Proof of own funds for mortgage

Real Estate
1

Hello!

I’m most likely going to be buying (well building in that case) a home soon, and I had some questions regarding the financing part of it.

I’ll probably have to go over the 20% minimum for own funds, and thus sell at least some if not all the stocks I own.
As far as I understand, it’s likely the bank will value the stocks at less than current face value, so should I sell them before seeing the bank, or do I wait until I know exactly how much I need to sell?
Likewise, some of my funds are in EUR, should I convert them to CHF before seeing the banks?

Also, since it will first be a construction loan, are the requirements different from a regular mortgage? Since I’ll be paying rent whilst the construction is ongoing, does it change anything? Like adding my rent to their affordability calculation?

Thanks!

2

I would meet with the/a bank as soon as possible to see how much they’re willing to lend me/how much own funds they would ask. You seem to have some idea about what you are wanting to buy/build so you should be able to assess what is the minimum that you’ll need to do to be satisfied with the place you’ll be living in and how much more you may be willing to put in for various quality of life improvements over that.

The meeting is free of charge and without commitments.

They way I’ve done it: there’s a minimum under which the operation lost attractiveness for me. A loss of value of my stocks below that threshold would have endangered my real estate project and I valued that more than the stocks themselves → sell as many stocks as required to guarantee I can reach my personal minimum, have it available in the currency I expect the loan to be.

“Nice to have” funds, that is, funds that don’t endanger the project itself if they’re lost but that I’d still be willing to use under certain conditions could stay in stocks (and used as collateral depending what the bank offers in terms of loan).

I can’t help with the affordability calculation, that’s a question I’d ask the bank and already shop around a bit (meet with several of them) if I don’t like the answer I get at first.

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