Hi there,
I‘d like so start a small survey what bank margin you have in your SARON contracts / what offer you got.
I have currently a offer with 0.5% on my table. Some sites on the internet are advertising 0.45% or 0.42%. Is it realistic to achieve <0.5%?
Regards
If you are below 65% LTV, have a high income and enough free assets (without pension fund) - then yes.
Indeed, that’s what I have been told as well: “If you don’t actually need a mortage, you can get an extremely good deal.”
I got 0.55% with UBS in March
Thanks for your comments so far. Ill talk to some local banks, maybe competition wins and they are willing to beat the current offer
I will start mortgage shopping in the next months and would be interested in knowing whether anyone got SARON offers recently ? VIAC offers 0.65% margin but I think one can find better.
Margins aren‘t as low as they used to be last year. Previously banks earned 0.75% + margin, now only the margin.
So anything below 0.65% is a pretty good offer. I think it‘s highly unlikely to get a real offer with 0.5x% nowadays.
Impressive… I never thought they had so much room for negotiation.
My best finding is 0.59%, avantageservice from the BCGE.
You can see that UBS takes a SARON margin of 0.56% here. Add the current SARON rate of 0.45% and you get 1.01% interest rate.
Of course, when rates where negative, you only paid 0.56% 
If UBS advertises 0.56% on their website, I assume one can get a better deal after some negotiations, no?
Not sure it’s an offer from UBS. AFAIK, Key4 works with many partners, like Valuu. The best offers aren’t necessarily from UBS itself.
The small print is also worth a read
The interest rates shown were determined by key4 on the basis of the following financing parameters: canton: Zurich, loan amount: CHF 500,000, affordability: 24%, loan-to-value ratio: 50%, mortgage payout date: 26.12.2022.
Sounds like you might not get the same conditions if you are an unemployed shop assistant buying an abandoned barn in the Canton of Jura.
That‘s why I was talking about real world offers. 0.56% sounds nice on paper, but who has 24% affordability and 50% LTV?
I don’t think you can negotiate this with UBS. If you managed to do it, please let us know how!
LOL! Of course, it’s their best rate, because what else?! It’s called marketing.
How is affordability computed?
I thought every bank would go down a bit if you did some haggling. That was the case some years ago at least (though I can’t remember if UBS lowered a bit their offer, I was very unimpressed by them because when they met me they had evaluated the office of the real estate agent instead of the house I was buying).
Look, I just kindly pointed out that your previous assumption :
was not necessarily true. You don’t know who offered this rate and moreover, it was under unusually good conditions.
In my experience, the standard SARON rate you get from traditional banks such as UBS or Credit Suisse is rather in the 0.9-1.1% range. As @Cortana said, negotiating the rate down to 0.5-0.6 may take some serious firepower.
Are you talking about the same thing? SARON Margin or SARON mortgage rate = SARON rate + SARON Margin?
On hypotheke.ch you an enter your details and will see that it is possible to get a SARON mortgage around 0.6% or even lower. I don’t support inefficient big banks if it’s true that their SARON margin is that high compared to competitors.
If people go down the line and find out which banks/institutions offer the best conditions, would it be possible/allowed to post their findings here? (Though I guess I’d happy pay those 119 CHF to save 0.1% on the mortgage rate).