MoneyPark Guide February 2021
When replacing or extending your mortgage, you can usually save thousands of francs by switching provider. Extending a mortgage with a new, cheaper provider is easier than you might think. However, you should be careful with the notice periods.
1: Compare and negotiate offers
Even if your house bank offered you attractive conditions when you concluded the refinancing: It is very rare that they offer the lowest interest rates when you renew. In addition, the difference between the average target rate and the best offer on the market is significant. You should therefore obtain at least three comparison offers for the same reference date from different providers. Do you want to save yourself the tedious journey from bank to insurance to pension fund? The best thing to do is to hire an independent mortgage specialist to handle your dossier and let them negotiate for you.
2: Keep an eye on the notice periods
Even if your mortgage has a fixed term, you must officially terminate the mortgage contract. The notice periods are noted in your contract. A period of three months is usual, with some providers it is six months. At this point, you should ideally have a new mortgage. Because the administrative processing of the new contract takes some time. Let the notice period expire, is your current bank likely to get in your way? and you remain tied to the previous provider. Some providers also automatically convert the mortgage debt into an expensive variable mortgage when the loan agreement expires. Therefore: Make a note of the termination dates in the calendar. And it is best to arrange for a repayment or extension of the mortgage 18 to 24 months in advance.
3: Observe the terms of the mortgage 24 months before the expiry of the mortgage
With a so-called forward or forward mortgage, it is possible to secure the current interest up to two years in advance for the extension. If you expect interest rates to rise sharply in the next few months, you can have interest rates fixed. This protects you against the expected rise in interest rates. However, this security has its price: you pay a moderate forward premium over the regular interest rates for a fixed-rate mortgage. However, this surcharge is not mandatory, because our network with over 150 financing partners also includes providers who waive the forward surcharge: Then you can secure the current interest rates without additional costs.
MoneyPark in Winterthur
Andreas Leu, MoneyPark Branch Manager Winterthur,
+41 52 260 20 91,
Here you will find more information