Short term mortgage

Real Estate
1

I am looking for a mortgage with payout date next year (apartment not ready).

I want to take a short term credit for 6 months or a year (a few hundered thousands) and then pay that debt after that (by selling equity). I don’t think there is mathematical sense in taking a longer mortgage given the current rates.

What are my options? I saw some offers for 1 year SARON. I am a total noob, looking to avoid paying a lot of interest.

2

Did you take taxes into account? Or opportunity costs?
What do you mean by “given the current rates”? The money is cheap, compare it with a dataset of the last +30 years.

The last negative interest rate period was an exception, don’t rely on that :smiley:

3 Likes
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Everybody mentions saving on taxes, but not many details.
My virtual rent will still be 100% taxable, even if I own only 30% of the apartment, right?
My wealth tax won’t change. Let’s say I have 100k in cash. For the taxman it’s the same as if I had that 100k in the house equity.

If possible, I would like to hear some ideas how to get a short term mortgage (less than 18 months)?

Thanks.

4

check in your gemeinde. i own half my house so pay half the eigenmietwert.

again it varies. i paid 600k for my half of the house and the tax value for wealth tax purposes is 100k. so i save 500k on wealth tax.

i’m considering acquiring the other half just for wealth tax planning (i can offset the eigenmietwert with pension payments).

Just get a flexible SARON mortgage. UBS do this. This allows you to pay back the mortgage. you’ll pay a premium in intest rates, but for 18 months, this doesn’t really matter.

1 Like
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I totally agree! I would like to run the Maths on whether you pay the same money if you own the house outright and pay wealth tax, or you have a mortgage and page interests and amortisation.

Woudl be interesting to hear other peoples opinions on this.

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I found this - https://www.szkb.ch/docs/default-source/private---manuell/factsheet-rollover-finanzierung-1-monat.pdf?sfvrsn=1ef08ee7_12

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UBS has same option (Saron Flex). Costs +0.1% based on the “normal” Saron.
Should be the same with SZKB.

Edit: no mark up on 1 month Saron, but six months notice fee in the first three years. Penalty of 1k/1.5k.