The house is located in about 10 min biking distance from Olten train station. We love Olten because we love public transport, and we can go to Zurich, Bern, Luzern, and Basel in about 30 mins.
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Do you think the bankable assets allows for affordability to increase? I wonder what formula is usedâŠ
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Itâs a philosophy in itself, since banks can enforce such policies quite differently. Technically, most banks have a process whereby the management board can approve any mortgage with any affordability or LTV ratio.
If you have a high income, have purchased real estate at a significantly reduced price, or have substantial assets, it is likely that you will not have to meet public mortgage criteria.
How can you tell if you meet any of the three criteria above? Ask the lenders and they will tell you. There is no magic formula, but talking to as many lenders as possible is key. If they all deny your application or offer you unfavourable mortgages, you will realise that at least one variable is working against you.
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Yes. Iâve tried to get a mortgage twice in Switzerland.
First time, the bank ultimately refused and in subtle diplomatic terms it became clear this was because of prior bad experiences with the promoter selling the new project. I was able to get out of the reservation intact because the promoter had come with an absurd purchase contract. Later, as the project progressed, it became clear in the media what a disaster it was.
Second time, there was no issue from that side and in fact the bank offered to increase the mortgage much higher than we wanted (thus also: low to zero of our own assets). We chose not to do so and rather play it conservative and go in with 30% of our own funds + some additional amoritzation the first years. We just were not comfortable with a very large mortgage and the risk of a market crush wiping out our stock portfolio.
Be careful with maxing yourself out.. do the math in terms of what happens if things go south somehow (interest rate increase, job loss, market crash, etc.)
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Any links?
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Thanks for sharing.
Wow, very impressive! Also the SARON rate is great.
I guess the only small downside is the more expensive 3a, which will cost you a little bit every year. But all in all a super package.
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I donât understand,
Mustnât D+P be =20% of the total value?
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Thatâs 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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Thatâs 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 âDPâ = 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 âprove that there are at least 300k â> 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 âbtw, I come with you only if you reduce my downpayment to 5%?â Did you also try this with other lenders and what did they say?
Would love to hear more.
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Iâve 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 wonât 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 donât 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 wasnât 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 itâs 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).