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Buying in Germany with a Mortgage from Switzerland

Discussion in 'German Property' started by mart123, Sep 1, 2007.

  1. mart123

    mart123 New Member

    Hi,
    The Hypovereinsbank is offering mortgages on German property from Swiss banks. EU interest is about 5% whereas Swiss is 4%.

    Has anyone ever tried such a loan or have experience with it. The risks I see are Swiss Interest Rates and the EU/CHF exchange rate, both of which seem pretty steady.


    any advice appreciated,

    Martin
     
  2. The Soup Dragon

    The Soup Dragon Senior Member

    Those are the main risks. Might be worth getting a fixed rate in Switzerland if you know you will be holding a good few years. That'll eleiminate one risk. (I'm assuming that you can get a fixed rate with a Swiss mortgages.)

    Rental being in EU and mortgage payments being in CHF means you will still be open to fluctuations in exchange rates, but if fixed rate is better than you can get elsewhere then it'll probably be worth while. You can always put a little aside each month so that should the exchange deteriorate you will have a small pot of funds to dip into for the mortgage payments..
     
  3. bialikma

    bialikma New Member

    Hi ,
    Can you send me the details of the bank in Swiss ?
     
  4. mart123

    mart123 New Member

    Hi,
    The Hypovereinsbank doesn't say which bank it is, I think it's probably a daughter company of the Hypo.

    Conditions are:
    75000 - 650000€
    Variable Interest rates
    4% repayment per year
    to get it I suspect you need a deposit of at least 20-30%,


    thanks everyone for their replies. I think I'll go with this for part of my mortgage.

    regards,
    Martin
     
  5. bialikma

    bialikma New Member

    Thanks Martin ,
    Do you have the link of the bank ?
    Mark
     
  6. AlexBu

    AlexBu New Member

    If you can afford a loan in Germany, I think it would be better, even considering that the minimum is quite high. For a property in Berlin you can start to finance your property getting a loan of 50k € instead of 75k, just consider that
     
  7. mart123

    mart123 New Member

    Hi,
    I live in German and the hurdle for buy to let is significantly lower.

    In any case hell will freeze over before I buy in Berlin. I have ranted ( a favourite pastime) about Berlin in Posts on other sites.

    regards,
    Martin
     
  8. infoberlin

    infoberlin New Member

    how may I understand this.
    are you a professional basher?
    :rolleyes:
     
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