Dear all,
I am considering selling a flat. The mortgage is still going for 7 years. The penalty is high (~70k).
Do you have experience with mortgage transfer upon selling real estate ?
The agency I asked about was very pessimistic. The bank was neutral but not enthusiastic.
Thank you
What’s the interest rate on the mortgage? That will determine how attractive it is. I guess you could also sell it with assumption that the mortgage is taken over or +70k surcharge if not and let the market decide.
You can either sell it at your price, pay the CHF 70k penalty, and allow the buyer to choose their own mortgage, or you can deduct the CHF 70k from your selling price, as long as the seller agrees to take your mortgage.
1.59%
I was thinking along the same lines as you, but to offer a discount if they take over the mortgage.
1.59% is not bad. I just closed one at 1.45% but that was for 9 years.
If your property is in a sought-after area, I think you’ll be OK.
Ok, great, this is reassuring, then I will try to propose a discount on the price if they take over the mortgage.
Thank you for your help
I recommend doing the math carefully, since, for example, I end up paying less at the end of the mortgage by keeping the existing mortgage at 2.29% than doing a new one at 1.6% (the penalty was 125k).
A few years back we bought a house and took over previous owner’s mortgage. He reduced the price by the amount of penalties he would have to pay (31k CHF). The bank was BCV - no issues with that at all (at that time).