Buying in Germany with a Mortgage from Switzerland

[mart123]

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

 

[The Soup Dragon]

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..

 

[bialikma]

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

 

[mart123]

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

 

[bialikma]

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

 

[AlexBu]

Hi,

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%,

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

 

[mart123]

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

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

 

[infoberlin]

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.

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