The rates are OK for me. I will strongly consider VIAC when my fix rate ends.
Now that I’m rereading their email to be sure, they didn’t specify the type of VIAC portfolio. In the end, I went with another bank, so I didn’t go further with their process.
at the time of application, did you have pillar 3 or Invest or both at VIAC?
These rates aren’t competitive on their own. They might only be worthwhile when bundled with a fully invested Pillar 3a. To know for sure, you’d need to calculate whether a higher VIAC rate plus strong 3a returns actually outweighs a lower mortgage rate paired with a weaker 3a setup. For reference, current top benchmark rates are 1.10–1.20% for 10 years and 0.95–1.05% for 5 years.
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I plan to FIRE in a couple of years. So VIAC mortgage can help make use of part of the VB funds to reduce amount tied up in home equity.
I could transfer PF into VIAC VB and use this to refinance my home loan and release funds.
The released funds can be used to pay off rental mortgages which have a higher interest rate than owner occupied mortgages.
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Both, but the Invest part is really small and was not mentioned in the form I filled out to get the mortgage offer. I only started it recently as a convenient way to build up invested capital for the kids.
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Don’t all banks offer passive 3a funds by now? They aren’t as cheap as VIAC or Finpension, but usually in the 0.6-0.9% TER range?
I assume most people will have a mortgage that is 10x bigger than their 3a accounts. Thus a 0.10% better Saron rate probably dwarfs the higher TER.
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0.1% difference on SARON on 1m CHF loan is equivalent to 1% (additional cost and/or expected return difference) on a 100k Pillar 3 account. Over time, Pillar 3 a grows both with indirect amortization (14.5 k CHF for 2 borrowers) and growth of the portfolio itself.
So while 0.85% SARON rate isn’t the best, but a hypothetical 0.75% SARON at a bank (with decent passive pillar 3a) doesn’t necessarily beat it over next 5-10 years timeframe). It is more of a tie.
I also matters how much HARD CASH downpayment (excluding pillar 3 / pillar 2 pledge) are banks insisting on. The ones I talked to are asking 10% hard cash. Avoiding that would make bigger difference: either way with VIAC or some good negotiation skills (that I don’t necessarily possess)
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So what if you have 0.1% less on the mortgage and 0.2% more on an equivalent 3a? You save more on the mortgage than you pay on the 3a, don’t you?
Assuming equivalent 3a (which it isn’t), and 0.2% cost difference, an equivalent LTV bank offering will start out cheaper and stays so for 5-10 years.
The cheapest non-VIAC/Finpension 3a I found is ZKB. the others (Raiffeisen, CA-NextBank, UBS, etc) cost between 0.69-0.9% and are ~30-40% CH equity and ~70% portfolio CHF hedged, etc. etc.
As I wrote above, the hard cash downpayment requirement will likely be a bigger differentiator.
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Sounds totally logic the new rules with 60% asset value for pledging.
Anyone has already finished a 3y SARON period? I guess they make a new offer with 0,85% margin rate. Do they ask for any updated documents?
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9 posts were merged into an existing topic: Finpension potential mortgage offering