate?
Thanks a lot.
For SARON rate I had to negotiate hard, I had couple of counter offers the one especially from Swissquote that offered a SARON margin of 0.55%. I was constantly forcing them to match this offer and 0.7% was the best rate I could close and I still could not convince them to pledge my VIAC 3a directly. However, they offered other perks (lower down payments, forgo of affordability requirements, etc..) that made the offer extremely attractive.
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0.55% Saron margin in today’s market is a really really good deal.
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Are any banks still offering 0.55%?
Swissquote used to advertise this but after checking the lowest they now offer is 0.62 with a 5 year commitment. I personally have 0.5 which was renewed last month at the same rate but I have good connections within my bank having worked as a consultant in their credit IT for some years.
Just as a matter of comparison a bank employee typically gets 0.2 / 0.25% margin on a saron. 0.5 ish is still achievable in my opinion but you need good connections or bring solid arguments in the negotiation.
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As I got few requests to connect with my RM directly in UBS, I spoke to my RM today and he said he would be happy to assist genuine home buyers looking for the mortgage. DM me if you need the reference of my RM.
PS: If you close the deal with UBS we both will receive 250 CHF worth of Key Club points
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