a New record low on the Swiss real estate market: five-year fixed-rate mortgages broken for the first time to the psychologically important 1 percent mark. You are at the end of March at 0.97 per cent, as the recent mortgage Barometer from the comparison service Comparis.ch. Customers with above average credit will get five-year mortgages is even much cheaper; and from the age of 0,41 percent, according to the quarterly publication.
A record low, there is also a ten-year fixed-rate mortgages. Make a note at the end of March 2019 at a record low of 1.20 percent. This is 26 basis points less than in the previous quarter. 1 basis point is equivalent to 0.01 per cent. Who negotiated in good or excellent credit, even pays just 0.7 per cent. Similarly, the indicative interest rates for two year fixed mortgages as low as never before. You record but with 0.92 percent, only slightly below the average indicative interest rate of medium-term mortgage.
five-year mortgages is cheaper than Libor
The pressure on the mortgage rates according to the Comparis financial expert Frédéric cardboard several reasons. The European Central Bank (ECB) has announced at the beginning of March, the key interest rate until at least 2020 at 0% to tie. The Swiss national Bank (SNB) will be bound by the hands. "It is very unlikely that the SNB will increase interest rates before the ECB," explains Papp. The turnaround in interest rates in Switzerland to move more in the future.
A further cause for the decline in mortgage interest rates, the increasing competition is: "insurers and pension funds, banks, the business with much lower interest rates in dispute," says the Comparis expert. Five-year mortgages are even cheaper than LIBOR mortgage, which was due to, among other things, the intensity of competition. These variable rate mortgages are usually offered by banks.
anyone Who has already begun in October of 2018, a ten-year fixed-rate mortgage, over 500'000 Swiss francs, pays 8100 francs interest per year. In the case of a new recording it would now 6000 francs. The difference over ten years is 21'000 Swiss francs. "Borrowers should not focus only on the interest rate. The assessment of personal risk tolerance and risk ability as well as the desired degree of flexibility for the choice of mortgage is just as important," says Papp.
Taken from "20 minutes", edited by the editors of Tamedia (aru/ta)
Created: 09.04.2019, 09:06 PM